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Avant and OneMain Financial cater to borrowers with less-than-perfect credit. They have higher rates than some other lenders on the market, but they are good options if you are unable to qualify with banks or more competitive online lenders.
Avant vs. OneMain Financial at a glance
Avant and OneMain Financial have similar offers, though Avant may cost slightly less for some borrowers.
| Avant | OneMain Financial | |
|---|---|---|
| Bankrate score | 4.7 | 4.4 |
| Better for | Lower potential APR | Smaller loans |
| Loan amounts | $2,000-$35,000 | $1,500-$20,000* |
| APRs | 9.95%-35.99% | 18.00%-35.99% |
| Loan term lengths | 12-60 months | 24-60 months |
| Fees |
|
|
| Minimum credit score | 550 | No set minimum credit score |
| Time to funding | As soon as the next business day | As soon as the same day |
*Loan amounts vary by state of residence
Avant personal loans
Avant personal loans
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Pros
- Reasonable starting APR.
- Late payment grace period.
- Low minimum credit score requirement.
Cons
- High starting loan amount.
- Steep administrative fees.
- No joint applications.
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Avant’s personal loans are slightly more competitive than OneMain Financial. Although its administrative fee — similar to an origination fee — is high at nearly five percent, it may still be smaller than what you could qualify for with OneMain. Similarly, the annual percentage rate (APR) on its loans starts at a much lower rate than OneMain Financial.
Its loans are also unsecured, which means you don’t need to provide collateral to be approved. You can qualify as long as your credit score is 550 or higher and you have an open checking or savings account.
These features make Avant a good option if you have a credit score on the lower end of the fair credit range. You could score a loan with a lower monthly payment and limit your risk.
OneMain Financial personal loans
OneMain Financial personal loans
Rating: 4.4 stars out of 5
4.4
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Pros
- No minimum credit score.
- Potential same-day funding.
- In-person and online applications.
Cons
- High starting APR.
- Origination fee.
- Not available in every state.
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OneMain Financial is a top lender for borrowers with bad credit. There is no minimum credit score, which means you may be able to qualify with OneMain even if other lenders won’t consider your application. And unlike payday loans, its APR is capped at 36 percent. While that does mean high monthly payments, it is a less predatory rate than other lenders that work with bad credit.
That doesn’t make OneMain Financial cheap, however. You will face a starting APR of 18 percent — much higher than other lenders — combined with an origination fee that can be up to 10 percent of the loan amount. In addition, OneMain Financial requires you to provide collateral to secure your loan. This can be any valuable asset, but it can make qualifying difficult if you don’t have something that meets OneMain’s criteria.
The primary benefit to borrowing with OneMain is its same-day funding. If you are able to pick up a check, you can have your funds the same day you apply. If not, a bank account transfer takes about as long as Avant, usually one to two business days.
How to choose between Avant and OneMain Financial
Ultimately, Avant and OneMain Financial are similar enough that it doesn’t hurt to apply with both lenders. Since they allow you to prequalify for a loan, you can see your potential rates without impacting your credit score. This means you can make an informed decision and choose the lender that offers you the better deal.
Avant has a lower potential APR
Avant is a good choice if you meet its credit requirement because of the lower APR. While you could receive an APR similar to the range offered by OneMain Financial, the chance of a lower monthly payment makes applying worthwhile. Its lower fees and late payment grace period are also benefits.
OneMain Financial has smaller loans
OneMain Financial is a good choice if you need to borrow a smaller loan or don’t meet Avant’s credit requirements. Its minimum loan amount is $1,500, and you could get funded the same day you apply. Provided that the monthly payments fit comfortably into your budget, OneMain Financial is a better choice for borrowing less — which could mean spending less overall.
Compare lenders before applying
Avant and OneMain Financial are solid options but aren’t the only available choices. There are a wide range of bad credit loans available, so keep searching until you find a lender that works for you. As with any loan, calculate the cost — with fees — before you borrow to ensure you are getting a loan that fits your budget.
