Avant Personal Loans Reviewed in Depth

Avant personal loans reviewed

A US-based internet search for debt consolidation loans will most likely show Avant personal loans as one of your top choices. Part of the reason for this is because Avant is willing to do business with borrowers who have less-than-perfect credit. They also offer next-day funding for qualified borrowers.

Who is Avant?

Avant is a fintech app founded in 2012. At that time, their mission was to service “middle-income” people having difficulty borrowing from traditional banks and credit unions. Since the company was established, Avant has done business with over two million people in 44 different states.

Pros of Avant Personal Loans

  • Avant offers next-day funding.
  • Avant has lower credit score requirements than traditional lenders.
  • Avant has less stringent income requirements.

Cons of Avant Personal Loans

  • Origination fees on consolidation loans are high.
  • Interest rates for good-credit borrowers are higher than normal for good-credit borrowers.
  • Avant gives funds directly to borrowers, not creditors.
  • This lender does not allow joint applicants or cosigners.
  • Secured loans are not an option at Avant.
  • Avant is not available in Hawaii, Iowa, New York, Maine, Vermont, or West Virginia.

Services Offered by Avant

In recent years, Avant has expanded its reach with consumers looking for debt consolidation loans. They advertise loans in amounts ranging from $2,000 to $35,000 with APRs of 9.95% to 35.99%. However, those rates are subject to change as prime interest rates rise and fall. Loan terms range from 12 to 60 months. Avant mentions next-day funding frequently in their promotions.

Avant also offers home improvement loans for exterior and interior projects and emergency loans for individuals in need of immediate financial assistance. These loans have different names, but they are the same as debt consolidation loans. The rates and terms don’t change if the borrower’s purpose is to make home improvements or acquire cash resources.

Customer Qualifications or Eligibility to Work with Avant

Like all lenders, Avant has criteria to approve potential borrowers. They require a minimum credit score of 550 and a minimum monthly income requirement of $1,200. These are both significantly lower than what a traditional lender or even an online bank requires. Avant promotes these requirements openly on their website.

Avant’s Debt-to-Income Ratio is Different

The applicant’s debt-to-income ratio (DTI) is another variable in the lending criteria. Avant does this differently than traditional lenders because they also include monthly rent. Banks and credit unions include mortgage payments, not rent payments. Avant has a maximum debt-to-income ratio of 70%.

Customer Details

How much Debt Do Avant Clients Have?

Debt is not a factor in getting approved for Avant personal loans for debt consolidation. This lender focuses on providing installment loans for credit-challenged consumers. Those loans can be used for debt consolidation, home improvements, or emergency cash. The approval criteria are the same for all these choices.    

What Avant Personal Loans Won’t Cover

Avant will not pay your creditors directly. All funds are sent via ACH directly to the borrower, who then has total discretion on where they choose to use those funds. There are no restrictions or guidelines on that other than using the funds for illegal activities. Any report of that will eliminate your ability to get further funding and subject you to legal action.  

How Avant Personal Loans Work

The application process is simple, and approval can be given within a few minutes. Applicants will be required to submit their social security number and bank account information. Once approved, funds will be sent via ACH to the routing and account number provided. Repayment will be debited from that account and made according to the terms and conditions of the loan.   

Qualifications

How Much Debt Do You Need to Work with Avant?

There is no debt requirement to work with Avant, but you may not be eligible for a loan if your debt is more than 70% of your income. In that instance, applicants may be asked to pay down debt before reapplying or they might be referred to a debt settlement or debt management solution, depending on where they submit their application.  

Customer Timeline when Working with Avant

Loan approvals can happen within minutes of applying. Funds can be available in the borrower’s bank account the following day if the Avant personal loan application is submitted before 4:30 PM, but that’s partially dependent upon the bank that’s receiving the funds. Repayment terms range from 12 to 60 months (1-5 years).

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Pros

  • Avant offers next-day funding.
  • Avant has lower credit score requirements than traditional lenders.
  • Avant has less stringent income requirements.

Cons

  • Origination fees on consolidation loans are high.
  • Interest rates for good-credit borrowers are higher than normal for good-credit borrowers.
  • Avant gives funds directly to borrowers, not creditors.
  • This lender does not allow joint applicants or cosigners.
  • Secured loans are not an option at Avant.
  • Avant is not available in Hawaii, Iowa, New York, Maine, Vermont, or West Virginia.

Kevin D. Flynn

Kevin D. Flynn

Kevin D. Flynn is a former financial professional, business coach, and freelance financial writer. He lives in Leominster, Massachusetts with his wife Evelyn, two cats, and ten wonderful grandchildren. When he’s not working, you’ll find him at the golf course or on his back porch reading classic sci-fi novels.

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