Best personal loans for emergencies April 2021 – Forbes Advisor
Founded in 2012 and based in Chicago, Avant is a consumer lending platform that offers secured and unsecured personal loans through a third-party bank (WebBank). Unsecured loans are available in Washington, DC and in all states except Hawaii, Louisiana, Nevada, and South Carolina. The platform specializes in middle-income borrowers with average to good credit and only requires a minimum score of 580 to qualify, so it’s an accessible option if you have less credit than stellar credit but you need money fast.
Prior applicants who are approved for an unsecured loan by 4:30 p.m. Central Time, Monday through Friday, may receive their funds the next business day. This schedule may vary, however, depending on the borrower’s bank. It may also take longer for borrowers who take out secured loans.
Avant’s low minimum loan amounts ($ 2,000 to $ 35,000) and flexible repayment terms (2 to 5 years) should be suitable for those who need access to emergency funds, but do not don’t want to borrow more than they need. These loans come at a price, however. In addition to an administrative fee of up to 4.75% of the loan amount, Avant’s APR range (9.95% to 35.99%) is high for applicants with a good to excellent credit rating – and there is no automatic payment reduction. Nonetheless, the platform scores top marks for borrowers with lower credit than a stellar who need quick access to funds.
Note: Avant agreed to a $ 3.85 million settlement with the Federal Trade Commission (FTC) in April 2019. According to FTC documents, the lawsuit was filed in response to allegations that, among others, Avant charged consumers late fees and interest that they did not owe and collected payments from customers without authorization or in amounts greater than authorized. We contacted Avant to find out what it had done to adjust practices since the settlement, but we have not received a response. Even so, Avant has a high 4.7 star rating on Trustpilot.
Eligibility: Avant specializes in lending to a range of clients, including those with fair credit. The platform has a minimum credit score requirement of only 580 (the average is 600 to 700) and a minimum income requirement of only $ 20,000 (the average is $ 40,000 to $ 100,000).
Avant does not allow co-signers or co-applicants, but it will take into account non-employment income and the income of other members of your household. If you need a personal loan quickly but don’t have high credit, you may still qualify.
The loan uses: Like other leading lenders, Avant loans can be used to consolidate debt and pay for expenses such as medical bills, auto repairs, renovations, and other emergency expenses. That said, Avant borrowers cannot use personal loan funds to cover business expenses. So if you need emergency cash for your business, Avant is not the lender for you.