Avant Personal Loans Review – In the event you Apply? – Credit Sesame
When unexpected financial problems strike, a personal loan offers a fast solution. An unsecured loan recipient may use the money for anything from consolidating debt to paying unexpected expenses, taking a trip or buying a car. Avant is a personal bank loan lending platform and is among a category of online personal bank loan options with fast, easy applications and competitive rates of interest.
Avant sticks out from a number of its competitors by accepting applicants with lower credit scores. Before you apply for this or any personal loan, applicants should research all of the associated fees and terms and compare personal loans through Avant to other popular options to ensure they receive the most competitive rates available.
Loans through Avant: The applying Process
Avant offers access to loans in amounts from $2,000 to $35,000 at annual percentage rates (APRs) that vary from 9.95% to 35.99% and terms from 24 to 60 months*. Reviews from customers reveal that the client service team provides quality plan to answer any queries or concerns quickly. Additionally, Avant's application is transparent and simple, with just three basic steps:
Step One: Check Rates
This soft credit check Avant performs requires just a couple minutes and some simple information. As an added bonus, this step doesn't affect the applicant's credit score.
Step Two: Choose a Loan
Applicants who receive approval could get several options for their requested amount borrowed with varying terms, APRs and payment per month amounts. For example, Suzanne received approval for a $10,000 loan. She had two options: financing with an APR of 9.96%, a phrase of 36 months along with a payment of $322.48 monthly or a 60-month loan having a 15.96% APR and a payment of $242.97 monthly.*
Step Three: Sign the Agreement
Applicants sign the borrowed funds agreement and add their bank information on Avant's secure website. In some cases, applicants receive funds as soon as the next working day. Some applicants need to provide additional documentation to verify their income levels and identities, in which case it will take as much as 1 week to get the money.
Applicants with higher credit ratings get access to lower interest unsecured loans having a wider variety of terms and options. Before applying for a personal loan, compare the rates, fees, terms and benefits of loans through Avant with other popular lenders such as LightStream, Discover and Prosper.
Unlike Avant's loan requirements, LightStream personal bank loan applicants require a credit score above 680, making LightStream loans more suitable for applicants with good credit, at least five years of credit history, a low debt-to-income ratio along with a positive credit rating with minimal payment delinquencies.
LightStream's unique policy of determining an applicant’s rate of interest based on what she or he buys sets it aside from other unsecured loans. For instance, both Paul and Holly have excellent credit and healthy annual income levels. Paul applies for any three-year, $25,000 loan to consolidate his debts, and Holly applies for the same add up to purchase a new car. LightStream tailors its rates of interest for all sorts of personal loans based on the quantity of risk that each one poses. Because buying a new car is a lesser credit risk than paying down debt, Holly gets a 2.19% APR, while Paul’s APR is slightly higher at 5.29%.
To be eligible for a Discover personal loan, applicants require a minimum annual salary of $25,000, that is lower than the required minimum for Avant. Conversely, Discover's minimum credit rating is nearly 100 points higher than Avant's, which makes this personal bank loan a sub-par choice for anyone with poor credit. Even though the APR range for Discover unsecured loans is greater than LightStream's range, the maximum APR of 24.99% offers among the lowest among popular personal loan options.
What constitutes a Prosper personal bank loan stay ahead of others may be the company's peer-to-peer lending model, which funds loans from investors instead of using Prosper's own funds. Applicants must have a good credit score of 640 or better. The borrowed funds process includes an online personal bank loan application along with a soft credit check based on the applicant’s credit info on file with Experian, the credit bureau that partners with Prosper.
After applying, a job candidate receives loan options with varying loans, fees and rates of interest and can pick the one which meets his or her needs before filling out a more detailed application. Prosper places the loan on the site's marketplace for investors to finance. In the meantime, the company verifies the applicant's income, identity and other important information. Investors must fund a minimum of 70% of the loan for the applicant to become eligible to borrow the amount. The procedure moves quickly, however it can take as much as five working days.
Personal Loans: Quick Comparison of Popular Options
The chart below supplies a visual comparison of Avant, LightStream, Discover and Prosper unsecured loans.
|APR||9.95% to 35.99%||4.99% to 14.49%||6.99% to 24.99%||5.99% to 36%|
|Origination fees||up to 4.75% of the loan amount||None||None||1% to 5% from the loan amount|
|Late payment fee||Varies by state||None||$39||$15 or 5% from the payment amount, whichever is more|
|Loan amounts||$2,000 to $35,000||$5,000 to $100,000||$2,500 to $35,000||$2,000 to $35,000|
|Loan Duration||2 to 5 years||2 to 7 years||3 to 7 years||3- or 5-year|
|Average time it takes to get funds||As soon because the next business day or inside a week||As soon as 24 hour or within 30 days of approval||Next day or as much as one week||3 to 5 business days|
|Minimum credit score||580||680||660||640|
|Applicants? average income||$40,000+||Unspecified||Minimum of $25,000||$83,000|
Should You Apply?
Because Avant only runs a soft credit check within the preliminary stages, applicants can feel confident about checking their loan options through Avant without lowering their credit ratings. Around the positive side, Avant boasts high customer approval ratings. With its relatively hefty APR range, loans through Avant are geared toward applicants with lower credit scores who need flexible payment options and wish to consolidate the money they owe.
Applicants with higher credit can also be entitled to a 0% interest promotional offer from a charge card company or a home equity credit line to obtain the necessary funds, but loans through Avant work well for applicants who meet income requirements but have less-than-stellar credit. Without prepayment fees, loans through Avant offer a viable alternative to many payday loans out there for those who have poor credit.
Avant branded credit products are issued by WebBank, member FDIC.