Best Egg vs. American Express: Which Personal Loan Is Right for You?

The best personal loan depends on your needs and situation, but options like Best Egg and American Express are ideal if you need immediate funds. American Express features a lower maximum APR, which can be fantastic for customers who want to pay less in interest. Still, you may find Best Egg as the best option if you have good credit and a respectable salary.

You can compare lenders and find the most suitable choice for your needs with the help of MoneyGeek's comprehensive and up-to-date information on well-known personal loan lenders in the U.S.

Although Best Egg offers a higher maximum loan amount, American Express has a lower minimum credit score requirement. However, your financial needs and situation will determine which lender is ideal for you.

It's important to thoroughly review Best Egg and American Express, their APRs, credit score requirements, loan amount and payback terms before applying for a loan.

The amount of interest a borrower will repay on their loan each year, plus any extra fees or charges imposed by the lender, is defined as an annual percentage rate (APR). Because the APR you receive is dependent on several factors, including your credit score, loan type, loan size and the underwriting model used by the lender, you aren’t guaranteed to receive the lowest APR. Keep in mind that APRs constantly change.

A borrower must have a credit score of at least 700 to be eligible for a Best Egg personal loan because the lender runs a soft inquiry to determine your rates. American Express requires that you provide your details during the prequalification procedure, but it will only provide your APR after your creditworthiness and other factors have been assessed.

In most cases, your credit score will impact your eligibility for a loan and what loan terms you will receive. In general, a higher score can help you obtain better loan conditions, such as a more reasonable APR. Long-term responsible financial habits, such as paying off your credit card balances in full each month, will help you establish credit.

A borrower's credit score must be at least 700 in order to qualify for a Best Egg personal loan, while American Express requires a credit score of 660 or higher. Each lender performs a soft credit check that has no impact on your credit score. However, once you accept the Best Egg offer, a hard inquiry will be made that could have a minor impact on your credit score.

The lowest and highest amount that a lender will loan to a borrower is defined as the loan amount range. Best Egg allows borrowers to receive up to $50,000, which is the higher maximum loan amount of the two lenders. For major purchases like house renovations, a Best Egg personal loan would be ideal.

However, the maximum loan amounts of both Best Egg and American Express are lower in comparison to other lenders, which may offer at least $100,000. Instead of taking out several small loans from various lenders, it’s advisable to find a lender whose product line covers all of your lending needs to simplify your finances.

The length of time you have to repay a loan is determined by the repayment term, also referred to as the payback period. Usually, lower interest rates are associated with shorter repayment terms, but other variables, such as your credit score, may still play a role.

American Express provides a broader range of payback terms of two to seven years as opposed to Best Egg’s three to five years. But keep in mind that a longer payback period has some disadvantages. In other words, even if your APR is low, you will pay more interest if your payback time is lengthy — make sure to consider this when assessing a lender's repayment period.

The normal turnaround time for conventional lenders ranges from a few days to several weeks. Unlike traditional lenders, both Best Egg and American Express offer quick funding.

American Express is a better choice if you need a loan urgently and have fair-to-excellent credit. The lender that is best for you will depend on a number of other aspects, including the repayment terms, APR and the amount of your authorized loan, since there isn't much of a difference between the two lenders when it comes to the time it takes to receive funds.

Even though Best Egg and American Express provide personal loans with quick financing times, the latter emerges as the superior personal loan provider because of its lower APR range, longer repayment term and faster fund disbursement. The best lender for you, however, will ultimately depend on your financial situation and needs.

MoneyGeek outlines different borrower profiles who may find American Express personal loan as their most ideal choice:

• For those who want to consolidate debts. If borrowers desire to consolidate their existing debts, an American Express personal loan is the ideal option.
• For credit builders. Since American Express sends payment data to the major credit bureaus, customers can also raise their credit scores by paying their bills promptly.
• For consumers who want to save on origination or prepayment fees. American Express personal loans might be the best option for borrowers who want to avoid origination or prepayment fees.

In the end, an American Express personal loan is better suited to people with fair-to-excellent credit because of its loan agreement details.

You should weigh your options carefully before taking out a personal loan. MoneyGeek answered some frequently asked questions about personal loan lenders to assist you with the process.