Truist vs. American Express: Which Personal Loan Is Right for You?
Updated: July 25, 2023
Advertising & Editorial Disclosure
MoneyGeek gathered all of the information you’ll need if you’re choosing between a personal loan from Truist and American Express.
Truist is one of the largest financial services companies in the U.S., offering banking, asset management, insurance, mortgages and loan products for both individual and commercial accounts.
Meanwhile, American Express is a multinational payment card services company. It specializes in credit cards, debit cards, checks and other payment options. However, it has a diverse set of products for all financial needs.
To compare the two companies, we’ve collected up-to-date information about their personal loan offerings. This includes APR ranges, loan amounts, funding times, miscellaneous fees and other factors that will help you make the best financial decision.
Truist or American Express: Overview
MoneyGeek analyzed personal loan offerings from Truist and American Express. We evaluated factors that borrowers are most interested in when choosing a provider, including loan amounts, APR ranges, credit score requirements and repayment terms.
Truist and American Express have several differences. Primarily, Truist is available to most consumers and is not limited to existing account holders. Meanwhile, only pre-approved cardholders can apply for an American Express personal loan.
Truist’s personal loan package is also more flexible, with loan amounts ranging from $3,500 to $50,000, while American Express only offers up to $40,000.
Truist
American Express
APR Range
APR refers to the annual percentage rate, which is the sum of the interest that’s charged to borrowers. It’s composed of the interest payment and other costs associated with the loan, such as origination or application fees.
Truist’s personal loans come with APRs that range from 8.14% to 18.99%. Meanwhile, American Express’s lowest APR is 4.93%, but it can go as high as 19.97%. Although American Express offers the lowest possible APR between the two, Truist has a better APR range.
Ideally, you’ll want the lowest possible APR with your personal loan. This will lessen the overall payment you’ll have to make throughout the loan’s lifetime.
Factors such as your credit score, loan amount and repayment term affect the APR that loan providers assign to you. To qualify for a company’s lower APR range, you’ll need good credit and a healthy financial background.
MoneyGeek’s analysis shows that Truist offers a more favorable APR range compared to American Express. Although American Express offers a lowest possible APR that is slightly lower than Truist’s, it offers a higher maximum APR.
Remember, having a loan with a high APR will result in higher overall loan payments. You’ll save more in the long run by choosing the company that offers you the lowest possible APR.
That said, APR is just one of the many factors you should consider before committing to a personal loan product.
Minimum Credit Score
Truist doesn’t list a minimum credit score requirement on its website. It looks at your entire financial picture to determine if you are eligible for a loan.
Meanwhile, American Express requires that you have a credit score of 660 and above to qualify for its personal loan. Note that you’ll need to be a prequalified American Express card member before you can get a personal loan from this company.
Your credit score is a number from 300 to 850 that represents your creditworthiness. The higher your credit score, the easier for you to get a loan. You can also expect lower APRs if you have a high credit score.
Factors like your credit and payment history, loan balance and length of credit history can affect your credit score.
Truist emerges as having the easier credit requirement if you want to get a personal loan. This is because American Express only offers its personal loan products to prequalified cardholders. In turn, this makes getting a personal loan from this provider more cumbersome for the average consumer.
When shopping for a personal loan, it’s easier to secure approval if the company has a more flexible credit score requirement.
However, companies that allow borrowers with low credit scores usually charge higher interest rates. That’s why it’s important to assess personal loan companies based on a wide range of factors.
Loan Amount Range
Both Truist and American Express have a minimum loan amount of $3,500. However, you can borrow up to $50,000 from Truist, while you can only get $40,000 from American Express.
A company’s loan range refers to the lower and upper limits of the money you can borrow. Ideally, you’ll want a company that can match the amount you need. Lenders with wide loan ranges (such as Truist) offer more flexibility on how much you can borrow.
Note that the amount you get approved for will depend on your creditworthiness.
Additionally, it may make sense to find a company with a lower loan range if you only need a small amount of money. Although Truist and American Express have similar minimum loan amounts, you can find companies that offer $1,000 loans.
Truist is the clear winner in terms of loan range. Although its minimum amount is similar to American Express, its maximum loan amount is higher at $50,000.
Before you apply for a loan, it’s a good idea to carefully assess how much you truly need and why you’re borrowing money in the first place. Remember, personal loans are repaid with interest, so needlessly borrowing a large amount of money will result in unnecessary expenses.
When looking for a loan provider, companies that offer smaller amounts are ideal if you only need a small amount of money. On the other hand, lenders that offer up to $50,000 will work for you if you have considerable financial needs.
Loan range is just one component when deciding on a personal loan, so consider a company’s other features before you sign up for its loan.
Repayment Terms
Personal loan companies usually offer a minimum repayment terms that last anywhere from two to four years. However, whereas Truist allows borrowers to repay their loans within six to 60 months, American Express offers repayment terms ranging from 24 to 84 months.
The amount of time it’ll take for you to repay your personal loan is called the repayment term. You’ll have lower monthly payments with a longer repayment term, but you’ll end up paying more over time. Meanwhile, loans with short repayment terms will have higher installment amounts but a lower overall payment.
Your repayment term depends on your credit score, debt-to-income ratio, age, monthly income and other factors related to your creditworthiness.
American Express offers a more flexible repayment term compared to Truist. You can repay your American Express personal loan for up to 84 months, which is 24 months longer compared to Truist’s max repayment term.
However, a long repayment term is not always desirable for a borrower. While it’s true that you get to enjoy lower monthly installments with a long repayment term, you’ll end up paying more overall. Additionally, loans with shorter repayment terms generally come with lower interest rates.
When choosing your loan’s repayment term, consider your financial priorities and abilities. Ideally, you’ll want to pay off the loan as soon as possible so as to minimize the interest payments you make.
It’s also a good idea to consider the lender’s overall proposal and check other factors before deciding on the loan.
Time to Receive Funds
Truist claims that it can decide on applications within 15 minutes and fund loans within the next day. On the other hand, American Express offers same-day funding.
If funding time is important for you, getting a loan online is the best way to address your needs. You’ll be able to apply, submit requirements, sign the loan agreement and receive funds in the comfort of your home.
Both Truist and American Express feature online loan applications. This helps speed the approval process along.
To ensure a straightforward process, it’s a good idea to prepare your identification and financial documents prior to starting your application.
American Express offers faster funding than Truist. The company boasts that it can fund loans on the same day.
Fast funding times are important to borrowers who urgently need cash. During emergencies, you’ll want to receive the money as fast as possible so you can use it to address the situation.
However, you should still consider a personal loan package based on its overall merits and not just on its funding time.
Final Thoughts
For most people, choosing Truist over American Express is an easy decision.
American Express features a higher maximum APR and a lower loan amount. To make it worse, you need to be a pre-approved American Express card member to become eligible in the first place.
Meanwhile, Truist is a strong choice for most consumers looking for a personal loan. It offers a relatively low APR, an up to $50,000 maximum loan amount and next-day funding. You also get to enjoy additional perks from this lender.
It will only make sense to get an American Express personal loan if you’ve been pre-approved for it and are looking for a flexible repayment term. After all, this lender allows its borrowers to repay loans for up to 84 months.
Nonetheless, keep in mind that our analyses are based on generalizations. Your situation may be different from our sample profiles, so only you can decide who is the best loan provider for you.
Frequently Asked Questions About Personal Loan Lenders
MoneyGeek answered some frequently asked questions about personal loan lenders to help you find the best provider for your needs and budget.
Most of the time, personal loan companies require you to submit your identification, proof of address and income-related documents, such as payslips and tax returns.
You can visit the Annual Credit Report website to get a free credit report that includes your credit score.
Personal loan companies have different ways of determining your rates. Some lenders use soft credit pulls to pre-approve your application. Nonetheless, all personal loan providers conduct hard inquiries before disbursing their loans.
No, the interest rate you’ll receive will vary based on the loan company and your personal profile.
It depends on the loan company. Some lenders don’t charge origination fees. However, it isn’t uncommon to find companies that charge prepayment and late payment fees.
It’s recommended that you apply for a personal loan online. The process is more convenient and faster compared to in-person applications.
Yes, you’re allowed to pay your personal loan early. However, some companies may charge you a fee for doing this. It is advisable to ask your lender about prepayment penalties before making a final decision.
sources
- American Express. "American Express Personal Loans." Accessed September 21, 2022.
- American Express. "Frequently Asked Questions." Accessed September 21, 2022.
- American Express. "Our Business." Accessed September 21, 2022.
- Truist. "About Us." Accessed September 21, 2022.
- Truist. "Payment Relief." Accessed September 21, 2022.
- Truist. "Personal Loans and Lines of Credit." Accessed September 21, 2022.
- USAGov. "Credit Reports and Scores." Accessed September 21, 2022.
The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.
Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about
our editorial policies and expert editorial team.