Even if you don’t have a great credit score, you might need to borrow money. That’s where Avant comes in – helping people with low credit scores consolidate their debt. Borrowers from this company tend to have relatively low (average of 650) credit scores, make between forty and one hundred thousand dollars a year, and want a flexible way to pay off their debts while learning more about money management.
An Overview of Avant
Avant provides personal loans, but it’s important to look at their core business. About half the borrowers involved with the company take out their loans for debt consolidation. This makes sense, as the core group the company targets are average, middle-class borrowers who are looking to fix their credit situations and start to build up a better financial future.
If you’ve heard of Avant in the past, it’s probably because they are on of the major players in the low credit score lending market. While there’s competition in the form of OneMain Financial and Peerform, most low credit score loans do come through Avant. These companies all allow you to take a look at your credit score without hurting your credit and they all give you a chance to figure out whether the loan is a good idea before you commit. If you do commit, though, be aware that you’ll have to deal with a hard credit check.
Avant has, however, gone through a few major changes in the last few years. While the company formerly operated relatively fee-free, it began to charge its borrowers an origination fee in the summer of 2016. After the company bought ReadforZero, a debt management site, it also absorbed its business. That means that users of the old website no logner get access to the former company’s debt management tools and they can no longer user the free VantageScore score tool provided for users who want to check their credit scores.
Avant also tends to charge some significant interest rates, especially as compared to some of its competition. Interest on the loans start at just under ten percent, and can easily rise into the mid-thirties. This makes the loans expensive, but well within the norm when it comes to lending to those with bad credit.
How to apply
Avant has a very typical application process. You’ll need to go online, fill out an online application, and provide your basic information (name, address, social security number, etc). Avant will check your credit through TransUnion before it makes a decision, but it’s a soft credit check and you won’t see a hit on your credit score until you commit to the loan.
Those who are approved with get a chance to look at loan terms and figure out which terms actually work for their needs. Your credit score is going to play a huge role here, as the options you receive will be dependent on the credit profile Avant puts together. Before you receive your money, you’ll probably have to provide a few more documents and verify both your income and your identity. Expect it to take a few days to get the money once you’ve finalized the loan.
Requirements, Terms, and Fees
Avant is fairly generous with its credit score policy, taking borrowers with rates as low as 580 and an average score of 650. Most of the borrowers make over forty thousand dollars per year, but there’s no specific minimum income. You don’t need much of a credit history to borrow from this company, and there’s no specified debt to asset ratio for borrowers.
If you do qualify for a loan, the fees are fairly simple. You’ll pay an origination fee (.95% to 3.75%), as well as late fees and unsuccessful payments fees. Your APR is going to be on the high side, with an APR of 9.95% at best and up to thirty-six percent at worst. Minimum loans are for one thousand dollars, with a ceiling of thirty-five thousand dollars. Loan terms are between two and five years, and it will only take you around two days to get your money from the company.
Thoughts on Personal Loans
Consolidating your debt is a great idea, but getting a personal loan isn’t your only option. If you are on the upper end of the scale for Avant, you should be able to get a good rate on a credit card. If you own a home, you might be able to get a good personal line of credit.
If you do apply, make sure you go in with all the necessary information. Your credit score and your income is going to inform most of your choices. Don’t accept a high-interest loan if you can get something better. Look at all of your options before you make any kind of borrowing choice – you might be surprised by what you can save.