Whether you need a few thousand dollars to cover the cost of an upcoming move or up to $35,000 to consolidate credit card debt, a personal loan can sometimes serve as a handy tool.
While personal loans aren't exactly free money, when you can score a low interest rate, they can help you get out of debt faster or pay for a large purchase affordably over time.
The best personal loans can offer low APRs. But usually, you need a good to excellent credit score to qualify for lower rates.
Compare personal loans
If your credit score is in the fair or average range, you might struggle to find a lender. That's when you need to be extra careful of predatory lending companies offering payday loans or title loans that charge sky-high interest rates and steep fees for missing payments. Such lenders may not even check your credit score to make sure you're a good candidate to borrow in the first place, putting you in an impossible spot if you fail to make a payment.
With Avant, you can borrow $2,000 to $35,000 as soon as the next business day and pay interest ranging from 9.95% to 35.99% APR. These interest rates aren't the lowest out there, but the process is a little more transparent, and there's an interest cap below 36% (compared to the exorbitant 500% interest rates that some payday lenders charge).
Ahead, Select reviews Avant personal loans, taking into consideration APR, perks, fees, loan amounts and term lengths. (Read more about our methodology below.)
Avant personal loan review
Avant Personal Loans
Annual Percentage Rate (APR)
9.95% to 35.99%
Loan purpose
Debt consolidation, major expenses, emergency costs, home improvements
Loan amounts
$2,000 to $35,000
Terms
24 to 60 months
Credit needed
Poor/Fair
Origination fee
Administration fee up to 9.99%
Early payoff penalty
None
Late fee
Up to $25 per late payment after 10-day grace period
Terms apply.
Click here to see if you prequalify for a personal loan offer.
APR
Avant's APRs range from 9.95% to 35.99%, which is slightly higher than 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 a stellar credit score, you should consider applying through more affordable lenders like LightStream or Happy Money. In every loan application, factors like credit score, income, loan amount and loan term are all considered when determining your APR.
Find the best personal loans
Perks
Avant's perks lie in its accessibility and flexibility. Not all lenders will accept borrowers with credit scores lower than 600, but Avant will consider such applicants. If you're worried about qualifying, the lender provides an option to do a soft credit check on its website, so you can see what rates and terms you're eligible for.
Fees
There are no early payoff fees for Avant loans, meaning you won't be penalized for knocking your loan out faster by paying a little extra every month. And if you miss your payment due date, there is a 10-day grace period before getting charged the $25 late fee.
However, Avant charges some borrowers a steep origination fee of up to 4.75% of the total loan amount. If you borrow $20,000, you could see $950 get deducted from the loan amount deposited into your account.
Loan amount
Avant personal loans range from $2,000 to $35,000.
Term length
Terms range from 24 to 60 months and depend on your application, loan amount, interest rate and monthly payment.
Bottom line
Avant is a comparable option to other lenders that cater to borrowers with fair credit scores, like OneMain Financial. If you have damaged credit, you probably won't qualify for the best rates, but you still might be able to find a loan that offers better interest rates than if you were to carry a large balance on your credit card.
OneMain Financial Personal Loans
Annual Percentage Rate (APR)
11.99% to 35.99%
Loan purpose
Debt consolidation, major expenses, emergency costs
Loan amounts
$1,500 to $30,000
Terms
24 - 60 Months
Credit needed
Poor/Fair
Origination fee
Origination fee starting at $25 to $500 or percentage ranging from 1% to 10% (depends on your state)
Early payoff penalty
None
Late fee
Up to $30 per late payment or up to 15% (depends on your state)
Terms apply.* Click here to see if you prequalify for a personal loan offer.
*You must complete a loan application and continue to meet any criteria used to select you for a loan offer. Not all applicants are approved. Loan approval and actual loan terms depend on applicant's state of residence and ability to meet OneMain Financial credit standards such as a responsible credit history, sufficient income after monthly expenses, and if applicable, availability of eligible collateral.
Not all approved applicants qualify for larger loan amounts, lower APRs, or the most favorable loan terms. For example, larger loan amounts typically require a first lien on a motor vehicle that is no more than ten years old, meets our value requirements, and is titled in applicant's name with valid insurance. APRs are generally higher on loans not secured by a vehicle.
Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07.
OneMain charges origination fees allowed by law. Depending on the state where the loan is opened, the origination fee may be either a flat amount or a percentage of the loan amount. Flat fees vary by state, ranging from $25 to $500. Percentage-based fees vary by state, ranging from 1% to 10% of the loan amount subject to certain state limits on the fee amount.
For information about these fees and minimum and maximum loan sizes available in certain states, visit omf.com/loanfees.
Current OneMain Customers: Loan offers presented to a consumer assume the individual has no active loan with OneMain or one of its affiliates. If a customer applies for a new loan offer, a OneMain representative will discuss available options.
Active-duty military, their spouse or dependents covered by the Military Lending Act (MLA) may not pledge any vehicle as collateral. If you are covered by the MLA, you are not eligible for secured loans.Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB's Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; or for gambling or illegal purposes.
Time to Fund Loans: Funding within one hour after loan closing through SpeedFunds® must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after closing.
Our methodology
To determine which personal loans are the best, Select analyzed dozens of U.S. personal loans offered by both online and brick-and-mortar banks, including large credit unions, that come with fixed-rate APRs and flexible loan amounts and terms to suit an array of financing needs. When possible we chose loans with no origination or sign-up fees, but we also included options for borrowers with lower credit scores on this list. Some of those options have origination fees.
When narrowing down and ranking the best personal loans, we focused on the following features:
- Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you lock in an interest rate for the duration of the loan's term, which means your monthly payment won't vary, making your budget easier to plan.
- Flexible minimum and maximum loan amounts/terms: Each lender provides a variety of financing options that you can customize based on your monthly budget and how long you need to pay back your loan.
- No early payoff penalties: The lenders on our list do not charge borrowers for paying off loans early.
- Streamlined application process: We considered whether lenders offered same-day approval decisions and a fast online application process.
- Customer support: Every loan on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
- Fund disbursement: The loans on our list deliver funds promptly through either electronic wire transfer to your checking account or in the form of a paper check. Some lenders (which we noted) offer the ability to pay your creditors directly.
- Autopay discounts: We noted the lenders that reward you for enrolling in autopay by lowering your APR by 0.25% to 0.5%.
- Creditor payment limits and loan sizes: The above lenders provide loans in an array of sizes, from $500 to $100,000. Each lender advertises its respective payment limits and loan sizes, and completing a preapproval process can give you an idea of what your interest rate and monthly payment would be for such an amount.
After reviewing the above features, we sorted our recommendations by best for overall financing needs, debt consolidation and refinancing, small loans and next-day funding.
Note that the rates and fee structures advertised for personal loans are subject to fluctuate in accordance with the Fed rate. However, once you accept your loan agreement, a fixed-rate APR will guarantee interest rate and monthly payment will remain consistent throughout the entire term 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 hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.
*Your LightStream loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 7.99% APR with a term of 3 years would result in 36 monthly payments of $313.32.
Editor's note: An earlier version of this story said that Avant offers secured personal loans in some states. It does not. This story has been updated to correct that mistake.
