Low Credit Score Requirements but High APRs
Avant, an online loan provider founded in 2012, has a mission to reduce borrowing costs for ordinary people. It does this by using data to simplify the process of borrowing online. Through their partner WebBank, Avant has funded loans totaling over $6.5 billion for 1.5 million borrowers. Avant is responsible for servicing the loans.
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Avant allows you to quickly and easily check your rate online, without having to impact your credit score. Avant has a mobile app that allows you to manage your loan and pay. Because the company has low credit requirements, it is accessible to people with less than stellar credit. Avant’s loan APRs can be higher than other personal loan lenders. Additionally, Avant charges late fees and administration fees that other lenders may not.
How to Get a Personal Loan
Although personal loans are a fast way to get cash when you need it most, it is important to make wise decisions about how to use them. You should think about whether a personal loan is necessary before you agree to a repayment plan. To find the lowest personal loan interest rate, do your research.
Rates are dependent on your credit score, income, loan value, terms, and other factors. You may be able to pre-qualify for loans or get a rate check with a soft credit inquiry. This won’t impact your credit score. Some lenders might require you to complete a hard credit inquiry. This could cause your credit score to drop a few points. All lenders require that you complete a hard credit inquiry before you apply for a loan. Check to see if there are any fees (prepayment penalties, origination fees or late fees) that could increase the cost of your loan.
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Alternatives to Personal Loans
A personal loan can be a good option to help pay large expenses. However, it is not the only option. Personal loans can be used in lieu of a personal loan.
A balance transfer credit card. Some credit cards offer introductory rates of 0% APR for a certain time period, typically 15-18 months. One strategy to consolidate your debt is to transfer all of your existing debt onto one card. You can pay off the balance in full before the introductory period ends and you will not be charged interest. You should have a plan for paying off your balance by the end of the introductory period if you are using a balance transfer creditcard. Otherwise, you could be subject to high credit card APRs. You should also be aware that balance transfer credit cards are usually only available to people with excellent credit.
How do you Qualify for an Avant Personal loan?
Avant does not list any minimum credit score requirements, but most customers who are approved for loans have credit scores between 600 and 700. Avant PR representatives confirmed that 580 is the minimum FICO score required, but the company offers products for customers with credit scores between 500 and 700.
Avant requires that you have a minimum monthly income of $1200. Although there are no job requirements, self-employed individuals may need to provide additional documentation. Avant loans are personal loans and cannot be used for business purposes.
Who should get an Avant loan?
Avant loans come with a high APR and fees. However, there are three major advantages to Avant loans: low credit requirements, fast funding, and the ability to check your rate without any hard credit inquiries.
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Experian says Avant’s minimum credit score requirement is 580. This is the lowest in the “fair” range. However, the company might also offer products to people with low credit scores of 500 or less. This is solidly within the “poor credit score” range. Avant may be able to help you if your credit score prevents you from being approved for loans with other lenders. Avant loans are risk-free because you can check your rate online, without having your credit score affected by a hard credit inquiry. Be aware that although Avant’s minimum credit score requirements for Avant loans are very low, having lower credit scores will likely result in a higher interest rate.
How to apply for an Avant personal loan?
You need to determine if a personal loans is right for you. You might be able to pre-qualify for a lower interest rate with a balance transfer card, or the expense could wait. You’ll need to decide how much money you want to borrow if a personal loan is right for you.
These steps will help you get a personal loan
Online rate checking. Avant’s pre-screen application allows you to check your rate online and receive a loan offer. Avant will not initiate a hard credit inquiry until you have provided some personal information such as your income, address, and social security numbers. You can also check your rate online without having to affect your credit score.
Complete the application and attach any supporting documentation. You will need to complete an official application if you are interested in applying for an Avant loan. This will involve a hard credit inquiry which could lower your credit score. You may need additional documentation, such as bank statements and pay slips, depending on what information you have provided in your application. Avant will contact you directly if you require any additional documentation. Additional documentation can be submitted online, via email, or by facsimile.