Avant vs. Earnest: Which Is Best For You?

Getting approved for a personal loan with subpar credit can be challenging. If you can relate, Avant and Earnest are two options to consider as you explore loan options.

Avant is an online lender specializing in fast unsecured personal loans for borrowers with lower credit scores. Earnest partners with Fiona to offer personal loans with flexible loan amounts and repayment periods.

Avant vs. Earnest at a glance

Avant and Earnest offer unsecured personal loans to borrowers with varying financial backgrounds. Both allow you to get prequalified without impacting your credit score. Still, there are some key differences to be aware of to make an informed decision. Bicycle Insurance And Protection Against Bike Theft

Avant Earnest
Bankrate Score 4.7 4.8
Better for Fast funding times Borrowers with a co-signer
Loan amounts $2,000-$35,000 $1,000-$250,000
APRs 9.95%-35.99% Varies by lender
Loan term lengths 12-60 months 6 months to 12 years
Fees Administration fee: up to 4.75 percent Late fee: $25 for delinquencies over 10 daysReturned payment fee: $10 Varies by lender
Minimum credit score 550 Varies by lender (650 with a co-signer)
Time to funding As soon as the next business day Varies by lender

Avant personal loans

Pros

  • User-friendly mobile app.
  • Quick funding times.
  • No early repayment penalty.

Cons

  • Steep maximum APR.
  • Loan origination fees.
  • Limited availability.

Avant is a direct lender offering unsecured personal loans between $2,000 and $35,000. Its interest rates are nothing to marvel over, as the maximum APR is a bit on the higher end. Still, its personal loans are worth considering since you could get approved with a credit score as low as 550.

Avant does charge a loan origination of up to 4.75 percent. The upside is that you won’t be charged a prepayment penalty if you pay the loan early. And most loans are funded as soon as the next business day following approval. Does Insurance Cover You If Your Car Is Stolen?

The lender currently serves borrowers in all states except Colorado, Hawaii, Iowa, Nevada, New York, Vermont and West Virginia.

Earnest personal loans

Pros

  • Co-signers permitted.
  • Perfect credit not required.
  • Range of loan amounts.

Cons

  • Mobile app unavailable.
  • Not a direct lender.
  • Eligibility contingent upon lending partner.

Earnest is not a direct lender. Instead, it works directly with Fiona, an online lending platform, to match consumers with personal loans of up to $250,000. Loan terms are between 6 months and 12 years, but APRs are not disclosed online since they vary by lender.

You can use the loan proceeds however you see fit, as Earnest does not disclose spending restrictions. It also allows co-signers to help credit-challenged borrowers boost their approval odds.

This option also stands out amongst others in the industry due to its range of loan amounts. You can borrow as little as $1,000 if you’re seeking a small loan. But if you need to borrow a large amount, the maximum limit is greater than you’ll find with many other lenders, assuming you meet the lender’s eligibility guidelines.

How to choose between Avant and Earnest

You could get a flexible personal loan with both Avant and Earnest, but you could access more funding with the latter. Earnest also features lengthier repayment periods to help make your monthly loan payments more manageable.

That said, it’s difficult to determine which offers the most competitive rates since Earnest does not disclose this information online. You’ll need to get prequalified to view potential loan offers.

Avant offers fast funding

It’s not uncommon for Avant to issue loan lending decisions in minutes. If you qualify for funding and submit the requested documentation, you could get approved the same day. And in many instances, loans approved by 4:30pm CT during the week are funded as soon as the next business day.

Earnest states some lenders may offer next-day funding. However, there are no guarantees that the lender you’re matched with offers this perk.

Earnest allows co-signers

Earnest permits borrowers to use a co-signer to strengthen their approval odds and potentially qualify for better loan terms. You can also get prequalified first to determine if a co-signer makes sense for your financial situation or if you could get approved for a loan on your own. How Do Insurance Agent Commissions Work?

Unfortunately, Avant does not accept co-signers. So, you could be denied a loan if you have less-than-perfect credit or don’t meet the minimum income guidelines.

Compare lenders before applying

Both Avant and Earnest are viable options for unsecured personal loans. It’s worth getting pre-qualified with both to determine which offers you the most competitive loan offer.

If the options are comparable, Avant could be ideal if you don’t plan to use a co-signer and need funding immediately. On the other hand, Earnest could make more sense if you want the luxury of having your information shopped around to several lenders to find the best deal or plan to use a co-signer.

It’s also worth searching for other bad credit lenders to determine if you can get a better deal elsewhere. Check out Bankrate’s personal loan online prequalification tool to get started.

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