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Best Egg offers competitive personal loans in amounts as small as $2,000 or as large as $50,000. They’re particularly well-regarded for their long-term loans, which can be as long as 60 months.
The main market for Best Egg is individuals with fair to moderate credit. They even offer secured loans to help you get a better rate.
Here’s a guide to what Best Egg has to offer and how their personal loan works.
Best Egg provides secured and unsecured personal loans to individuals with a FICO score of 600 or better.
That said, as with most loan services, better credit will get you better rates. If you want to get the minimum APR, you’ll need to have a score of at least 700, and you’ll need to earn at least $100,000 a year. If you qualify, the 5.99% minimum APR is one of the lowest out there.
This is a modern company, who embraces the digital revolution rather than brick and mortar. They provide all of their services online and can provide funding in as little as one business day.
Best Egg’s loan process is relatively simple. You apply and get approved online, and the loan is sent to your bank account as a direct transfer.
The APR is highly variable, depending on your credit rating. It can be as low as 5.99% or as high as 29.99%.
You also get flexibility in terms of dollar amount and loan term. You can borrow for anywhere from three to five years, and you can borrow between $2,000 and $35,000. In some states, the maximum loan amount is $50,000.
You can have up to two loans simultaneously, but the combined value cannot be more than $50,000.
One thing you’ll very much appreciate is that Best Egg’s loans have no prepayment penalty. If you want to pay the loan off early, you’ll only benefit from the saved interest payments.
Unfortunately, the origination fee can potentially be fairly steep. The minimum fee of 0.99% is quite reasonable.
However, the maximum rate of 5.99% is higher than most. Worse yet, for loans with a term of four years or longer, the fee is a minimum of 4.99%.
The origination fee is charged on day one as a chunk of the loan money. For example, if you borrow $20,000 with a 4% origination fee, you’ll actually receive only $19,200 in cash. Keep this in mind when you’re deciding how much to borrow. Otherwise, you might come up short.
The funds from a Best Egg loan can be used for pretty much anything you want. This is a personal loan, not a mortgage or a car loan.
You can use the money for fixing your house or performing a major upgrade. You can use it to pay for moving expenses, cover the costs of a baby, or pay off medical bills. You can even take a vacation if you really want to.
That said, there are a handful of prohibited categories. Because this is a personal loan, you’re not allowed to use the money for business purposes – that would require a business loan. You also can’t use it to pay directly for college.
If you need a loan because of an emergency, you don’t want to wait for weeks to get your money. You can’t afford to.
Best Egg loans normally payout within a single business day. This is ideal, and there are exceptions.
For example, if you’re self-employed, final approval can take an extra couple of business days. But even so, you’re talking about a turnaround time of a week or less.
Many personal loan providers require a credit rating of 700 or higher. If you only have moderate credit, this can leave you out in the cold.
On the other hand, you can qualify for a Best Egg personal loan with a score as low as 600. That said, borrowers with fair credit will normally need to pay a higher APR. This means you’ll spend a lot more money to get the same loan.
One benefit of Best Egg is that they offer secured as well as unsecured loans. A secured loan is similar to a home equity loan in that you put up assets in exchange for collateral.
However, you don’t put up your home itself. Instead, you put up appliances and other major fixtures as security.
When you secure your loan, you get a lower interest rate, and potentially, a higher loan amount. Exactly what you get will depend on your individual circumstances.
Best Egg’s application and account management system is entirely online. Not only that, but they provide six days a week customer support, both on the web and over the phone.
To be eligible for a Best Egg personal loan, you’ll need to be a US citizen or permanent resident who is a legal adult.
You’ll also need to have a US checking account. You can qualify for a Best Egg loan with a score of 600 or better. That said, you’ll only get the best rates if you have a score of 700 or higher and an income of $100,000 or more.
There are also a couple of additional requirements. First, you’ll need to have at least three years’ worth of credit history in the US.
You’ll need to have three open accounts, none of which can have delinquent payments. Finally, you won’t qualify if you’ve filed bankruptcy within the next decade or if you’re under a tax lien.
The Best Egg application process is as quick and easy as they come. You enter some personal information on their website, along with the amount of money you want to borrow.
At this point, Best Egg will run a soft credit check, which won’t affect your credit score. Provided you’re pre-approved, you’ll soon see offers for 36- and 60-month loan packages.
If you accept one of their offers, Best Egg will now run a hard credit check before the loan is complete. Unlike the soft check, this one will affect your score, but only slightly.
And provided you’re approved, your score should soon recover. During this phase, you may also need to upload proof of income or a copy of your ID. Upon finalization of your loan, the money will be transferred directly to your bank account.
Payoff is a personal loan company that provides service primarily to people who already carry high-interest debt.
The idea is simple. You take out a low-interest Payoff loan, and you use it to pay off your outstanding high-interest loans. On balance, you can save a boatload of money.
When you sign up for Payoff, you also get access to the services of Happy Money, their parent company. This is a general-purpose financial management service that helps you meet all your goals.
>> More: Payoff Personal Loans Review
While Best Egg is designed for people with fair credit, Upstart is made for people with little or no credit.
This service provides a valid way to get the money you need to cover your short-term expenses if you’re in need.
The downside is that you’ll generally have a higher APR than you would with Best Egg. So if you’ve got the track record, Best Egg will probably be a better value.
>> More: Upstart Personal Loans Review
Upgrade is designed for people who don’t have a high enough credit score to qualify for Best Egg. This can be a lifesaver if you’ve made a few mistakes in the past and you need to borrow some money.
The two companies have similar APR ranges in general. That said, if you’ve got a lower credit score, you can expect to pay close to the maximum.
>> More: Upgrade Personal Loans Review
Avant is similar to Best Egg in that it requires a minimum credit score of 600. The APR range is like Best Egg, although the maximum loan amount is only $35,000.
That said, it’s worth applying to both services to see who makes you the better offer.
>> More: Avant Personal Loans Review
Yes. There is no penalty or other fee for paying off your loan early.
No. At this time, Best Egg only offers loans to individuals.
It depends, but very quickly. You can get your payment in as little as one day after being approved.
Yes, Best Egg is a legitimate company, and they currently maintain an A+ rating with the Better Business Bureau. They have an “excellent” rating on Trustpilot and a 5-star customer support rating from US News and World Report. If that doesn’t make them a legitimate company, it’s tough to say what would.
Yes, Best Egg is safe to use. In 2020, the last complete year of reporting, there were a total of eight complaints levied against Best Egg with the CFPB. Some of these were from people who were upset that they couldn’t get approved. All complaints have been closed, and Best Egg responded to all of them in a “timely” manner.
Best Egg is a good personal loan provider for people with moderately good credit. It offers potentially low-interest rates, although the maximum rate is higher than we would have liked. That said, you can always get a better rate by using your home as collateral.
Outside of the steep origination fees, we didn’t really have many complaints. To be fair, you could get better perks with another program, but programs with more perks tend to require a higher credit rating. If your rating falls in the 600 to 700 range, Best Egg is one lender you should definitely consider.
Kim Pinnelli is a Senior Writer, Editor, & Product Analyst with a Bachelor’s Degree in Finance from the University of Illinois at Chicago. She has been a professional financial writer for over 15 years, and has appeared in a myriad of industry leading financial media outlets. Leveraging her personal experience, Kim is committed to helping people take charge of their personal finances and make simple financial decisions.
