If you’re in need of a personal loan, Avant is one of the better options on the market, especially if you don’t have the best credit score. The company’s headquarters are located in Chicago and its president, Adam Hughes, says that they focus on lending to the typical middle-class American consumer. While you can use your personal loan for anything, the majority of Avant’s borrowers take out loans to pay urgent expenses or consolidate their debt. In fact, the company says that about half of its borrowers get loans for debt consolidation.
The Requirements of Obtaining a Personal Loan Through Avant
Avant doesn’t have very strict minimum requirements of its borrowers, making it an option for many consumers. The main requirement is that you have a credit score of 580 or higher, with the average among Avant’s borrowers being a credit score of 650. It doesn’t have any minimum credit history requirements, so you’re fine if you haven’t had accounts open for long.
There is also no debt-to-income ratio minimum requirement, although if you have a large amount of debt, you should think carefully before adding to it with a loan, unless you’re consolidating that debt. While Avant doesn’t have a set minimum requirement for gross income, it typically lends to people who make at least $40,000 per year.
Loan Terms Through Avant
Avant issues loans that range from $1,000 to $35,000, and you can get a loan with a term of anywhere from two to five years. If you need a small to medium-sized loan with flexibility regarding the term length, Avant is an excellent choice. The lender offers annual percentage rates (APRs) between 9.95 percent and 35.99 percent, obviously depending quite a bit on your credit score. If you have a high credit score, you can secure a loan at a reasonable interest rate.
There is also an origination fee with Avant that can be between 0.95 percent and 3.75 percent of your loan amount. In terms of interest rates and origination fees, Avant is competitive with other similar online lenders. The lender doesn’t charge you a prepayment fee or a processing fee if you pay by personal check. Unsuccessful payments incur a $15 fee.
One nice thing about Avant is that it gives you a grace period of 10 days after your payment due date when you can make your payment without incurring a fee. After those 10 days, there is a $25 late fee. However, Avant also has a late-fee forgiveness policy, and if you make your next three payments on time, the lender will refund your late fee.
Like other online lenders, Avant has a two-stage application process that allows you to see what kind of rate you can get before having a hard inquiry on your credit report. You start the application process by visiting Avant’s site and filling out some basic information, which includes your full name, current address, and Social Security number. Once you submit the application, Avant runs a soft credit check that doesn’t impact your credit.
If you decide that you want to borrow through Avant, then the lender will run a hard credit check on you, which can affect your credit score. Once Avant approves you for the loan, it takes an average of two days to receive the money.
Using an Avant Personal Loan for Debt Consolidation
If like many of Avant’s customers you’re planning to take out a personal loan to consolidate your debt, there are a couple things to keep in mind. The two main reasons to consolidate debt are to get a lower interest rate and save money, and to lower the number of monthly payments you’re making so there’s fewer to manage. For consumers with a large amount of debt on revolving lines of credit, such as credit cards, a loan can also help them pay back that debt on a set schedule. If you’re only making minimum payments or you keep using your credit after paying some off, getting a loan to consolidate it can help you stay disciplined in paying it.
When it comes to personal loans for borrowers with bad to decent credit, Avant is a good all-around lender. You can obtain a loan with terms that fit your needs, and the company’s 10-day payment grace period and late-fee forgiveness policy are both solid benefits. It’s always best to shop around with personal loans, especially since you can compare rates without any hard credit checks, so apply through Avant and a few other lenders. You may find that one of them offers you a better deal than the others, simplifying your decision-making process.