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Avant Personal Loan review

An Avant personal loan is perfect for low credit score borrowers who want to pay off debt and enhance rating.

Avant
(Image: © Avant)

Our Verdict

Avant is a good option for those with a low credit score that want to consolidate debt and improve their credit score as they pay it off. Features like a good app, late fee reimbursement and other application for home improvements and emergency funds make this appealing. High rates and fees are worth keeping in mind.

For

  • Low credit score accessible
  • Flexible payments
  • Refinancing

Against

  • No direct debtor payments
  • No co-sign

Avant sits among the best personal loans as one aimed at those with a poor credit rating. As such it's an ideal loan for those looking to consolidate debt, like paying off credit cards with one fixed-rate loan. This is also good for home improvements and unexpected expenses.

Since this is aimed at those with a low credit score it carries out a soft credit check first, to pre-qualify, so you won't have to worry about risking further damage to your credit rating if you just want to see what your options are.

Despite the risk Avant takes, it does manage to keep rates relatively low starting at 9.95% – so not as low as some but then with a minimum credit score requisite of 580, this is pretty rare.

Loans range in amount but top out at $35,000 with rates that can be as high as 35.99% so you'll need to be sure you can repay what you borrow if you want that credit score to climb.

Fees and rates are transparent so you know what you're getting into right from the start. Thanks to flexible payment options you should be able to go into this loan without too many worries. But, in case you have some, here's everything you need to know about Avant personal loans.

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Cost: How much does Avant charge?

Avant Personal Loans: key figures

APR variable: 9.95 - 35.99%
Loan range: $2,000 - $35,000
Min credit score: 580
Term: 2 - 5 years

  • Minimum APR: 9.95%
  • Maximum APR: 35.99%

Avant doesn't claim to have the lowest APR out there but for the level of credit score ratings it offers, the rates are competitive.

Starting out at 9.95% this low end isn't as low as rivals like Lending Club and SoFi that are nearer to 5.99%, but then they often require a minimum credit score of 640.

Since this is a high risk loan for the company it's high end is very high indeed at a staggering 35.99%. Still, that may be lower than some credit card rates meaning even the high end could make a saving for you when consolidating debt.

Rates vary depending on the loan period also, with the longer term costing more. The loan offers range from two to five years and the amounts stretch from $2,000 right up to $35,000.

Avant Personal Loans review: Missed payment forgiveness

  • Refund on missed payment charge
  • Make three consecutive payments on time

Avant does charge fees, but it also offers a chance to get that money back. The fee this applies to only is the late payment fee.

If you miss a monthly payment you will be charged a fee but then if you pay that back by getting back on track paying three consecutive months, you'll get the fee refunded back to you. 

Avant Personal Loans review: App

  • iOS and Android app
  • Make payments and more

The Avant app is a really useful tool for those borrowers that want to manage their funds anywhere and any time. The app, available on iOS and Android, is free to download and allows you control of your loan as well as the ability to apply for a loan.

From the app you can view payment history, see upcoming payments and make payments. You can also turn on push notifications if you would like to get reminders about when a repayment is due.

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Avant Personal Loans Review

(Image credit: Future)
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Avant Personal Loans Review

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Avant Personal Loans Review

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Avant Personal Loans review: Requirements to qualify

  • At least a 580 credit score
  • No minimum income requirement

Avant goes lower than most lenders when it comes to credit scores, offering loans to people with scores of 580 and above. Over the first six months of repayment the average Avant borrower see a 12 point increase in their credit score.

There is no minimum wage requirement to apply for an Avant personal loan. Most borrowers typically earn between $40,000 and $100,000.

Avant Personal Loans review: Fees

  • Origination fee of 4.95%
  • Late fees

Avant does charge fees with this being made clear from the outset thanks to an origination fee of 4.95%. 

This is a lot more than the average lender charges, at between half and one percent. So on a $10,000 loan the charge will immediately cost you $495 so you'll actually get a $9,505 amount.

Late fees are charged at a flat $25 amount. However, if you manage to make your subsequent three months of payments on time then Avant will refund you that money back – a really nice feature.

If your bank account is linked to the loan and a repayment bounces then you will be charged a fee of $15, so it's important to always have enough in the account at time of payment in order to avoid this extra charge.

Avant Personal Loans review: Application process

  • Soft pull
  • APR shown right at the start

Avant initially asks for some details so that it can do a soft pull on your potential account. This means you don't have to worry about the check affecting your credit score. This is so detailed you can even see your offered rates before you commit to the hard credit check, so you'll know if this is right for you immediately.

While there is no minimum earning requirement, if you're at the low end of the credit rating score then an income of $20,000 or more will help your chances for a better rate. 

Avant Personal Loans review: What users say

  • Two star JD Power rating
  • 807 points

The JD Power 2019 customer satisfaction study found Avant to be on it's top rated providers of personal loans. As such it received an 807 point score out of a possible total of 1,000. No other low credit loan specialist of this kind made that list.

The two star rating comes from a mixture of categories with two stars for interaction, billing and payment, plus loan offerings and terms but a three star rating for application and approval process.

Avant Personal Loans review: Verdict

Avant offers a great personal loan option for those who have a low credit score but want to keep their APR down when consolidating debt. This also applies to those looking to carry out home improvements or pay off emergency amounts.

Features like the soft credit check, decent app and late fee refund are really attractive. But the steep origination fee and potentially high rates are the balancing negatives - that said, these are clearly laid out from the start.

If you are struggling to find credit this is a great option to help. However, if you have a decent credit rating you can find better rates elsewhere. 

Compare personal loan rates at LendingTree
Credible is the perfect place to search for the best personal loan rates. Get rates from hundreds of banks and lenders without having to fill out the same details again and again.
View Deal