Leverages Big Data Analytics to Make Better Credit Decisions and Provide Easy and Convenient Loans of up to $10,000 to Near Prime Borrowers
CHICAGO, IL--(Marketwired - Jul 16, 2013) - Near-prime borrowers seeking low-cost personal loans without the headache of mountains of paperwork and multiple trips to the bank can now get a loan online from AvantCredit. The first analytics-based personal lending platform is redefining the way customers borrow money, going beyond the credit score to deliver a streamlined borrowing process at some of the lowest costs available. Loans for qualified middle class American households are now easier with more customized interest rates, giving effective access to credit to many people with less than perfect credit from the recent recession.
Using big data and advanced machine-learning algorithms, AvantCredit analyzes thousands of trends and patterns in lieu of the traditional one-size-fits-all credit model to offer competitive rates on an individual basis. The company's technology takes into account many more variables in order to better suit each borrower's needs rather than looking at an individual as just a credit score. The platform was designed specifically with the borrower in mind with easy-to-use online tools.
"What we really wanted to do was solve a major problem in today's personal loan industry," said John Sun, co-founder of AvantCredit. "Current methods for determining near-prime lending risk simply don't work; they are either too generic, too simplistic or too restrictive, relying heavily on the FICO-based decision process. It may seem counterintuitive, but we've used technology to make the entire process much more human for our customers. It involves a deep knowledge in risk analytics and an ability to deploy a lending platform that looks at thousands of variables in a matter of seconds while the applicant is still online. This allows a fairer assessment of the individual than a face-to-face interview."
Backed by August Capital and Victory Park Capital, AvantCredit aims to service more than $1 billion in loans over the next five years and has built a portfolio of $10 million in the first six months of operation. Borrowers are already seeing the advantages of its "smart lending" process.
"I knew my credit score wasn't too good -- the result of a Chapter seven on a divorce -- and I found the deal with AvantCredit more than fair," said Alan Zabriskie, an AvantCredit customer in Utah. "It was a fraction [of the cost] of the payday lenders, especially since it's just a signature loan with no collateral or anything. And it went as smooth as can be. I applied on a Friday and they had it funded by Monday."
The Chicago-based company is currently fully licensed to offer personal loans between $1,000 and $10,000 to near-prime borrowers in California, Georgia, South Carolina, Illinois, Wisconsin, Louisiana, Oregon, Delaware, Idaho, Virginia, Missouri, Alabama, Utah, New Mexico and South Dakota, with Colorado and Texas coming soon.
AvantCredit is changing the way near-prime individuals borrow money. Utilizing advanced algorithms and machine-learning capabilities, the company offers a unique and highly customized approach to the personal loan process. The combination of technology, analytics and customer service capabilities allows the company to offer an easy-to-use online process for loans to borrowers with less-than-perfect credit at some of the lowest costs available, all entirely online. AvantCredit operates in 15 U.S. states and is licensed and regulated on a state by state basis. Find out more at AvantCredit.com.