Avant Personal Loans: 2023 Review

Avant is an online lending platform that offers personal loans to borrowers with fair and bad credit (689 or lower FICO score); the company says most of its customers have a credit score from 600 to 700. It charges origination and late fees, but its loans have annual percentage rates consistent with other bad-credit loans.

Avant is best for borrowers who:

• Have a credit score from 600 to 700 FICO.

• Want to apply for and manage a loan online.

• Need funds within a business day or two.

• Want to repay the loan over two to five years.

» COMPARE: See your bad-credit loan options

Avant at a glance

Where Avant stands out

Soft credit check to pre-qualify: You can see the potential loan amount and rate on an Avant loan if you pre-qualify. Pre-qualifying doesn’t affect your credit and doing so can help you understand how loan payments fit into your monthly budget. If you move forward with a loan application, the lender will do a hard credit pull, which can temporarily knock a few points off your score.

Next-day funding: Avant says it can deposit the funds from a personal loan into your account the day after your application is approved.

» MORE: Best personal loans for fast funding

Option to change your payment date: Avant customers can’t choose their payment date initially, but they can change it up to two times during their repayment term. Other lenders may let you choose your initial payment date or change it more often due to unexpected changes in your cash flow, like a new job with a different payday.

Mobile app: Avant has a mobile app where borrowers can make payments, adjust payment dates and see their payment history.

Where Avant falls short

Origination fee: Avant may charge an origination fee up to 4.75%, though it says the majority of borrowers receive an offer without the fee. Not all lenders charge an origination fee, but you may find even higher fees with other bad-credit lenders.

No co-signed, joint or secured loan option: Avant doesn’t allow borrowers to add a co-signer or co-borrower to their application, or to secure the loan with collateral. Some lenders allow applicants to add someone or apply for a secured loan to improve their chances of qualifying.

No direct payments to creditors: If you’re consolidating credit cards and other high-interest debts, Avant will deposit the funds directly into your account rather than pay the debts for you. Some of Avant’s competitors offer a direct pay feature, which simplifies the consolidation process.

» MORE: Best debt consolidation loans

What to know about Avant

In August 2020, Avant settled with the Colorado attorney general’s office after the state alleged that Avant partnered with out-of-state banks to offer rates above the state-mandated maximum. Avant CEO James Paris said in an emailed statement that the settlement will help protect Colorado borrowers from abusive, high-cost lenders.

In April 2019, Avant settled a Federal Trade Commission lawsuit alleging the company withdrew unauthorized payments from consumers’ bank accounts and collected additional money even after a loan had been paid off.

How to qualify for an Avant loan

Avant’s minimum borrower requirements include:

• Credit score: 550 (using FICO 8 and Vantage 3 scores).

• Monthly net income: $1,200, which can include alimony or other types of income.

• Debt-to-income ratio: 70%, including mortgage or rent payment.

• Monthly free cash flow: $500.

The average qualified Avant borrower has:

• Credit score: 644.

• Monthly net income: $4,000.

• Debt-to-income ratio: 30%, before the new loan.

• Monthly free cash flow: $2,800.

Loan example: A three-year, $10,000 loan with a 23.4% APR would have monthly payments of $389. You would pay $4,004 in total interest on that loan.