Avant personal loan review: Multiple repayment options and no prepayment penalty

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In a Nutshell

Avant personal loans offer multiple repayment options and aim for fast funding if you’re approved — sometimes within one business day. But these loans come with a variety of fees, which may make them costly depending on your terms.

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Pros Cons
No prepayment penalties Higher APRs than some other lenders
Multiple repayment options Not available in all states
Avant aims for fast funding if you’re approved Administrative, late and dishonored payment fees

What you need to know about an Avant personal loan

Avant offers unsecured personal loans ranging from $2,000 to $35,000. The typical Avant borrower has a credit score in the 600 to 700 range, according to the company, so you don’t have to have squeaky-clean credit to get approved.

Although credit can be an important factor in a lender’s decision-making process, lenders generally consider a host of factors, such as your debt-to-income ratio.

Avant offers loans to people who live in most states (except for Iowa, Colorado, New York, Vermont and West Virginia).

Fees and penalties

Avant may charge an administration fee of up to 4.75%, which it will automatically deduct from your loan proceeds if your loan is approved and funded. Disclosed as part of your loan offer, the administration fee is nonrefundable once your loan is issued.

Avant may also charge a late fee may if you miss a scheduled payment. And you may face a dishonored-payment fee if one of your scheduled payments is rejected and not paid.

Some other lenders don’t charge these types of fees, so you may want to look elsewhere if you want to avoid paying just to apply or you’re worried about making all of your payments on time.

Fast funding

Avant says it tries to disburse loan proceeds directly into your bank account as quickly as possible — often by the next business day after you’re approved. But this depends on each situation and the bank where the funds are being deposited.

This can be a big benefit if you need access to the money quickly, especially if other lenders would take days or more than a week to deposit the funds.

Higher APRs

Avant’s interest rates may be higher than those offered by other lenders. If you have good credit, you’re probably better off securing a personal loan from another lender since some lenders offer lower APRs.

Multiple repayment options

Avant loan lengths range from two to five years and can be repaid early without a prepayment penalty. Avant offers a good deal of flexibility when it comes to paying off your loan. You may enroll in automatic monthly payments or you can pay via another method, including some credit cards, debit card, paper check, cashier’s check or money order.

A closer look at Avant personal loans

Avant is a Chicago-based lender that was founded in 2012. Its mission is to “lower the barriers and costs of borrowing.” Here are some other important details to know.

  • Avant personal loans are originated by WebBank, which is a member of the Federal Deposit Insurance Corporation, or FDIC.
  • Once a loan is issued, the amount and terms are fixed until you’ve repaid the loan. But there may be an opportunity to refinance the loan to receive additional funds and/or a lower annual percentage rate, or APR.
  • You can use a personal loan for a variety of purposes, including debt consolidation, home improvement and certain sudden expenses.

Who is an Avant personal loan good for?

According to Avant, most of their customers who receive loans have credit scores of 600 to 700. If you’re in that range and meet other important lender criteria, you may be a good candidate for an Avant personal loan. And if you need money for an emergency expense, a personal loan through Avant may make sense, since you may receive the funds within one business day if your loan has been approved.

An Avant personal loan also may be a good option if you’re searching for repayment options. Since Avant allows you to make payments via credit or debit card, personal check, a cashier’s check or money order, you don’t have to pay by automatic withdrawal if you don’t want to.

How to apply with Avant

If Avant services your state, you can visit Avant’s website to apply for a personal loan. You’ll begin by providing some basic information to view your loan options. Once you select your loan of choice, you’ll go through the official application process, which should take a few minutes if you’ve got all your information available.

The loan application will ask you for information such as your:

  • Full name and address
  • Date of birth
  • Email address and phone number
  • Housing costs
  • Social Security number
  • Desired loan amount
  • Intended use of the loan

Not sure Avant is right for you? Consider these alternatives.

If you’re not sure Avant is for you or don’t live in an eligible state, here are a couple of alternatives you might want to consider.

About the author: Anna Baluch is a freelance personal finance writer from Cleveland, Ohio. You can find her work on sites like The Balance, Freedom Debt Relief, LendingTree and RateGenius. Anna has an MBA… Read more.