Getting a personal loan with a low credit score can be tough. Many lenders won’t consider you eligible if you fall into that “poor” credit range. But don’t worry.
There are some personal loan companies, such as Avant and LendUp, that have loan options for those with less-than-stellar credit. But, between Avant and LendUp, which loan is better for you? Consider these important factors.
Personal loans through Avant
Avant provides unsecured fixed-rate personal loans. With this type of loan, you could refinance credit card debt, borrow money for a home improvement project, or pay for unexpected expenses.
The application for a loan is completed online, making the process fast and easy. But before applying, you’ll want to consider some pros and cons.
Pros of loans through Avant
Not only will Avant consider your application even if you have a low credit score, but working with this lending platform has other benefits.
You can get your money after one business day.
- There are no prepayment fees.
- Although the average customer has a credit score between 600 and 700, those with poor credit are also considered.
The company has a 95% customer satisfaction rate.
Cons of loans through Avant
Although there are many benefits, you should consider these drawbacks.
APRs range from 9.95% to 35.99%, as of April 18, 2018. Some other personal loan lenders, such as Best Egg, offer lower rates. But be sure to double-check Avant’s website for the latest rates.
Installment loans come with an administration fee of up to 4.75% of the total loan amount.
- Loans through Avant aren’t available in every state.
Interest rates are dependent on your financial profile and credit score. So, even if you’re eligible with a low score, you could face up to a 35.99% APR.
LendUp personal loans
While LendUp provides its customers with cash in a pinch, its products are structured like payday loans. For example, you could borrow $200 with a 14-day repayment period and high interest rate.
Pros of LendUp loans
The biggest benefit of LendUp is the ability to get money fast. But there are some other positives as well.
There are multiple options if you’re having trouble paying back the loan.
Repeat customers can borrow more funds and at lower rates, using their LendUp Ladder program.
- They offer loans to borrowers with low credit scores.
There’s an education platform with free videos and articles breaking down complex financial matters. It also teaches you how to make better money decisions.
Cons of LendUp loans
Although there are some benefits, you should be aware of some major downsides.
APRs can reach over 900.00%, as of April 18, 2018. Since their high-end rates are for very short-term loans, you would actually pay just a small fraction of that 900% of principal, but that’s still much steeper interest than on a longer-term loan. Make sure to double-check rates in your state to get a clear idea of the costs.
LendUp loans aren’t available in every state.
LendUp focuses on smaller, shorter-term loans, so they’re not a good fit if you’re looking for something beyond that. With an installment loan, you can only borrow up to $1,000 with a term up to 12 months.
There’s a maximum 30-day term for single-payment loans.
Avant vs. LendUp: Interest rates, terms, and fees
When it comes to Avant and LendUp, which loan is better for you? There are some pretty major differences between Avant and LendUp, especially when it comes to interest rates, terms, and fees. Knowing these will help you make the best borrowing decision.
As you can see from the chart below, Avant and LendUp offer very different loans.
|Loan amount||Interest rate||Fees||Term|
|Avant||$2,000 to $35,000||9.95% to 35.99% APR||Administrative fee (up to 4.75%); late fee (varies by state); and returned payment fee||24 to 60 months|
|LendUp||$100 to $1,000||APRs range from around 30.00% to over 900.00%, depending on the loan type.||Returned check fee ($10); administrative fee ($50 or 5% of the amount financed, whichever is less)||7 days to 1 year|
Avant and LendUp: Which loan is better for you?
Both of these companies offer personal loans for people with poor credit. But that’s where the similarities end. Everything from loan amounts to interest rates and repayment terms differ. That’s why it’s important to think about why you’re borrowing money in the first place.
If you need a little bit of cash quickly and were considering a payday loan, LendUp might be the better solution. This lending platform can be helpful in a situation where you’re short on rent, waiting for your next paycheck to come through, or don’t have the credit for a traditional personal loan.
Be aware though, short-term loans carry high interest rates: If you borrowed $200 from LendUp for two weeks, you’d owe $235, which works out to an APR of more than 400%.
Meanwhile, Avant is the better option if you need more money and want a longer-term loan. You can still get a loan if you have a lower credit score, too. Your interest rates will just be higher.
If you have good credit, you could get a better interest rate with Avant. That could be helpful if you’re using the money to refinance or consolidate debt. Just know that there are many personal loan companies with similar offerings. So, shop around before settling on one.
Note: Student Loan Hero has independently collected the above information related to these loan products. Avant and LendUp have neither provided nor reviewed the information shared in this article.
Interested in a personal loan?Here are the top personal loan lenders of 2018!
|Lender||APR Range||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Includes AutoPay discount. Important Disclosures for Payoff.
3 Important Disclosures for FreedomPlus.
4 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
5 Important Disclosures for LendingPoint.
6 Important Disclosures for LendingClub.
All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.16% to 35.89%. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at time of application. The origination fee ranges from 1% to 6% and the average origination fee is 5.49% as of Q1 2017. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months or longer.
7 Important Disclosures for Earnest.
8 Important Disclosures for Avant.
* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.
** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33
* Important Disclosures for Upgrade Bank.
Upgrade Bank Disclosures
** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.
|7.73% – 29.99%||$1,000 - $50,000||Visit Upstart|
|6.26% – 14.87%1||$5,000 - $100,000||Visit SoFi|
|6.99% – 35.97%*||$1,000 - $50,000||Visit Upgrade|
|8.00% – 25.00%2||$5,000 - $35,000||Visit Payoff|
|4.99% – 29.99%3||$10,000 - $35,000||Visit FreedomPlus|
|5.99% – 18.99%4||$5,000 - $50,000||Visit Citizens|
|15.49% – 34.49%5||$2,000 - $25,000||Visit LendingPoint|
|6.16% – 35.89%6||$1,000 - $40,000||Visit LendingClub|
|6.99% – 18.24%7||$5,000 - $75,000||Visit Earnest|
|9.95% – 35.99%8||$2,000 - $35,000||Visit Avant|