What Are Avant Personal Loans?

Avant personal loans are unsecured lending products designed for consumers across different credit backgrounds. Unlike secured loans that require collateral, Avant provides access to funds based primarily on your creditworthiness and financial situation. Loan amounts typically range from $2,000 to $35,000 with terms spanning 24 to 60 months.

As a financial technology company founded in 2012, Avant has served over 1.5 million customers by focusing on middle-income consumers who may have limited options with traditional banking institutions. Their digital-first approach streamlines the application process, often providing quick decisions and funding as soon as the next business day after approval. Interest rates vary based on your credit profile, income, and other factors that determine your overall loan terms.

How Avant Personal Loans Work

The Avant loan process begins with a simple online application that performs a soft credit check to determine your eligibility without affecting your credit score. This prequalification stage gives you a preview of potential loan terms before you commit to a full application. Once you decide to move forward, Avant conducts a hard credit inquiry and evaluates your complete financial profile.

After approval, funds are typically deposited directly into your bank account within one business day. Repayment occurs through fixed monthly installments over your selected term length. Avant offers automatic payment options to help ensure on-time payments, though they also provide flexibility for payment date adjustments when needed. Their transparent fee structure includes potential origination fees (administration fees) that are deducted from your loan proceeds, and there may be late payment fees if you miss your due date.

One notable feature is Avant's accessibility for borrowers with fair credit scores (580-669). While traditional banks might require excellent credit for personal loans, Avant's more flexible underwriting makes financing accessible to a broader range of consumers, though this typically comes with higher interest rates than those offered to prime borrowers.

Provider Comparison: How Avant Stacks Up

When comparing personal loan providers, several factors distinguish Avant from competitors in the marketplace. The table below highlights key differences between Avant and other major lenders:

  • Avant Avant - Credit score minimum: ~580, Loan amounts: $2,000-$35,000, APR range: 9.95%-35.99%, Origination fee: Up to 4.75%
  • SoFi SoFi - Credit score minimum: 680, Loan amounts: $5,000-$100,000, APR range: 8.99%-25.81%, Origination fee: None
  • Upstart Upstart - Credit score minimum: 600, Loan amounts: $1,000-$50,000, APR range: 6.7%-35.99%, Origination fee: 0-10%
  • LendingClub LendingClub - Credit score minimum: 600, Loan amounts: $1,000-$40,000, APR range: 8.05%-36.00%, Origination fee: 3-6%

Avant positions itself as a middle-ground option, particularly appealing to borrowers with fair credit who need moderate loan amounts. While SoFi caters to borrowers with stronger credit profiles and offers higher loan amounts with no origination fees, Avant provides more accessibility to those with lower credit scores. Upstart uses alternative data for approval decisions, potentially benefiting younger borrowers with limited credit history but solid earning potential. LendingClub offers similar credit score requirements to Avant but with potentially higher origination fees.

Benefits and Drawbacks of Choosing Avant

Avant personal loans offer several advantages that make them attractive to many borrowers. First, their accessibility for fair credit applicants opens doors for financing that might otherwise be closed with traditional lenders. The quick funding timeline—often next-day after approval—proves valuable during urgent financial needs. Additionally, Avant's loan management platform provides user-friendly tools for payment scheduling, refinancing options, and account management.

However, there are important limitations to consider. Avant's interest rates trend higher than those offered to prime borrowers by competitors like Marcus by Goldman Sachs. The origination fee (up to 4.75%) reduces the actual funds received and increases the effective cost of borrowing. Also, while their loan amounts suit many purposes, borrowers needing larger sums for major expenses might find the $35,000 maximum insufficient compared to providers like LightStream, which offers personal loans up to $100,000.

Avant does provide flexibility with payment date changes and potential refinancing opportunities for customers who demonstrate positive payment history. Their transparent communication about fees and terms helps borrowers understand the full cost of their loan, which builds trust despite the higher rates. For those with fair credit looking to rebuild their financial profile, Avant reports payment activity to all three major credit bureaus, potentially helping improve credit scores with responsible management.

Pricing and Terms Overview

Understanding Avant's pricing structure helps determine if their loans align with your financial needs. Interest rates range from 9.95% to 35.99% APR, with your specific rate determined by credit score, income, existing debt obligations, and loan amount. The wide range reflects Avant's risk-based pricing model that accommodates borrowers across various credit tiers.

Beyond interest rates, Avant charges an administration fee (origination fee) of up to 4.75% of the loan amount, which is deducted from your funds before disbursement. For example, if you borrow $10,000 with a 4% fee, you'll receive $9,600 but repay the full $10,000 plus interest. Late payment fees of up to $25 apply if payments aren't made within 10 days of the due date, and unsuccessful payment fees may be charged if your payment method is declined.

Avant offers loan terms between 24 and 60 months, allowing you to balance monthly payment amounts against total interest costs. Longer terms reduce monthly payments but increase overall interest paid over the life of the loan. Unlike some competitors such as Discover Personal Loans, which offers terms up to 84 months, Avant's maximum 60-month term may result in higher monthly payments for larger loan amounts. However, their lack of prepayment penalties means you can pay off your loan early without additional costs, potentially saving on interest expenses.

Conclusion

Avant personal loans serve an important niche in the lending marketplace by providing accessible financing options for borrowers with fair credit profiles. While their interest rates and fees are higher than those offered to prime borrowers by traditional banks, they create opportunities for financing that might otherwise be unavailable. When considering an Avant loan, carefully evaluate the total cost of borrowing against your financial needs and explore alternatives through Credible or NerdWallet to ensure you're getting terms that work for your situation. With transparent policies, quick funding, and flexible management tools, Avant provides a viable solution for consumers needing personal loans without perfect credit histories.

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This content was written by AI and reviewed by a human for quality and compliance.