Avant Personal Loans: 2022 Review
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Our Take
Pros & Cons
Pros
- Able to fund loans the next business day.
- Option to change your payment date.
- Soft credit check with pre-qualification.
Cons
- Charges origination fee.
- Doesn't offer direct payment to creditors with debt consolidation loans.
- No joint, co-signed or secured loan option.
Compare to Other Lenders
 |  |  |
|---|---|---|
Est. APR9.95-35.95% | Est. APR18.00-35.99% | Est. APR6.55-35.47% |
Loan term2 to 5 years | Loan term2 to 5 years | Loan term2 to 7 years |
Loan amount$2,000-$35,000 | Loan amount$1,500-$20,000 | Loan amount$1,000-$50,000 |
Min. credit score550 | Min. credit scoreNone | Min. credit score560 |
Compare estimated rates from multiple lenders
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Full Review of Avant
Avant is an online lending platform that offers personal loans to borrowers with fair and bad credit (689 or lower FICO score); the company says most of its customers have a credit score from 600 to 700. It charges origination and late fees, but its loans have annual percentage rates consistent with other bad-credit loans.
Avant is best for borrowers who:
Have a credit score from 600 to 700 FICO.
Want to apply for and manage a loan online.
Need funds within a business day or two.
Want to repay the loan over two to five years.
» COMPARE: See your bad-credit loan options
Avant at a glance
Affordability |
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Loan flexibility |
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Key terms to know about personal loans
Where Avant stands out
Soft credit check to pre-qualify: You can see the potential loan amount and rate on an Avant loan if you pre-qualify. Pre-qualifying doesn’t affect your credit and doing so can help you understand how loan payments fit into your monthly budget. If you move forward with a loan application, the lender will do a hard credit pull, which can temporarily knock a few points off your score.
Next-day funding: Avant says it can deposit the funds from a personal loan into your account the day after your application is approved.
Option to change your payment date: Avant customers can’t choose their payment date initially, but they can change it up to two times during their repayment term. Other lenders may let you choose your initial payment date or change it more often due to unexpected changes in your cash flow, like a new job with a different payday.
Mobile app: Avant has a mobile app where borrowers can make payments, adjust payment dates and see their payment history.
Where Avant falls short
Origination fee: Avant may charge an origination fee up to 4.75%, though it says the majority of borrowers receive an offer without the fee. Not all lenders charge an origination fee, but you may find even higher fees with other bad-credit lenders.
No co-signed, joint or secured loan option: Avant doesn’t allow borrowers to add a co-signer or co-borrower to their application, or to secure the loan with collateral. Some lenders allow applicants to add someone or apply for a secured loan to improve their chances of qualifying.
No direct payments to creditors: If you’re consolidating credit cards and other high-interest debts, Avant will deposit the funds directly into your account rather than pay the debts for you. Some of Avant’s competitors offer a direct pay feature, which simplifies the consolidation process.
» MORE: Best debt consolidation loans
What to know about Avant
In August 2020, Avant settled with the Colorado attorney general’s office after the state alleged that Avant partnered with out-of-state banks to offer rates above the state-mandated maximum. Avant CEO James Paris said in an emailed statement that the settlement will help protect Colorado borrowers from abusive, high-cost lenders.
In April 2019, Avant settled a Federal Trade Commission lawsuit alleging the company withdrew unauthorized payments from consumers’ bank accounts and collected additional money even after a loan had been paid off.
How to qualify for an Avant loan
Avant’s minimum borrower requirements include:
Credit score: 550 (using FICO 8 and Vantage 3 scores).
Monthly net income: $1,200, which can include alimony or other types of income.
Debt-to-income ratio: 70%, including mortgage or rent payment.
Monthly free cash flow: $500.
The average qualified Avant borrower has:
Credit score: 644.
Monthly net income: $4,000.
Debt-to-income ratio: 30%, before the new loan.
Monthly free cash flow: $2,800.
Loan example: A three-year, $10,000 loan with a 20.5% APR would have monthly payments of $374. You would pay $3,470 in total interest on that loan.
How to get an Avant loan
Pre-qualify on NerdWallet
NerdWallet recommends comparing loans to find the best rate for you. Pre-qualifying may get you personalized rates from multiple lenders that partner with us, including Avant. Pre-qualifying won't impact your credit.
Apply on Avant
You can fill out an application online. You'll be asked to provide some personal information, including your address, Social Security number and monthly income.
on Avant's website
Methodology
NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial institutions. We collect over 45 data points from each lender, interview company representatives and compare the lender with others that seek the same customer or offer a similar personal loan product. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
This methodology applies only to lenders that cap interest rates at 36%, the maximum rate most financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
Find the Best Personal Loan
Frequently asked questions
Avant is an online lender that provides personal loans in 45 states. Loan APRs don't exceed 36%, which is the maximum rate most consumer advocates say an affordable loan should have. Though Avant charges late and origination fees, rates are consistent with other bad-credit lenders.
Avant has settled two lawsuits for its practices in recent years. A 2020 lawsuit alleged that Avant's loans exceeded Colorado's state-mandated max APRs. Another with the FTC alleged the company withdrew unauthorized payments from consumers' bank accounts.
Avant says it can approve a loan application within one business day if the applicant submits all the necessary documentation immediately. Once approved, the lender says funds are generally deposited via ACH the next day.
» MORE: Fast personal loans
Borrowers can only have one Avant personal loan at a time, according to the company.
