Avant review: Personal loans for people with low credit scores, but you’ll pay a high interest rate

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective. Terms apply to offers listed on this page. Read our editorial standards.

• Avant offers personal loans for emergency expenses, car repairs, vacations, and more.
• Avant loan amounts range from $2,000 to $35,000, but exact limits vary by state.
• You have a good chance of qualifying for an Avant personal loan with a credit score of 600. 
• See Insider’s picks for the best personal loans »

Table of Contents: Masthead Sticky

Loan amounts and interest rates

Avant loan amounts range from $2,000 to $35,000. The minimum amount you’re required to borrow varies by state. Avant offers loans to all 50 states and Washington, DC. 

Depending on your credit score and annual income, your APR will range from Avant Personal Loans, which is higher than some other major competitors’ APR ranges. For example, Best Egg’s range is Best Egg, and Marcus by Goldman Sachs’ is Marcus Personal Loan.

Pros and cons

How Avant works

Avant provides personal loans through WebBank (Member FDIC), a state-chartered industrial bank. Avant offers both secured and unsecured personal loans, but we’re focusing on the company’s unsecured personal loan options. Unsecured loans are more common with Avant and with competing lenders.

An unsecured personal loan doesn’t require any collateral, such as a house or car. These personal loans can be used for a variety of purposes.

The minimum loan term is 24 months, and the maximum term is 60 months. You can pay off Avant loans in full at any time without incurring an early payment penalty.

You’ll need to meet the following requirements to apply:

• You must be over the age of 18 (19 if you live in Alabama)
• You must have a personal bank or credit union account (prepaid card accounts aren’t eligible)
• You must be able to provide documents to verify your income, identity, and other information as requested

After you’ve verified your information, the funds will be delivered to your bank account as requested, usually by the next business day. 

If Avant offers you a loan with a high interest rate, you may want to look into credit cards for people with bad credit and compare rates between a card and a loan — you might be eligible for a lower APR and better terms with a credit card. Weighing the pros and cons of your decision will help you get the best financial deal possible. 

If your loan is approved by Avant by 4:30 p.m. CT Monday through Friday, funds are generally deposited by the next business day, per the company’s website. To reach Avant, use their customer service email address or phone Monday through Friday, 7:00 a.m. to 10:00 p.m. CT, or weekends from 7:00 a.m. to 8:00 p.m. CT.

Avant also has a mobile app with a smooth, well-designed interface. The app has 4.5 out of 5 stars in the Apple store, and 3.8 out of 5 stars in the Google Play store. 

What credit score do you need?

To qualify for a personal loan, Avant states on its website that most customers have a credit score between 600 and 700. However, your credit score isn’t the entire factor in your loan approval, so you may still consider applying with a lower score. Here’s how scores break down, according to FICO: 

• Very poor: 300 to 579
• Fair: 580 to 669
• Good: 670 to 739 
• Very good: 740 to 799 
• Exceptional: 800 to 850

You can find your credit report for free on annualcreditreport.com from any of the three major credit bureaus weekly through April 20, 2022. While this report won’t give you your credit score, it will show you information about your credit and payment history, which lenders use to decide whether to give you a loan. Reviewing your credit report can help you know what you need to improve. 

You can find your score at no cost on your credit card statement or online account. You can also pay for it from a credit reporting agency. 

Your credit score will not be impacted if you check your loan rates with Avant, because the company only generates a soft credit inquiry. Avant will perform a hard credit inquiry once you continue with the loan application, which will likely affect your credit score. A hard inquiry gives a lender a comprehensive view of your credit history, but may negatively affect your score.

Avant may be a good choice for you if you have a lower credit score, because Avant has more lenient credit score requirements than other personal loan companies. Keep in mind that the lower your credit score, the higher your APR could be — and Avant rates go up to 35.99%. 

Is Avant trustworthy?

Avant is a Better Business Bureau-accredited company, and the BBB gives Avant an A in trustworthiness. The BBB assesses trustworthiness by evaluating a business’ responses to consumer complaints, truthfulness in advertising, and transparency about business practices. 

However, good BBB scores don’t guarantee you will have a good relationship with companies. They’re merely a guideline to help you get started on your hunt for a personal loan provider. 

Avant does have a recent controversy. In 2019, the company settled a case with the Federal Trade Commission where it was found liable for putting unauthorized charges on customers’ credit card, and for illegally requiring customers to agree to automatic payments from their bank accounts when taking out a loan. 

Due to Avant’s recent history, you may decide you’re more comfortable using a different personal loan company.

How Avant compares

Although rates are specific to borrowers, Avant interest rates are higher than those offered by other big-name lenders. Here’s how Avant compares to the competition.

Min. credit score 600	Min. credit score Unspecified	Min. credit score 640
APR Avant Personal Loans	APR Marcus Personal Loan	APR Personal Loans
Origination fee? No*	Origination fee? No	Origination fee? Yes
Avant Personal Loans	Apply for a loan	Best Egg

*While Avant does not charge an origination fee, it does charge an administration fee of up to 4.75%.

Avant charges an administration fee of up to 4.75%, which will be subtracted from your loan proceeds when it’s funded. You’ll also pay a fee if you miss a scheduled payment or if a scheduled payment is returned unpaid.

You won’t pay any fees with Marcus, including late fees. Rather, you’ll rack up more interest if you don’t pay on time, and your final payment will be bigger.

With Marcus, you’ll receive a 0.25% discount on your loan by signing up for AutoPay; Avant does not offer this perk. 

While Marcus has no official minimum credit score requirement, the company recommends a minimum credit score of 660 in an informational post on its website. This suggestion is higher than Avant’s loose guidelines by a significant margin. If your credit score is below 660, Avant is likely the better option. That said, the lower your credit score, the higher an APR you will probably pay. 

You’ll pay a late fee with both Avant and Best Egg — Avant’s late fee depends on which state you live in, while Best Egg’s late fee is $15. Both have additional fees baked into the cost of the loan. Avant charges an administration fee of up to 4.75% of your loan amount, while Best Egg’s has an origination fee ranging from 0.99% to 5.99%.

You’ll receive your funds roughly in the same amount of time with both companies. Avant claims most customers will receive their funds the next business day, and Best Egg says the majority of customers will get their money within one to three business days.

Related Content Module: More on Loans