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American Express personal loan amounts and interest rates
American Express allows borrowers to take out personal loans between $3,500 and $40,000. You can get a personal loan in all 50 states and in Washington, DC, and you must have an American Express card to apply for a loan.
APR on American Express loans starts at 5.98%, which is a lower starting point than similar competitors. For example, Discover’s APR range is 6.99% to 24.99%, and Citibank’s APR range is 7.99 to 23.99%.
Advantages and Disadvantages of American Express Personal Loans
Who is American Express for?
American Express is best for borrowers who value a top-notch customer experience, as the company is highly rated by JD Power and the Better Business Bureau. You’ll also be able to get your money fast with American Express, and you can explore what your rates would be without hurting your credit score.
However, American Express may not be the right choice if you want a longer repayment term or only need a small amount of money. You may find another lender that better suits your needs.
American Express Personal Loan Comparison
You could receive your money the very next day with Discover, and you will almost always receive your money within two days from American Express. Citi has longer wait times – it can take up to five business days to receive your money.
You must have an American Express card to apply for a loan, and you must have had a deposit account with Citi for one year to qualify for a loan with this company. Discover has no relationship requirements.
None of the three lenders charge prepayment penalties or origination fees, but all charge late fees. Both American Express and Discover hit borrowers with $39 late fees, while you’ll incur a $25 penalty with Citi.
A unique feature of Discover is its 30-day money-back guarantee. If you decide within 30 days of getting your loan that you no longer want it, you can return the funds by check and you will not be charged interest. This benefit can be useful if you find a lender with a lower rate or end up not needing the loan amount you originally requested.
How American Express Personal Loans Work
American Express offers unsecured personal loans that borrowers can use for a variety of purposes, including home improvement projects, medical bills, and even vacations. Unsecured loans are loans that do not require collateral – such as a house or car for a mortgage or car loan – to obtain.
You must have an American Express card to apply for a personal loan.
You will find the application online and American Express will pre-populate your information with existing data on file, so it will only take a few minutes. Choose between repayment terms of 12 months, 24 months and 36 months.
You won’t pay origination fees or prepayment penalties with the company, but you may be charged $39 for late payment. It will take approximately one to two business days to get your money once your loan is approved.
Customer support is available by phone from 9 a.m. to 8 p.m. ET, Monday through Friday. Help is also available via online chat or the Amex app. The app is well rated on Google Play and Apple Stores.
Is American Express Trustworthy?
American Express has an A+ rating from the Better Business Bureau, a nonprofit organization that focuses on consumer protection and trust. The BBB determines a company’s ratings by evaluating its responses to customer complaints, honesty in advertising and truthfulness in business practices.
Keep in mind that you are not guaranteed to have a good relationship with a lender just because they have a top BBB rating. Tell friends and family about their experience with the company or read customer reviews online.
However, the company has been at the center of a recent scandal. In March 2020, The Wall Street Journal reported that American Express employees tricked and pressured many small business owners into signing up for cards. Former and current employees have alleged that the company checked credit scores against people’s wishes, misrepresented charges and even issued cards that customers hadn’t requested.