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Avant Review

Wednesday, June 23rd

2021 Bad Credit Loan Provider Reviews

Avant Review 3 Star Rating

Avant

3 Star Rating
  • Loan: From $2,000 to $35,000

Even though Avant has only been around since 2012, they've already funded more than $6.5 billion in loans. With headquarters in Chicago, this company seeks to provide access to funding, including bad credit loans, to "middle-income borrowers". So far, that represents more than 800,000 people who have been helped by loans through Avant.

Credit score and income

Avant doesn't specify a minimum credit score necessary to qualify for one of their loans, but they state that the majority of their clients have scores between 600-700, and we found several third-party sites that said you'll need a minimum score of 580 to be eligible. (For reference, Avant considers anything less than 580 as "poor".) To find out what loan options you have, you'll have to allow them to do a soft pull by entering your information, including your full Social Security number, monthly net income, and your current credit score. Expect to need at least $20,000 in gross annual income to qualify for a bad credit loan with Avant.

Administrative fee

What does Avant charge in fees? Most customers pay an administrative fee of up to 4.75%. APR's range from 9.95% to 35.99%, with loan terms from 24 to 60 months. You can borrow anywhere from $2,000 to $35,000, depending on your overall situation (for example, your income, whether you own or rent, and so on).

Best Bad Credit Loan Providers

Postpone payment rule

At first, we found only positive things to say about Avant. Over 10,000 independently-verified customer reviews, the company received nearly 9,500 4- or 5-star reviews. Borrowers said that they got their money very quickly, the process was simple, and that even with bad credit they were still able to get a loan. And, although we didn't find it referenced on the Avant site, we found customers referring to a "postpone payment rule" that's allowed once a year (which we encourage you to ask about if you decide to use this lender).

FTC settlement

But, since the time of our last review, the company's rating with the BBB dropped from an "A+" to an "A-" (while still maintaining accreditation). Unfortunately, in April 2019 Avant agreed to settle on charges made by the Federal Trade Commission regarding "deceptive and unfair loan servicing practices". Those charges included failing to credit loan repayments in a timely way, giving consumers incorrect information with respect to payoff amounts, and charging borrower's accounts multiple times in a month. (One customer had his monthly amount debited more than 10 times in one day!)

Mixed bag

For all of those reasons, Avant winds up in the middle of our rankings. We're glad to see so many customers who have had great experiences with this lender, especially those who might not qualify for a bad credit loan elsewhere. However, having charges brought by the FTC is no laughing matter. We hope that Avant continues to shore up their reputation moving forward.

If You Have Poor Credit, Where's the Best Place to Get a Bad Credit Loan?

With so much economic turmoil, there's never been a time where bad credit loans have been more in demand. No matter what caused your credit score to be below 600 - the typical threshold for a "bad" credit rating - you're far from alone.

Out of approximately 230 million Americans who qualify for a credit score, almost 70 million have poor credit. Some of the most common reasons for low credit scores are expected financial hardships (like job loss or medical expenses), not using credit responsibly, or simply being unaware of the factors that contribute to having a healthy credit history.

The Best Bad Credit Loan Providers Compare Bad Credit Loan Providers Compare Bad Credit Loan Provider Reviews What are the best Bad Credit Loan Providers Best Bad Credit Loan Provider Reviews

Bad Credit Loan Provider FAQ

You'll find that most bad credit loans come from smaller credit unions, banks, and other financial institutions. But, don't be surprised if you see some more familiar names too - like One Main and Capital One.
You're going to pay more in interest and fees than a customer with a great credit history. But, if you have consistent income and collateral (like a vehicle), you can get a loan that probably has a lower interest rate than what you're currently paying on your credit cards.
Remember those higher interest rates and fees? Simply put, your lender makes more money when they give you a loan, compared with other borrowers.
Not when you're just asking for a quote: this is usually done with a "soft pull" that verifies your identity and credit score. Once you get to the part of the process where you're submitting the actual application for your loan, that's where your credit score will be affected temporarily.
Most loans are completed start-to-finish online, with funds going directly to the bank account of your choice. However, if your loan requires collateral, expect to have an in-person appointment to present your car title or other documentation.
Bad credit loans are available in amounts ranging from $500 to $50,000. The amount you can actually borrow will depend on your income/employment, outstanding debts, and credit history.
How quickly can you complete your application? Most lenders will tell you to expect your funding to be deposited within a few days of acceptance, but there are a few who can get the money to you within one business day.
The risks of a bad credit loan are mostly in your control: don't get in over your head with a loan you can't afford, and use the funds responsibly instead of making unnecessary purchases! Most lenders offering bad credit loans have a good reputation; checking their rating with the BBB is a smart way to verify their trustworthiness before you sign on any dotted lines.
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Continued from above...

Unfortunately, getting a loan when you have bad credit can be a paradox: in order to qualify for the best loans, you need a good credit history. But, to establish a good credit history, you often need to have demonstrated that you are responsible with credit - by making on-time payments, not overutilizing the credit you've been extended, and so on. On the other hand, without a loan to pay off debts and handle current financial demands, you could find yourself even deeper in the hole as calls from collection agencies start coming in and the pressure mounts.

Does this sound familiar? If so, take a deep breath and recognize that there's hope - because there are providers out there who offer loans to people with bad credit. And no, you won't have to sign away your life to qualify, though you should be aware that the terms will probably not be as favorable as those offered to people with high credit scores. That's only fair, as the lenders are taking on more risk when they give money to people with a less-than-sterling track record.

How can you tell which lender to use for your bad credit loan? That's an excellent question to ask. After all, you want to be sure that any loan you accept is going to help you get back on your feet financially, with terms you can actually meet. Here are several criteria that can help you choose the right lending partner for your situation:

  • Reputation. With something as major as a loan, you want a provider that has already established itself as being trustworthy, reliable, and fair. What do other people say about their experiences borrowing from this lender? Has the company been rated by the BBB?
  • Transparency. Shady lenders hide everything in the fine print, like high interest rates and penalties for early repayment. You want to choose a lender that makes their terms as clear as possible before you sign on the dotted line. While the terms of your particular bad credit loan will probably be determined during your application process, the most transparent lenders will provide estimates of their fees and average APR, to give you an idea before you start providing your personal details.
  • Usability. Applying for a bad credit loan could be a little nerve-wracking, and a hard-to-use website doesn't make things easier. Choose a lender that makes it as simple and fast as possible to complete your application and receive your funds.

TopConsumerReviews.com has reviewed and ranked the best bad credit loan providers available today. We hope this information helps you to quickly get the money you need, with terms that are fair and affordable, so that you can get back on your feet financially!

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