Best Egg Personal Loans: 2022 Review

Best Egg is an online lender that offers personal loans for borrowers with fair or good credit.

Best Egg personal loan amounts range from $2,000 to $50,000 (although some states have different minimum amounts), and repayment terms are three or five years. Borrowers can use their loan to consolidate debt or refinance credit cards, but you can also use the loan to cover major expenses.

Best Egg Personal Loans at a Glance

  • Origination: 0.99% – 5.99%.

Pre-qualify with a soft credit check?

Funding delay after approval

Loans not available in IA, VT, WV or Washington, DC

*Trustpilot TrustScore as of June 2020. Best Egg Personal Loans, including the Best Egg Secured Loan, are made by Cross River Bank, a licensed commercial bank in the State of New Jersey, Member FDIC, Equal Housing Lender, or Blue Ridge Bank , a national chartered bank. , FDIC Member, Equal Housing Lender. “Best Egg” is a trademark of Marlette Holdings, Inc., a Delaware corporation. All uses of “Best Egg” refer to “Best Egg Personal Loan”, “Best Egg Secured Loan” and/or “Best Egg on behalf of Cross River Bank or Blue Ridge Bank, as originator of the loan. Best Egg staff. “, depending on the case. The term, amount and APR of any loan we offer to you will depend on your credit score, income, payment obligations, loan amount, credit history and other factors. Your loan agreement will contain specific terms and conditions. About half of our customers receive their money the next day. After successful verification, your money can be deposited into your bank account within 1-3 business days. The timing of funds available upon loan approval may vary depending on your bank’s policies. Loan amounts range from $2,000 to $50,000. Massachusetts residents have a minimum loan amount of $6,500; New Mexico and Ohio, $5,000; and Georgia, $3,000. For a second Best Egg loan, the total balance of your existing Best Egg loan cannot exceed $50,000. Annual Percentage Rates (APR) range from 4.99% to 35.99%. APR is the cost of credit as an annual rate and reflects both your interest rate and an origination fee of 0.99% to 5.99% of your loan amount, which will be deducted from any proceeds of the loan you receive. The origination fee on a loan with a term of 4 years or more will be at least 4.99%. The term of your loan will impact your APR, which may be higher than our lowest advertised rate. You need a minimum FICO® score of 700 and a minimum individual annual income of $100,000 to qualify for our lowest APR. To help the government combat the financing of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver’s license or other identification documents.

Learn more about the best egg:

Where Best Egg Loans Stand Out

Offers direct payment to creditors on debt consolidation loans: Best Egg sends loan payments directly to creditors on debt consolidation loans for committed borrowers. This feature takes the work of repaying individual creditors out of the hands of borrowers and eliminates the temptation to spend the money elsewhere.

Wide range of loan amount: Borrowers have the option of taking out loans from $2,000 to $50,000, giving you the flexibility to cover smaller or larger expenses associated with events like moving, home improvement projects, or weddings.

Guaranteed loans: Best Egg offers both unsecured and secured personal loans. The guaranteed loan is similar to a home equity loan, but it uses appliances permanently attached to your home, like your water heater, ceiling fans, or window shutters, as collateral instead of your entire home. Once approved, you can receive funding in one to three days. If a borrower defaults on the loan, Best Egg can repossess the collateral.

Free access to credit score: Personal loan customers can access their credit score through their Best Egg account, allowing borrowers to see how on-time payments are benefiting their credit score over time.

Where Best Egg Loans Fall Short

No discounts: Unlike other lenders, Best Egg does not offer an additional rate reduction for setting up automatic payments. Other lenders generally reduce interest rates by 0.25 to 0.5 percentage points to encourage borrowers to choose automatic payments.

Creation costs: Best Egg charges setup fees ranging from 0.99% to 5.99%. Not all lenders charge an origination fee, but Best Egg’s fee is low compared to other lenders who charge one.

No mobile app: Best Egg does not offer a mobile application to manage your loan. Many online lenders have mobile apps where borrowers can make payments and track the progress of their loans.

How to Qualify for a Best Egg Personal Loan

  • Minimum credit score: 600.

  • Minimum annual income: $3,500.

  • Minimum debt ratio: 40% or 65% including a mortgage.

  • Employment: Must provide proof of income; part-time employees are eligible.

  • Must provide a valid US address and social security number.

How are personal loan rates determined?

Annual percentage rates on personal loans vary widely, typically from around 6% to 36%. Lenders consider many factors in a loan decision, all with the aim of measuring the risk a borrower may present.

The three most common factors in deciding a rate are:

Lenders may also consider the amount and term of the loan. Typically, the lowest APRs are assigned to borrowers with high credit scores, strong incomes, and little existing debt. Here are the average annual percentage rates on personal loans by credit score:

26.1% (lowest scores are unlikely to qualify).

Source: Average rates are based on aggregated and anonymized bid data from pre-qualified users in NerdWallet’s Lender Marketplace from October 27, 2021 to April 27, 2022. Rates are estimates only and are not specific to any lender. The information in this table only applies to lenders with an APR of less than 36%.

Calculate the monthly payments of your personal loan

How to Apply for a Best Egg Personal Loan

Here are the steps to apply for a Best Egg loan.

  1. Pre-qualified on the Best Egg website. You will be asked how much you want to borrow and what the funds are used for, along with personal information such as your name, date of birth and address. Next, the lender will ask you for information about your income, employment, and whether you own your home before they can preview loan offers. There is no hard credit at this point.

  2. Preview loan offers and accept the one that fits your budget. Once you are ready to accept a loan offer, you will submit a formal application personal loan application. This might require more documentation, like W-2s, pay stubs, and bank statements to confirm the information you provided during pre-qualification. Best Egg will also perform a rigorous credit check when you apply, so your credit score may temporarily drop.

  3. Make a plan to repay the loan. Best Egg reports payment to the three major credit bureaus, so on-time payments will help build your credit score, but missed payments will hurt it. Setting up automatic payments and keeping tabs on your budget are two ways to manage your loan repayments.

Compare Best Egg Personal Loans

Compare Best Egg with other lenders to decide which is right for you. Lenders offer different rates, loan amounts, and special features, so it pays to weigh the alternatives.

Best egg against prosperity

Like Best Egg, Prosper personal loans are suitable for borrowers with fair or good credit (630 to 719 FICO). Prosper offers similar loan amounts and repayment term options, but may take longer to fund a loan. Unlike Best Egg, Prosper doesn’t directly pay your other creditors when you get a debt consolidation loan.

Best egg against Marcus

A Marcus personal loan is ideal for debt consolidation. Unlike Best Egg, Marcus charges no fees, offers a rate discount for setting up automatic payments, and offers nine different repayment term options. Marcus is looking for a borrower with slightly better credit than Best Egg.

Key terms to know about personal loans

The annual percentage rate is the interest rate on your loan plus all fees, calculated on an annual basis and expressed as a percentage. Use the APR to compare loan costs from multiple lenders.

A assembly costs These are one-time upfront fees that some lenders charge for processing a loan. Fees can range from 1% to 10% of the loan amount, and lenders typically deduct them from your loan proceeds.

the debt to income ratio Divide your total monthly debt payments by your gross monthly income, giving you a percentage. Lenders use DTI — along with credit history and other factors — to assess a borrower’s financial ability to repay a loan.

Lenders who offer prequalification generally do so using a soft credit check, which lets you see the rates and terms you qualify for without affecting your credit score. If you accept the loan offer, the lender will perform a thorough check to confirm your information. Serious checks cause your credit score to drop a few points.

How We Rate Best Egg Loans

NerdWallet’s editorial team evaluates and ranks traditional lenders in four categories. The maximum score a lender can obtain in each category is five. Here’s how Best Egg ranks in each category:

Affordability: An affordable loan includes competitive rates, no origination or prepayment fees, and rate discounts for automatic payments.

Transparency: A transparent lender includes flexible credit checks and credit reports, as well as clearly presented rates, terms and fees.

Loan flexibility: A flexible loan includes options to change payment due dates; several types of loans, amounts and conditions; and refinancing options.

Client experience: A good customer experience includes available and convenient customer support, mobile apps, and financial education.

Ready to apply? Click the button below and head to the Best Egg website to pre-qualify.

About Judith J. George

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