Avant LLC (previously AvantCredit) is a multi-purpose loan and credit card company based in Chicago, Illinois. The lender is not like other mortgage or refinance companies on the market as they primarily focus on servicing borderline borrowers, i.e., people who are unlikely to qualify for traditional loans.
Avant loan refinance doesn’t work for home loans but is rather used to consolidate credit card debt and similar personal loans. A major drawback of working with Avant is the expense factor. The logic often applied is—because you’re in a bad situation, you should pay a high interest rate. Is there a better solution? Luckily, yes.
In this article, we will help you explore your options at Avant and also discuss:
- When to use an Avant loan
- How to refinance an Avant loan
- What other cost-efficient borrowing alternatives to consider
Avant Loans—Products Available
The loan products listed on Avant’s website are unsecured personal loans, i.e., loans offered without any collateral as a guarantee. You can get a loan for three situations:
- Debt consolidation—If you want to get rid of a high-interest-rate debt, you can refinance it with an Avant personal loan. It’s a popular non-mortgage refinancing option because of the sky-high credit card debt and delinquency rates on the market
- Home improvement—Getting a renovation or construction loan from banks and other traditional lenders can be a time-consuming and tedious process. Avant loans can help you with property rehab or low-intensity home upgrades quickly
- Emergencies—Avant also considers emergencies like medical bills and vehicle repairs valid reasons for approving a personal loan
Keep in mind that Avant does not finance college funds—you have to go to lenders like SoFi or Ascent for that. Your loan application will also be rejected if the company considers your intent to be unsuitable or illegal.
In case you’re looking for mortgage refinancing, you can go for options like Rocket Mortgage, Caliber Home Loans, and loanDepot. That being said, Avant remains a viable option for securing funds to facilitate:
- Property rehabilitation
- Upgrades and additions to an existing home
- Minor construction work
Avant Loan—Terms for Home Improvement Financing
Avant loans are short-term and carry high interest rates. The following table outlines the various aspects of their personal loans (including home improvement loans):
| Parameter | Avant |
| Minimum credit score | 550—according to Avant, ideal applicants should have credit scores between 600 and 700 |
| Maximum debt-to-income (DTI) ratio | 70% |
| Minimum monthly income | $1,200 |
| Loan amount (range) | $2,000 to $35,000 |
| Tenure | 12–60 months |
| Interest rates | 9.95%–35.95% (the poorer your financial health, the more you pay) |
| Repayment terms | Equated monthly installments |
| Approval time | 2–3 business days |
| Fees | • Origination fee—up to 4.75% • Returned payment fee—$15 • Late fee—$25 |
| Availability | All U.S. states except: • Hawaii • Iowa • New York • Maine • Vermont • West Virginia |
Know that Avant has a single loan product regardless of your borrowing intent. You alone have to meet the qualification requirements as the company does not service joint or co-signed loan applications.
Source: bruce mars
Avant Personal Loan for Home Improvement—Application and Processing
You can apply for Avant loans online. Here’s what the process looks like:
- Access Avant’s personal loan application page
- Fill out the fields with your personal information, address, and income details
- Set up your password (you cannot apply for a loan without creating an account)
- Select your loan intent from the drown-down menu
- Check the terms and conditions and submit
Avant officers will review your application, and if you qualify, you’ll get a pre-approval confirmation. You will then have to undergo the formal screening process. Some documents you’ll need to submit include:
- Identification proof
- Pay stubs
- Bank account statements
- Tax returns
- Employment verification letter
Being a non-conforming lender, Avant’s funding timeline is fairly quick. Qualified applicants usually get funds in their account within a week of approval.
When To Get an Avant Loan
Avant is a reputable company, having funded over $6.5 billion in loans to date. They have decent reviews from customers who got funded during emergencies or when no other lenders entertained their poor credit scores. That being said, Avant loans are not always a favorable option—e.g., when you:
- Have a good credit score—Avant loans are not cheap. If you have a decent credit score (620 and up), it makes more sense to go to a bank for a personal loan. Banks’ interest rates are significantly lower than what Avant charges
- Can qualify for asset-based loans—Personal loans are expensive because there’s no collateral to guarantee the investment recovery for the lender. In case you have an asset you can leverage, such as home equity, jewelry, or vehicle, you can get much lower interest rates if you go for secured asset-based loans, such as hard money loans or car title loans
- Want light paperwork—Personal lenders take a deep dive into your finances to assess the risk of approving the funds. You have to submit a lot of documents and may even have to endure a hard credit pull, which will further bring down your credit score. Getting a hard money loan is a faster and more efficient option for those who qualify
All in all, Avant loans only make sense when you run out of options. As far as negative reviews are concerned, many Avant customers were left dissatisfied due to the high origination fees and application rejection despite the pre-approval.
How Can You Refinance an Avant Personal Loan?
If you’re stuck with an Avant loan and are struggling to keep up with the payments, you may want to refinance with a more manageable solution. You have three options:
- Get another Avant loan—If you want to borrow more money, Avant may consider lending you the extra sum and lowering your interest rate. Note that the company won’t refinance your loan more than twice
- Refinance with a hard money loan—A hard money loan is a short-term loan secured by a hard asset like a residential property, land, precious metals, and vehicles. Hard money lenders do not give much value to your soft assets, such as income and credit score, so the paperwork is light. These loans have an interest rate between 8% and 20%, making them cheaper compared to personal loans
- Talk to a mortgage lender—If you’re handling renovation work on a home with an existing mortgage, you can consider getting a cash-out refinance with your current or another lender. You can get lower interest rates on the entire refinance, but you need to have good credit to qualify
Source: Daniel Thomas
Hard Money Loans vs. Personal Loans for Refinance
If you’re considering a refinance, hard money loans have many advantages against personal loans. Refinancing with a hard money loan is the best way to get rid of an inconvenient Avant loan, provided you have quality collateral. Here are the benefits you can expect:
- Short funding timeframe—Similar to Avant loans, hard money loans are also non-conforming, so you can access the funds in days rather than months
- No rigid credit check—Hard money lenders work with people regardless of their credit health because the collateral already guarantees the loan
- Creative and flexible lenders—The hard money industry is competitive in every state. Most lenders are willing to assist borrowers with creative financing solutions. You’ll also find minimal restrictions concerning joint applications or loan modifications
- Relatively inexpensive—Both hard money loans and personal loans are expensive compared to traditional lending rates, but the former is definitely more affordable. Hard money lenders also tend to have a less complicated fee structure than personal loan lenders
Back in 2021, Avant had to pay off a $1.6 million settlement due to abusive debt collection practices. Because of the absence of collateral, it’s common for lenders dealing in personal loans to resort to harsh measures to collect the debt—but that’s rarely the case with hard money lenders. They are professionals operating within state guidelines to support your funding situation—all you have to do is find one that’s the best for you.
Need Emergency Funds? Hard Money Loan Solutions Offers a Stress-Free Way Out!
If you’re in a bad financial situation, committing to predatory interest rates could only make it worse. Lenders like Hard Money Loan Solutions (HMLS) are always available to offer you competitive asset-based interest rates with an efficient and lenient approach. HMLS is a Florida-based lending group that strictly offers hard money loans (no personal or long-term loans).
Most hard money lenders only work with real estate as collateral—but not HMLS. The group can finance you as long as you secure the loan with a healthy asset, such as:
- Residential unit
- Commercial or rental property
- Land
- Precious gems and metals
- Original work of art with a determinable market value
You need to have a sufficient equity share in the property to qualify for a hard money loan, but you can also leverage more than one property to cover your needs.
Source: Kampus Production
HMLS will offer you a loan-to-value (LTV) ratio of up to 70%—e.g., if your property is worth $100,000, you can borrow about $70,000. You’ll get a lower interest if you opt for LTVs below 70%.
HMLS offers various loan packages to suit different intents—you can go for:
- Home improvement or rehab loans
- Bridge loans
- Asset purchase loans
- Business or startup loans
- Foreclosure or short sale management
- Investment property loans
- Construction loans
- Fix and flip loans
- Refinance and cash-out refinance loans
HMLS lenders are veteran entrepreneurs and investors who can help you navigate tight borrowing scenarios—apply for a loan today to get a free consultancy.
HMLS Loans Lending Terms
HMLS is committed to providing funds based on your collateral—not your financial position. Qualified applicants get customized loan packages that suit their repayment capacity. The following table is a sample of what your HMLS loan can look like:
| Core Terms | HMLS |
| Loan principal | $100,000–$50,000,000 |
| Tenure | 1–3 years |
| Interest rates | 9.99%–12% |
| LTV ratio | Up to 70% of the appraised value or the latest purchase price of the property (whichever is lower) |
| Interest rate type | Fixed |
| Monthly payments | Interest only (no amortization) |
| Minimum credit score or income | Not required |
| Origination fee | 2 points or 2% |
| Closing time | 3 days to 2 weeks |
| Down payment | Not required |
| Prepayment penalty | No penalty after six months |
As you can see, HMLS interest rates and origination fees are much lower than what you have to lay out for personal loans, so it’s a great choice for debt consolidation. Another upside is that there are no upfront, inspection, processing, underwriting, or digital retention fees. These junk fees can add up to around $8,500, so HMLS would be saving you a lot of money from the start.
The group has a 5-star service rating on Google.
Source: Google Reviews
HMLS follows a transparent, paperwork-light lending process, but every application is screened carefully before approval. Once approved, you’re guaranteed to receive the funds.
HMLS—Application Process and Loan Modification Terms
HMLS has a straightforward online application process. You don’t need documents like a Social Security number or income proof to apply—here’s what you need to do:
- Visit the Get Approved Today page
- Enter your basic personal info
- Provide details about the collateral
- Specify the loan amount
- Add any comments specific to your situation (optional) and submit
The HMLS team is prompt with responses. A lender will quickly review your application and call you to discuss the particulars of the loan. They typically appraise the property before approving. All terms and rates are clear from the start, so you can make an informed decision on whether you want to proceed with the loan.
HMLS facilitates client-friendly behavior and maintains long-term professional relationships with borrowers. The lenders are always available for one-on-one guidance and can even modify loan terms down the line, provided you reach out to them with a viable repayment strategy.
Keep in mind that foreclosure is the biggest risk associated with any asset-secured loan, so make sure to have a solid repayment plan before you commit.
Featured image source: Karolina Grabowska
