Avant Personal Loans

Josh Patoka
November 11, 2020

Avant offers secured and unsecured personal loans between $2,000 and $35,000 that can be used for many purposes. Other lenders offer a loan amount of up to $50,000 but require a higher minimum personal credit score in the mid-600s. Applicants only need a 580 personal credit score and a gross annual income above $20,000 to qualify for an Avant loan.

All Avant personal loans have a fixed interest rate with a 9.95% to 35.99% APR and an origination fee of up to 4.75%. Repayment terms range from 24 months to 60 months with monthly payments. No co-signer or collateral is required. The starting interest rate of 9.95% is higher than other lenders, and people with high credit scores may find a better rate at another lender. But applicants with not-so-perfect credit can expect rates similar to other lenders.

Secured personal loans have a maximum origination fee of 2.75%, with a borrowing amount from $5,000 up to $25,000. The repayment term ranges from 24 months to 48 months.

Where Avant Stands Out

Minimum 580 personal credit score required: Other lenders can require a credit score as high as 670 to qualify for a personal loan. Avant only requires a 580 personal credit score. Although just having a 580 credit score may not guarantee getting the lowest interest rate offered, it’s at least possible to get financing for up to 5 years.

No collateral or co-signer required: Every Avant personal loan is unsecured and doesn’t need collateral or a co-signer to qualify for a higher borrowing amount. Other lenders may require collateral for personal loans as small as $7,000, depending on your state of residence.

Next day funding: Most borrowers receive their loan funds the next day when their application is approved by 530 pm EST. Other lenders may take up to 5 days to deliver the loan funds.

Repayment terms up to 5 years: Many alternative personal loan lenders only offer 3 and 5-year repayment terms. An Avant 2-year repayment term can result in a lower interest rate in comparison to getting a 3-year term with another lender.

Where Avant Falls Short

Interest rates start at 9.95% APR: Applicants with high credit scores and low debt-to-income ratios may get a better interest rate at another lender. For applicants with lower credit scores, Avant’s interest rates are competitive with other lenders.

Origination fee up to 4.75%: Your creditworthiness determines the origination fee that can be up to 4.75% of the initial loan balance for an unsecured loan. This fee is competitive with most lenders and is the only other loan expense besides the monthly interest charges. Moreover, applicants with a strong credit profile have the possibility of paying a lower origination fee.

Self-employed borrowers must present two years of tax returns: Avant requires self-employed borrowers to provide two years of tax returns to verify their income. Most lenders only require the most recent tax return from self-employed applicants.

Loans up to $35,000: Avant only issues loans up to $35,000. This is still a substantial amount for a personal loan and can be enough to get a business idea off the ground. However, well-qualified borrowers will be able to borrow up to $50,000 with other lenders.

Is Avant The Best Option For Me?

Avant is the best fit for those with a personal credit score between 580 and 640, as many lenders won’t lend to this credit score range. Applicants with a high credit score are more likely to qualify for a lower interest rate at another borrower. You may also consider Avant if you don’t want a secured personal loan that requires a co-signer or collateral when you need to borrow a large amount.