Think you are overpowered by high credit card interest rates and juggling multiple loan payments? Debt consolidation may provide some much-needed breathing space.
Debt consolidation is a combination of unsecured debts like credit cards, medical bills, and personal loans into one new consolidated loan. This results in a single monthly payment, often at a lower interest rate. Consolidation can simplify repayment and reduce the total interest paid over the loan term. An online lender offering debt consolidation loans is Avant.
Avant provides fixed-rate consolidation loans that roll together your existing debts into one new loan with just one monthly bill. This can make repayment easier to manage and potentially more affordable.
In this post, we cover how Avant debt consolidation works, key benefits and drawbacks to consider, eligibility requirements, and tips for finding the best Avant consolidation loan for your situation.
What is Avant Debt Consolidation?
Avant is an online lending platform, not a brick-and-mortar bank. Here are some key things to know about their debt consolidation loans:
- You start by completing an online form with details on your debts, income, employment, and other financial information.
- Based on your details, Avant provides loan offers presenting the terms, rates, and monthly payment amount if approved.
- If you accept a loan offer, Avant pays off your balances directly to each creditor and establishes a new fixed-rate Avant consolidation loan.
- You repay the single new Avant loan each month. The fixed rate and term length are set so the monthly payment is affordable for your budget.
Avant focuses on providing access to personal loans, including debt consolidation options, for those with less-than-perfect credit. Consolidating through Avant combines balances into one loan for simplified repayment.
Benefits of Avant Debt Consolidation
Some top benefits of consolidating debt through Avant include:
- Avant offers interest rates generally lower than credit card APRs, saving money over the loan term.
- Avant consolidation loans lock in a fixed rate, so your payment remains steady.
- You make just one monthly payment to Avant instead of many bills.
- Paying off credit cards can boost your credit score over time.
- Avant serves those with lower credit scores who may not qualify with traditional lenders.
For many, an Avant debt consolidation loan provides affordable access to simplify debt repayment under one loan.
Drawbacks
While advantageous in many ways, there are some potential disadvantages of Avant debt consolidation to note:
- Consolidating debts can temporarily lower your credit score by closing accounts.
- Although the rate is lower, a longer repayment term means more total interest paid.
- If you miss payments, your credit score will be damaged significantly.
- Avant charges origination fees that can offset interest rate savings.
- The total consolidation loan balance will be the sum of all debts combined.
Though debt consolidation has many benefits, consider both pros and cons carefully when deciding if it aligns with your financial goals.
Who Is Eligible for Avant Debt Consolidation?
Avant has some basic requirements for approval for one of their debt consolidation loans:
- Someone with at least $2,000 in total credit card or unsecured debt to consolidate.
- Someone with a sufficient steady income from employment, self-employment, retirement, or other sources.
- Someone who has a minimum credit score between 580-600 for debt consolidation loans.
- Someone who has verified income, employment, and identity to qualify for loan approval.
If you meet these qualifications, you are likely to be approved for an Avant debt consolidation loan. Pre-qualifying allows you to check your rates without impacting your credit score.
Tips for Finding the Best Avant Consolidation Loan
Make sure to compare multiple offers to find the best Avant debt consolidation loan:
- Compare interest rates, terms, fees, and lender reviews across multiple offers. Slight differences can save thousands.
- Specifically, look for the lowest interest rate and shortest repayment term that fits your budget. Don’t extend your term unnecessarily.
- Leverage online pre-qualification forms to check your actual rates without hard credit inquiries.
- Carefully read the fine print and full terms and conditions before accepting a loan offer.
- Factor in any fees like origination fees into the total cost of the loan.
- Consider all online lending marketplace options in addition to applying directly through Avant.
Putting in the effort upfront to find the best loan offer will pay off tremendously over the long run.
Is Avant a Legitimate Loan Company?
With so many online lenders to choose from, you may wonder “If Avant is legitimate, Can they provide the debt consolidation loan they claim?” These are important questions to ask when trusting a company with your financing.
The good news is that Avant is a legitimate online loan provider backed by qualified investors and loan experts. Here are some key facts that support Avant’s credibility:
- The firm has been operational since 2012. Avant has been in business for over a decade, successfully funding over 1 million loans. Their longevity and loan volume speak to their legitimacy.
- Avant was founded by financial industry leaders with backgrounds at Goldman Sachs, Bain Capital, and PayPal. The executive team has solid lending experience.
- Avant has raised over $1 billion from investors including General Atlantic, JP Morgan, and Circle Ventures. This funding fuels their ability to issue consolidation loans.
- Independent review sites like Trust Pilot rate Avant 4 out of 5 stars based on thousands of customer reviews. Their loan experiences are predominantly positive.
- Avant adheres to federal and state lending laws as an online loan provider. They operate within legal and regulatory requirements.
Conclusion
If you are overwhelmed by debt repayments, Avant debt consolidation loans can provide affordable consolidated payment relief. Avant caters specifically to those with less-than-perfect credit by offering accessible debt consolidation options.
Be sure to weigh both the advantages and potential disadvantages before moving forward with a debt consolidation loan. Use Avant’s online pre-qualification form to view actual loan offers tailored to your situation. With prudent planning, Avant debt consolidation can simplify your payments and help tackle debt.
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