Avant Bad Credit Loan Review

Avant is a Chicago based company disrupting the online lending industry. Founded in 2012, their mission is to lower the barriers and costs involved with borrowing money. Today, Avant is one of the largest platforms targeted for those with a low credit score.

avant bad credit review
Best for
/5
Rating
$ /mo
Starting Price
Visit Site
Table of Contents

    The lending platform offers both personal loans for those with bad to fair credit as well as credit cards. Rates and terms vary depending on the state in which you live.

    When it comes to borrowing from Avant, the experience is optimal, especially for those who have a hard time securing loans from other platforms.

    Personal loans from Avant have excellent reviews online, across the board. The company has a customer satisfaction rate of 95%. On Credit Karma, the loan is rated 4.5 out of 5 stars and has over 345 reviewers. Borrowing is fast and straightforward through Avant.

    Avant is the right choice for anyone who has poor credit and a high debt-to-income ratio. It is one of the most well-known loan platforms in the industry. Online and mobile tools help to keep you on track with payments, and credit health tools can assist you with getting your finances in order.

    Whether you are trying to consolidate debt, pay for a dream vacation, or take care of an unexpected expense, Avant can help. You can qualify for a loan up to $35,000, which should be enough to cover the majority of your personal needs.

    Avant Financial Terms in a Glimpse

    Loan Amounts
    $2,000 to $35,000
    Term Length
    2-5 years
    Loan Rates
    9.95%-35.99% APR
    Min Credit Score
    580
    Better Business Bureau Rating
    A-
    Time to Funding
    1-2 business days

    Avant Highlights

    Let’s delve into the highlights of Avant as a company and discuss whether they are the right choice for your financial situation. Avant could be the best option for you if you fit their criteria. Read on to find out why.

    Pre-qualify With Soft Credit Pull

    Like many other lenders, this company allows you to check your rate online without running a hard credit check. Once you sign up, Avant will perform a soft credit inquiry to identify your loan options. This step is done to see what rates are the best available for you. The pull will not affect your credit score. It will only show up on your report and not for others.

    To check your rate, you need to supply Avant with your personal information, including your address, email, phone number, Social Security number, estimated credit score, monthly income, loan amount, and loan purpose. The entire process only takes a few minutes.

    Once you accept a loan offer, Avant will ask you to upload documents to verify your identity and then will proceed with a hard credit check.

    High Debt to Income Ratio Allowed

    Have you ever been turned down from a loan because of your debt-to-income ratio? We know it can be frustrating. When someone is asking to borrow money, it’s most likely the lender is aware that you don’t have enough. If you are struggling with your finances, chances are you have a high debt-to-income ratio.

    So what is a debt-to-income ratio, and how high can it be in order to qualify for a bad credit personal loan from Avant?

    Your debt-to-income ratio, or DTI, is how lenders know how much monthly debt you have compared to the amount of money you earn. If you want to calculate this number on your own, all you have to do is divide the total monthly debt payments by the gross monthly income. Most lenders typically prefer borrowers to have a DTI of 36% or below. Luckily, Avant accepts higher.

    Depending on your credit score, APRs range from 9.95% to 30.95%.

    Line of Credit

    A line of credit is a set borrowing limit that can be used at anytime. The borrower can access the credit as long as they do not exceed the maximum amount. Avant makes it simple to obtain a line of credit through an AvantCard.

    The available credit, known as "open to buy," represents the amount of money accessible to use for purchases. Avant will periodically review your account for credit increases, but you ask to increase it or decrease it at any time by calling 1-885-AVANTCARD.

    If you qualify for a credit line increase, the lender will increase your line. Avant does not charge any fees for going over your credit limit.

    Credit Health Tools

    When you borrow from Avant, you are provided with a dashboard of tools that allow you to stay up to date with your loan and track your progress. You also will have access to quality customer support seven days a week. The online platform is straightforward and easy to use.

    The online mobile banking app allows you to log in and manage your loan anytime, anywhere, and from any device. You can check your rates on the site without worrying about your credit score suffering. The program makes it easy to see upcoming payments and payment history. You can choose to receive push notifications about the account and can manage transactions.

    You can’t apply for a loan or credit card through the Avant mobile application, that must be done through www.avant.com.

    Hardship Programs:

    You would request a hardship program from your lender when you are in debt over your head, and are finding it hard to make minimum payments. These programs re-age your account and lower monthly payments.

    Avant offers some repayment plans that reduce your monthly payments for a few months or longer if you are experiencing financial hardship.

    No Prepayment Penalty

    Also known as 'prepay' in the industry, a prepayment penalty is an agreement between a borrower and a lender that will regulate when you can make payments on a loan. With Avant, you can borrow up to $35,000 with terms between two and five years, and never have to worry about prepayment penalties.

    Many lenders, Avant as an exception, do this to collect on the compounded interest. With Avant, there is no punishment if you pay the loan early, and doing so can save you a lot of cash in the long run. The fact that there are no prepayment fees is one aspect of borrowing from Avant that we appreciate.

    Unsecured Loans

    Like most online lenders, the borrowings from Avant loans are unsecured. What is an unsecured loan? It is a loan that will be approved without any need for collateral. Instead of pledging based on assets, you will qualify based on your credit history and income. This means that no matter if you struggle to make payments on your loan, Avant will never take physical property such as a home or a vehicle.

    Avant Fees

    The administration fees range from 0.95% to 4.75%. Avant refers to this cost as an 'origination fee'. The company used to offer fee-free loans, but today that isn’t the case. You will be charged $25 for late payments, though this varies state by state. Avant also has a late-fee forgiveness program that refunds the late payment fee after three on-time payments made consecutively. If you don't have enough money to cover your monthly installment, you will be charged $15.

    General Conditions:

    Avant loan offers are for those who have poor to moderate credit scores. The average Avant borrower has a score of between 600 and 700. The minimum credit score accepted is 580. The typical Avant borrower has an income of at least $50,000.

    All those who wish to take out a personal loan from Avant must be a United States resident with a Social Security Number. Borrowers must be over 18 years of age and have valid identification and access to a bank account that accepts electronic transfers.

    If you don’t meet the credit and income requirements from Avant, they will allow you to take on a loan with a cosigner/co-borrower. A cosigner is someone who signs a loan application agreeing to make the payment if the signer is unable to. This person will assume legal responsibility for the loan. A co-borrower applies for a loan with the primary applicant, and the two are both responsible for paying back the loan.

    The Bottom Line

    An Avant personal loan is ideal for anyone who has a modest income, needs flexibility with payments, and who has poor credit. If you need to consolidate debt or pay for a surprise expense, but your credit score is bad or fair, we recommend checking out this lender.