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Has Anyone Ever Taken a Loan From AvantCredit?

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ddemari
Super Contributor

Has Anyone Ever Taken a Loan From AvantCredit?

2 years I took out a loan from AvantCredit when I was in college and need 2k to get a hold off of my school account. I paid the loan off ontime, no problems ever with it (although high interest). Back then, I believed a different type of loan would also help my credit mix but probably not a finance company loan like them.

 

Well, fast forward to June of this year and I received an email from Avant saying you are preapproved for a loan with no credit inquiry made on your file and the interest rate was SOOOO much lower than before. So I took the bait and took out a 3k and paid off some stuff. 

 

I am so wishing I did not do this because last time I took out the loan, Avant only reported to TU. 3 months have passed and now the loan is showing up on my EQ, EX and TU credit reports and I feel like its negating all the good work on did on EQ and TU lol. 

 

Oh well, just wondering if anyone else has had experience with them reporting. 

Message 1 of 10
9 REPLIES 9
pizzadude
Credit Mentor

Re: Has Anyone Ever Taken a Loan From AvantCredit?

Why do you think it's bad for the tradeline to be reporting, are there late payments?

 

Also I'm moving this to the General Credit forum.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 2 of 10
ddemari
Super Contributor

Re: Has Anyone Ever Taken a Loan From AvantCredit?

No late payments nothing like that. I guess i am just worried about it how it looks on my cra profile. I was ok with reporting to just tu but dont like it on all 3 haha.
Message 3 of 10
pizzadude
Credit Mentor

Re: Has Anyone Ever Taken a Loan From AvantCredit?

As long as it's a positive tradeline I wouldn't be concerned about it.  If it was flagged as a consumer finance account the FICO score hit isn't very significant anyway.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 4 of 10
PedrokiPR
Valued Member

Re: Has Anyone Ever Taken a Loan From AvantCredit?

They report it as installment loans. I took a loan with AvantCredit and I love their customer service.

Message 5 of 10
CreditGuy03
Established Contributor

Re: Has Anyone Ever Taken a Loan From AvantCredit?

They do soft pulls. Interest rate was 64%

Equifax - 628, Experian -627, Transunion- 654 In the garden until 01/01/2019
Message 6 of 10
Anonymous
Not applicable

Re: Has Anyone Ever Taken a Loan From AvantCredit?

Please tell me interest was 6.4% not 64%

Message 7 of 10
Imperfectfuture
Super Contributor

Re: Has Anyone Ever Taken a Loan From AvantCredit?


@Anonymous wrote:

Please tell me interest was 6.4% not 64%


LOL, just thinking the same thing.

Signature needs updating
Message 8 of 10
Anonymous
Not applicable

Re: Has Anyone Ever Taken a Loan From AvantCredit?

Generally, you want trade lines to report (i.e. loans to report) to all bureaus so you can establish a credit history. The fact that the loan is reporting is a good thing for your credit score in the long-term, though it could reduce your ability to get other loans in the short-term due to higher debt to income ratio, which is also a consideration when giving loans. 

 

I have no experience with AvantCredit, but be very careful when taking high interest loans. Predatory lenders take advantage of the fact that many people don't understand how compound interest works. For example, if you take a 64% loan (crazy rate...I hope this was the old loan and not the new lesser rate loan) and pay it off in one payment due after a year (to make the math simple), you would have to pay around 86.5% interest if the 64% is compounded monthly. This is significantly higher than 64% APY that you would make if a bank was nice enough to offer 64% APY returns (One can dream, right?). Now if you extend that APR over longer periods of time or shorten the period of compounding, the interest that accrues can get frightening. I avoid paying "high" credit card interest and most of my cards carry interest rates between a little under 8 to around 16%. Occasionally, situations might force one to carry a high interest loan, but make sure you have no other options and you absolutely need the loan for something critical before taking the loan. 

Message 9 of 10
juggar
Contributor

Re: Has Anyone Ever Taken a Loan From AvantCredit?

FWIW I know Upstart doesnt report the loan to your CB's. At least not that you or other creditors can see. I got one and paid all my credit cards off and my score shot up like 30 points on all credit reports. 

 

Catch is you have to have a 4 year degree(or better) or be graduating within 6 months with a 4 year degree(and have a job lined up with proof). 

Amex Green, Chase Freedom(7.5K), Nationwide Visa Signature(6K), Chase Sapphire Preferred(6k), Cap One VentureOne visa signature (5K) BoA Cash Rewards siggy (5K), BoA travel rewards visa siggy(5K) PayPal Extras Mastercard(5K), Capital One QuickSilver(2.25K) Newegg Preferred Account(2K), Citi Forward(3.4K), Dell Account(2K) Discover IT(2.4K), Chase Slate (1.5K) Citi Diamond Preferred ($800), BestBuy Mastercard ($1500),Bill-Me-Later(1.2K), ,Barclay Mastercard(2K). TigerDirect TigerPay(3.15K), Wal-mart credit card(3.9K), Amazon store card (2K)

equifax - 720, TU - 747, Exp - 734 - report date 11/24/2014
15+ inqs...
Message 10 of 10
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