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Whether you need a few thousand dollars to cover the cost of an upcoming move or up to $ 35,000 to consolidate your credit card debt, sometimes a personal loan can be a handy tool.
While personal loans aren’t exactly free money, when you can get a low interest rate, they can help you get out of debt faster or pay for a large purchase at an affordable price over time.
If your credit score is in the fair or middle range, you may have a hard time finding a lender. This is when you need to be very careful with predatory loan companies that offer payday loans or securities lending who charge exorbitant interest rates and high fees for missing payments. Such lenders may not even check your credit score to make sure that you are a good candidate for borrowing in the first place, putting you in an impossible situation if you fail to make a payment.
With Avant, you can borrow $ 2,000 to $ 35,000 the next business day and pay interest ranging from 9.95% to 35.99% APR. These interest rates aren’t the lowest in the market, but the process is a bit more transparent and there’s an interest cap below 36% (compared to the exorbitant 500% interest rates that some lenders payday charge).
Ahead, Select reviews Avant personal loans, taking into account APR, benefits, fees, loan amounts and term. (Learn more about our methodology below.)
Annual percentage rate (APR)
Purpose of the loan
Debt consolidation, major expenses, emergency costs, home renovations
Up to $ 25 per late payment after a 10 day grace period
Avant’s APRs range from 9.95% to 35.99%, which is slightly above industry averages. At the time of writing, the average two-year personal loan interest rate is 9.58%, according to the Fed.
The lowest APRs are available to borrowers and co-borrowers with excellent credit. If you have an exceptional credit score, you should consider applying to more affordable lenders like LightStream Where Marcus by Goldman Sachs. In every loan application, factors such as credit score, income, loan amount, and loan term are all taken into account when determining your APR.
Find the best personal loans
Avant’s advantages lie in its accessibility and flexibility. Not all lenders will accept borrowers with a credit score of less than 600, but Avant will consider these applicants. If you are concerned that you may be eligible, the lender offers you the option of making a smooth credit check on its website, so you can see what rates and terms you qualify for.
There is no prepayment charge for Avant loans, which means you won’t be penalized for canceling your loan faster by paying a little more each month. And if you miss your payment due date, you have a 10-day grace period before you get charged a $ 25 late fee.
However, Avant charges some borrowers high origination fees of up to 4.75% of the total loan amount. If you borrow $ 20,000, you could see $ 950 being deducted from the loan amount deposited into your account.
Avant personal loans range from $ 2,000 to $ 35,000.
The terms vary from 24 to 60 months and depend on your request, the amount of the loan, the interest rate and the monthly payment.
Avant is a comparable option to other lenders that cater to borrowers with fair credit scores, such as OneMain Financial. If your credit is damaged, you probably won’t qualify for the best rates, but you can still find a loan that offers better interest rates than if you were to have a large balance on your credit card.
To determine which personal loans are the best, Select has analyzed dozens of US personal loans offered by online and traditional banks, including major credit unions, with fixed rate APRs and flexible loan amounts and terms to meet a range of financing needs. Where possible, we have chosen loans with no origination or enrollment fees, but we have also included options for borrowers with a lower credit rating on this list. Some of these options have origination fees.
When selecting and ranking the best personal loans, we focused on the following features:
- APR at fixed rate: Variable rates can fluctuate over the life of your loan. With a fixed rate APR, you lock in an interest rate for the life of the loan, which means your monthly payment will not vary, making it easier to plan your budget.
- Flexible minimum and maximum loan amounts / conditions: Each lender offers a variety of financing options that you can customize based on your monthly budget and the time you need to pay off your loan.
- No early repayment penalties: The lenders on our list do not charge borrowers for prepayment of loans.
- Simplified application process: We looked at whether lenders offer same-day approval decisions and a fast online application process.
- Customer service: Each loan on our list provides customer service available by phone, email or secure online messaging. We have also opted for lenders who have an online resource center or advice center to help educate you about the personal loan process and your finances.
- Disbursement of funds: The loans on our list provide funds quickly by wire transfer to your checking account or in the form of a paper check. Some lenders (which we have noted) offer the option of paying your creditors directly.
- Automatic payment discounts: We have noted lenders who reward you for signing up for automatic payment by lowering your APR from 0.25% to 0.5%.
- Creditors’ payment limits and loan amounts: The above lenders offer loans of various sizes, from $ 500 to $ 100,000. Each lender advertises their respective payment limits and loan amounts, and completing a pre-approval process can give you an idea of ââyour interest rate and monthly payment for such amount.
After reviewing the above features, we sorted our recommendations based on overall financing needs, debt consolidation and refinancing, small loans, and next day financing.
Note that the advertised rates and fee structures for personal loans are subject to fluctuation based on the Fed rate. However, once your loan agreement is accepted, a fixed rate APR will guarantee the interest rate and the monthly payment will remain constant for the duration of the loan. Your APR, monthly payment, and loan amount depend on your credit history and creditworthiness. To take out a loan, lenders will conduct a serious credit check and ask for a complete application, which might require proof of income, identity verification, proof of address, etc.
* The terms of your LightStream loan, including the APR, may differ depending on the purpose of the loan, the amount, the duration and your credit profile. Excellent credit is required to benefit from the lowest rates. The rate is shown with the AutoPay discount. AutoPay rebate is only available before the loan is funded. Rates without AutoPay are 0.50% higher. Subject to credit approval. Conditions and limitations apply. The advertised rates and conditions are subject to change without notice. Example Payment: Monthly loan payments of $ 10,000 at 3.99% APR with a three-year term would result in 36 monthly payments of $ 295.20.
Editor’s Note: An earlier version of this story stated that Avant offers secured personal loans in some states. It is not. This story has been updated to correct this error.
Editorial note: Any opinions, analysis, criticism or recommendations expressed in this article are the sole responsibility of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.