Is Avant Legit for Fair-Credit Borrowers?

Avant targets borrowers with fair credit who struggle to get approved by traditional banks—but is Avant legit? The company says it makes borrowing accessible for people with credit scores between 580 and 700. Avant doesn’t require excellent credit and approves borrowers that mainstream lenders reject.

The cost is high. APRs reach 35.99%, and administration fees go up to 9.99%. Fair-credit borrowers often get rates above 25% even though they’re not subprime. A $7,000 loan at 30% APR costs thousands in interest over the repayment term. Administration fees reduce the amount you receive, but you still repay the full loan amount plus interest on that full amount.

This review explains what Avant is, whether it’s legitimate for fair credit borrowers, what their loans really cost, and who they serve. Then it covers better alternatives that don’t charge 35.99% APR.

What is Avant and How Does it Work?

Avant was founded in 2012 and focuses on the fair credit market. The company provides personal loans to borrowers with credit scores from 580 to 700 who don’t qualify for prime rates at traditional banks. Avant operates online with no physical branches, and funding is approved and disbursed quickly.

Avant offers personal loans from $2,000 to $35,000. The APR range is 9.95% to 35.99%, depending on your credit score and income. Fair credit borrowers typically get rates between 20% and 35.99%. Loan terms range from two to five years. Administration fees up to 9.99% are deducted from the loan amount before you receive funds.

The minimum credit score is 580, but most approved borrowers have scores between 600 and 700. Avant looks at your income, employment history, and debt-to-income ratio when making lending decisions. The company reports payments to all three credit bureaus, so making on-time payments can help improve your credit over time. Funding happens one business day after approval in most cases.

Is Avant Legit?

Avant is a legitimate company that’s been operating since 2012. The company is accredited by the Better Business Bureau and handles everything from marketing to loan servicing to collections. In states where they hold licenses, Avant operates lawfully and offers genuine personal loans to borrowers with fair credit.

Legal doesn’t mean cheap. Avant settled with the FTC in 2019 for $3.85 million over deceptive practices. The FTC alleged that Avant charged consumers unauthorized fees, mishandled payments, charged duplicate payments, and made it difficult to pay off loans early. The settlement required Avant to return money to harmed consumers and stop the alleged practices.

Consumer reviews are mixed. Some borrowers praise Avant for approving their applications when other lenders rejected them. Many complaints focus on the high APRs and administration fees, making loans expensive. Others mention customer service issues when trying to resolve payment problems or get accurate payoff quotes.

Avant is legitimate in that it’s a real company operating legally. But the high APRs for fair credit borrowers and past regulatory issues raise concerns about whether it’s the best option for people trying to improve their financial situation.

Avant Costs And Fees

Avant’s APR range is 9.95% to 35.99%. Fair credit borrowers with scores between 600 and 700 typically get rates between 20% and 35.99%. Borrowers at the higher end of fair credit might qualify for rates closer to 18% to 25%, while those at the lower end pay rates above 30%. Your income and debt-to-income ratio also affect the rate you receive.

Administration fees up to 9.99% are deducted from the loan amount before funding. These fees work like origination fees at other lenders. The fee is based on your credit score and income. If you borrow $5,000 with a 9.99% administration fee, you receive $4,500.50, but you repay the full $5,000 plus interest calculated on that full amount.

Here’s what the real cost looks like. If you borrow $7,000 at 28% APR over three years with a 9.99% administration fee, you receive about $6,301 after the fee. You’ll pay approximately $4,367 in interest over three years. Your total repayment is $11,367 for receiving $6,301. Your monthly payment would be around $316. Late fees are $25, and insufficient funds fees are $15 if payments are returned for insufficient funds.

Those numbers show why Avant loans are expensive, even for fair-credit borrowers. You’re paying high interest rates plus an upfront fee that reduces what you receive. Fair-credit borrowers deserve better options than paying nearly 30% APR.

Who Avant Accepts

Avant accepts borrowers with fair credit, typically with scores between 580 and 700. Most approved borrowers have scores between 600 and 700, according to the company. People with credit scores in this range usually have some late payments, high credit utilization, or limited credit history, but no recent bankruptcies or major derogatory marks.

To get approved by Avant, you need a steady income and a checking or savings account at a bank or credit union. Before verifying your employment, we examine your debt-to-income ratio. The company wants to see that you can afford the monthly payment. You must be American. You must be a citizen or permanent resident and at least 18 years old.

The approval process is quick. You can check your rate online without affecting your credit score. Avant uses a soft credit check for the initial rate quote. If you decide to apply, Avant will run a hard credit inquiry, which can affect your credit score. Funding occurs within 1 business day of approval in most cases.

Pros of Avant

Avant offers some advantages for fair-credit borrowers. The company accepts credit scores as low as 580, making it accessible to people who don’t qualify with traditional banks. Funding is quick, at one business day after approval. You can check your rate with a soft credit check before applying, which doesn’t hurt your credit score. Loan amounts go up to $35,000, which is enough for debt consolidation or larger expenses. Avant offers a mobile app to manage your loan and make payments. Customer service is available seven days a week. Repayment terms range from 2 to 5 years, so you can choose a term that fits your budget.

Cons and Limitations

The disadvantages of Avant are significant. APRs up to 35.99% are expensive for fair credit borrowers who should qualify for better rates. Administration fees up to 9.99% reduce the amount you receive, but you still repay the full loan amount plus interest. The combination of high APR and administration fees makes these loans much more expensive than options from credit unions or other lenders.

Avant settled with the FTC in 2019 for $3.85 million over deceptive practices, including unauthorized charges and mishandled payments. The maximum loan amount is $35,000, which is lower than some competitors. Avant doesn’t offer rate discounts for automatic payments, unlike many lenders. No co-signed, joint, or secured loan options are available. The company doesn’t pay creditors directly for debt consolidation, which means you handle paying off old debts yourself.

Who Should Use Avant

Avant works best for fair-credit borrowers with scores between 600 and 700 who need fast funding and can’t get approved by credit unions or other lower-cost lenders. If you have fair credit and need to consolidate debt or cover an expense, you should first try credit unions, community banks, and other online lenders before applying to Avant.

Avant is not ideal for borrowers with good credit scores above 700. Those borrowers qualify for much better rates elsewhere. Avant is also not the best choice for borrowers with inadequate credit below 580 because the high APRs trap people in debt. If you have inadequate credit, you should explore cash advance apps like Beem before taking on a high-interest loan.

Real User Experiences

Reviews on consumer sites show mixed experiences with Avant. Borrowers who received approval when other lenders rejected them typically provide the most common positive feedback. These borrowers appreciate the rapid funding and simple online application. Some mention that making on-time payments helped improve their credit scores over time.

Negative reviews focus on several issues. Many borrowers complain that the APRs and administration fees make loans extremely expensive. Some borrowers reported a single late payment to the credit bureaus, resulting in a drop in their credit scores. Customer service complaints include difficulty getting accurate payoff quotes and problems resolving payment issues.

Some reviews mention unauthorized charges or duplicate payments, which aligns with the FTC settlement from 2019. Other borrowers report that Avant delayed processing their payments and then charged late fees. The Better Business Bureau lists hundreds of complaints, many related to payment processing and customer service.

Also Read: How Do Personal Loans Work?

Avant vs Better Alternatives

Credit unions are usually the best alternative to Avant for fair credit borrowers. Many credit unions offer personal loans with APRs of 8% to 18% to members with fair credit. Credit union payday alternative loans cap APRs at 28%, which is lower than Avant’s typical rates for fair credit borrowers. You need to become a member, but many credit unions have easy membership requirements.

Online lenders like Upstart, LendingPoint, and Achieve also serve fair credit borrowers with competitive rates. These lenders often charge 15% to 25% APR for fair credit, which is better than Avant’s typical rates. Some offer features like direct creditor payments for debt consolidation. Community banks sometimes offer personal loans to fair credit borrowers with existing banking relationships.

For smaller amounts under $1,000, cash advance apps provide better options than taking on a high-interest personal loan. These apps offer short-term help without the long repayment terms and interest charges that come with personal loans.

What Beem Is And Where It Fits

Beem is a money app for people in the United States who need cash help without taking on high-interest personal loans. You can learn more at https://trybeem.com. Beem is a suitable option for fair-credit borrowers who need short-term help without paying 35.99% APR for years.

Avant charges APRs up to 35.99% plus administration fees up to 9.99%. A $5,000 Avant loan can cost thousands in interest over three to five years. Beem offers Everdraft™ cash advances up to $1,000 with no interest charges. For many fair-credit borrowers who need a few hundred dollars to cover an expense or avoid overdraft fees, Beem provides that help without the debt burden.

Beem also includes a Subscription Monitor that identifies recurring charges that drain your account. Those forgotten subscriptions can cost $20 to $50 per month. Canceling them frees up cash immediately without borrowing. Beem helps you address cash flow issues rather than layering on expensive debt.

Why Choose Beem Over Avant

The difference between Avant and Beem comes down to cost and purpose. Avant charges APRs up to 35.99% plus administration fees up to 9.99%. Beem charges no interest on Everdraft™ advances. That difference amounts to thousands of dollars over the repayment term.

A $5,000 Avant loan at 28% APR over three years costs about $3,486 in interest. Add a 9.99% administration fee, and you pay nearly $4,000 extra to borrow $5,000. A $1,000 Beem advance costs zero interest. You repay $1,000 from your next paycheck with no long-term debt.

Avant locks you into monthly payments for two to five years. Beem advances are repaid quickly from your next paycheck. Avant doesn’t help you resolve the problems that led you to borrow. Beem includes tools to find subscription leaks and manage your money better. For fair-credit borrowers who need short-term help, Beem provides a path forward without high-interest debt.

Also Read: $5000 Personal Loan: How To Get $5000 Instantly?

When Avant Might Make Sense

Avant might make sense in limited scenarios. If you have fair credit and need to consolidate high-interest credit card debt at rates above 35%, an Avant loan could lower your overall interest rate. You would need to get approved at Avant’s lower APR range, ideally below 20%, for this arrangement to make financial sense.

If you need a larger loan amount above $5,000 and can’t qualify at credit unions or other lenders, Avant provides access to funds that might not be available elsewhere. You should only consider Avant after trying credit unions, community banks, and other online lenders first. Even then, you should borrow the minimum amount needed and make extra payments to pay off the loan as quickly as possible to minimize interest charges.

Final Verdict

Since 2012, Avant, a legitimate company, has been serving fair credit borrowers who find it difficult to secure approval elsewhere. The company provides real personal loans with rapid funding and flexible terms. Avant is accredited by the Better Business Bureau and operates legally in states where it’s licensed.

Avant is expensive for fair-credit borrowers. APRs up to 35.99% plus administration fees up to 9.99% make these loans cost thousands more than alternatives from credit unions or other lenders. The 2019 FTC settlement over deceptive practices raises concerns about past business practices, even though the company now operates legally.

Fair credit borrowers should explore credit unions, community banks, and other online lenders before applying to Avant. For smaller amounts under $1,000, cash advance apps like Beem provide better options without high-interest debt. Avant should be considered only after other alternatives have been exhausted.

FAQs About Is Avant Legit