Avant personal loan review: A loan worth a look for less-than-perfect credit

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In a Nutshell

If you have less-than-perfect credit and need quick cash, an Avant personal loan might be worth considering. But you may pay an administration fee, and the interest rate may be higher than some other lenders. 

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Pros Cons
Ability to qualify with fair credit High maximum APR
Prequalification application with soft credit check May charge upfront loan administration fee
Possible to have funds deposited in your bank account as soon as next business day Secured personal loan uses vehicle as collateral

What you need to know about an Avant personal loan

Avant is an online lender that offers unsecured and secured personal loans primarily for people with fair credit. Avant uses WebBank, a state-chartered, member FDIC bank, to originate these loans.

While the average Avant borrower has credit scores of 600 to 700, the lender says its loans “fit a wide variety of customers.”

You can use Avant personal loans for various purposes, including debt consolidation for credit cards, home improvements, emergency expenses and more. Our Avant personal loan review will cover what you should know before applying.

Secured personal loan uses your vehicle as collateral

If you want lower interest rates, you may opt to apply for a secured personal loan. But if your finances are shaky, you could be taking a big risk. Avant uses your vehicle as collateral — and if you can’t make your payments, you could lose your transportation.

While Avant’s secured loans may have longer repayment terms and lower interest rates than the average title loan, they aren’t any less financially risky.

Prequalify without hurting your credit scores

If you have lower credit scores, you may want to apply for prequalification without a ding to your credit. You can check rates for Avant’s unsecured and secured personal loans with a soft credit inquiry. But keep in mind that if you move forward with your application, Avant may perform a hard inquiry, which could lower your credit scores by a few points. And your final loan term and rates may change.

Possible fast funding

If you need fast cash, Avant may offer quick personal loan funding. If you’re approved on a weekday by 3 p.m. Central time, secured personal loan funds could land in your bank account by the following business day. For an unsecured personal loan, the approval deadline is weekdays at 4:30 p.m. Central time.

But keep in mind that depending on your bank, it may take longer to access your cash.

High maximum interest rates

While Avant’s interest rates may vary by state, you may not qualify for the most competitive rates depending on your credit. Avant personal loans have a high maximum APR, so you should compare other personal loan offers before making a decision.

Administrative and late payment fees

While Avant doesn’t charge a prepayment penalty for unsecured loans, you’ll need to watch for other fees. Avant may charge an administration fee of 4.75% for unsecured loans and 2.5% for secured loans.

You’ll also have to watch for late payment fees. If your loan payment is more than 10 days late, Avant will charge a late payment fee of $25 for an unsecured personal loan and $15 for a secured personal loan.

A closer look at an Avant personal loan

Here’s a breakdown of some of the key differences between Avant’s two personal loans.

  Avant unsecured personal loan Avant secured personal loan
Loan amounts $2,000–$35,000 $5,000–$25,000
Loan terms 24–60 months 24–48 months
Max administration fee 4.75% 2.5%
Late payment fee $25 after 10 days $15 after 10 days
Dishonored payment fee $15 $20
Prequalify with soft credit check Yes Yes
Possible next-day deposit Yes Yes

Who is an Avant personal loan good for?

Avant may be a good choice for people with fair credit who want to prequalify before applying and need money quickly. People who want flexible repayment terms for an unsecured personal loan may also like the ability to choose terms from 24 to 60 months. But if you’re only eligible for the high maximum APR, Avant may not be the best loan option, and you should explore other lenders.

Avant’s secured personal loan could be a risky move because it uses your vehicle as collateral, and if you can’t repay the loan, you could lose your vehicle. You should consider exhausting other lending options before choosing this route.

How to apply with Avant

Here’s how to apply for Avant’s unsecured and secured loans.

How to apply for an Avant unsecured personal loan

Avant offers the chance to prequalify online without a hard credit check, which means checking your rates won’t hurt your credit scores. You can check your rates by filling out a single page with the following details:

  • Full name
  • Address
  • Monthly housing cost
  • Date of birth
  • Contact information
  • Social Security number
  • Income information
  • Monthly net income
  • Loan purpose
  • Loan amount
  • Your credit range

If you prequalify, you can pick an Avant offer and apply within minutes. Your loan funds could arrive in your bank account as soon as the following business day via direct deposit if you get approved on Monday through Friday by 4:30 p.m. Central time. (Just keep in mind that your final approval may differ from your prequalification.)

How to apply for an Avant secured personal loan

Before applying for an Avant secured personal loan, you can see rates online with a soft credit check that won’t affect your credit scores. To prequalify, you’ll have to enter your loan amount, the loan purpose, and if you’re making payments on your car. Then, you’ll have to provide the following information:

  • Full name
  • Contact information
  • Date of birth
  • Social Security number
  • Address
  • Employment type
  • How often you get paid
  • Monthly net compensation
  • Monthly housing cost

Next, you’ll have to identify your vehicle and provide your mileage before you can check your rates.

If you prequalify, you’ll see Avant offers and may apply. You may get approved within minutes, but it could take longer if Avant needs additional documents. If you get approved Monday through Friday by 3 p.m. Central time, you may receive funds via direct deposit as soon as the next business day. (But exact timing will depend on your bank.)

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

  • Discover: Discover may be a good choice if you want a personal loan without an origination fee.
  • Upstart: A personal loan from Upstart might be a good fit if you want a lender that says it looks beyond your credit scores.

About the author: Kate Dore is a Nashville-based personal finance writer and Candidate for CERTIFIED FINANCIAL PLANNER<s… Read more.