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Anyone have experience with refinancing an Avant personal loan?

bms432
New Visitor

Anyone have experience with refinancing an Avant personal loan?

Hi everyone,

 

I'm in a pretty bad financial situation but recently got a better paying job and simultaneously received about $6k in inheritance money. I'm trying to decide on the best way to put that $6k to use, given my situation. I'm thinking of using it to pay off my highest interest personal loan (Avant), but the only reason I'm hesitant is because I know that paying off revolving debt would improve my credit score more than paying off installment debt, plus Avant has a refinancing program, so I'm wondering if it would be a better strategic move to put the money toward credit card debt and then try to refinance the Avant loan once my score increases.

 

Here's a quick overview of my debt:

 

Credit Cards:

 

$9600 on cards ranging from 24-26% APR
$700 at 16% APR
$11500 at 4% APR

 

Personal Loans:

 

$5800 at 30% APR (Avant)
$4200 at 27% APR
$2000 at 10% APR

 

My Equifax score is currently 670, per MyFICO. The credit score simulator estimates that my score will jump to a 705 if I immediately pay off $6k of revolving debt. Does anyone have experience with Avant's refinancing and could let me know if this would be a good enough score to refinance and get a signicantly lower rate? If you could share any data points (such as your FICO score when you refinanced, your original APR, and your refinanced APR), that would be awesome!

Message 1 of 4
3 REPLIES 3
ecxpa
Valued Contributor

Re: Anyone have experience with refinancing an Avant personal loan?

Wow,  I feel your pain........who has the 10% loan, would they be willing to consolidate the other high interest loans?   Greatest benefit  is to certainly get rid of the higher interest loans......I would worry more about getting rid of this debt ASAP than my credit score.    Getting a better credit score does not guarantee approval for a lower interest rate in the short term.   Sorry, I don't have or know of anyone with experience  refinancing an Avant loan.   

Message 2 of 4
SteelerNYC
Valued Contributor

Re: Anyone have experience with refinancing an Avant personal loan?


@bms432 wrote:

Hi everyone,

 

I'm in a pretty bad financial situation but recently got a better paying job and simultaneously received about $6k in inheritance money. I'm trying to decide on the best way to put that $6k to use, given my situation. I'm thinking of using it to pay off my highest interest personal loan (Avant), but the only reason I'm hesitant is because I know that paying off revolving debt would improve my credit score more than paying off installment debt, plus Avant has a refinancing program, so I'm wondering if it would be a better strategic move to put the money toward credit card debt and then try to refinance the Avant loan once my score increases.

 

Here's a quick overview of my debt:

 

Credit Cards:

 

$9600 on cards ranging from 24-26% APR
$700 at 16% APR
$11500 at 4% APR

 

Personal Loans:

 

$5800 at 30% APR (Avant)
$4200 at 27% APR
$2000 at 10% APR

 

My Equifax score is currently 670, per MyFICO. The credit score simulator estimates that my score will jump to a 705 if I immediately pay off $6k of revolving debt. Does anyone have experience with Avant's refinancing and could let me know if this would be a good enough score to refinance and get a signicantly lower rate? If you could share any data points (such as your FICO score when you refinanced, your original APR, and your refinanced APR), that would be awesome!


You can deal with your score later. You are in a bad bad spot having so much high interest debt on these bad loans and need to pay it off ASAP. 

 

Ditch the 30% loan, then the 27% loan, then the 24-26% cards and so on.

 

Rework your budget, sell anything you don't need, cut expenses, try to bring more $$ in and so forth.

 

Don't get anymore of these loans.

Ch 7 Discharge May 2015
Discover/Target/NFCU CLOC/NFCU More Rewards Amex/NFCU Platinum/PenFed Power Cash Rewards/PenFed Pathfinder Visa/Citi Costco Visa/CapitalOne SavorOne/Apple Card - $139,100 total revolving, 21% utilization
3.25% mortgage July 2020, $20k used Auto Loan October 2020, $20k PenFed Personal Loan Dec 2020
687/683/673 EX/EQ/TU w/ 5/6/6 INQs as of Jan 2021
Spending 2021 in the Garden
Message 3 of 4
HeavenOhio
Community Leader
Senior Contributor

Re: Anyone have experience with refinancing an Avant personal loan?

Another way to look at it is that 24–26% isn't that far away from the 27 and 30 percent you're paying on the loans. If paying down the credit card debt can get you a reasonable refinancing deal, I'd bet that you pay less in the long run.

 

I'd also bet that with a 670 score, you can get a heck of a lot better than 30% if you refinanced today. Bump up the score a bit, and you might get a better deal in a month.

Message 4 of 4
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