In a Nutshell
Personal loans from American Express come with competitive interest rates and no origination or prepayment fees. But you have to be an eligible American Express cardholder to apply.Pros
- No origination or prepayment fees
- Quick decision “within seconds,” according to the lender
- APR won’t be higher than the max APR quoted in your preapproval offer
Cons
- Must be an existing eligible cardholder and have an online account
- Limited time to accept a loan offer before it’s withdrawn
What you need to know about an American Express personal loan
American Express offers existing eligible cardholders unsecured personal loans issued by American Express National Bank. The bank offers its personal loans in amounts from $3,500 to $50,000, which you can repay over a term of 12, 24 or 36 months. With competitive interest rates, an Amex personal loan could be a good solution for consolidating high-interest debt.
Here are some other things you should know about American Express personal loans and what to consider if you’re not already an American Express cardholder.
Members only and no perks
American Express limits its personal loan applications to existing eligible cardholders. If you’re not already an American Express cardholder, you may want to consider becoming one if you want to apply for a personal loan with the bank.
Keep in mind that American Express personal loans don’t include the rewards programs and other benefits that can come with an American Express credit card. These loans are primarily designed to help cardholders consolidate debt or fund things like a wedding or home improvement project.
Competitive interest rates
American Express offers competitive personal loan APRs to cardholders. The lender considers factors like your credit history and current financial picture when looking at your application and deciding on the terms of your loan.
If you’re preapproved and then decide to formally apply, your offer APR may be different than your preapproved APR. But Amex says it won’t exceed the maximum APR you were preapproved for.
While American Express doesn’t specify credit score minimums for approval, you must have been approved for at least one of its credit cards before applying for a personal loan. Cardholders with higher credit scores generally qualify for lower APRs — which could help save money long term.
Plenty of restrictions
While you can use an American Express personal loan to plan the ultimate getaway, make home renovations or consolidate credit card debt, there are plenty of restrictions on what you can use your loan for.
For example, you can’t use the loan to fund any postsecondary education expenses, real estate purchases, business costs, securities or vehicle purchases (other than as down payment).
If you need help funding your business, American Express offers business loans to preapproved American Express business cardholders. These loans are restricted to business purposes only.
Fast decision and funding — but you’re also on the clock
The preapproval process for an American Express personal loan is pretty quick — Amex says it typically takes a matter of seconds to get a decision.
If you formally apply and are approved for a loan, you’ll have three days to review and sign your loan agreement. Once you sign your loan agreement, your loan funds should be directly deposited into your bank account within one to three business days.
No origination, application or prepayment fees
American Express personal loans don’t come with origination, application or prepayment fees. But if you’re late on a payment, you’ll be charged a late payment fee of $39.
Who is an American Express personal loan good for?
American Express personal loans may be a good option for Amex cardholders who need to consolidate high-interest credit card balances — as long as those balances aren’t on Amex credit cards.
How to apply for an American Express personal loan
If you’re an eligible American Express cardholder, you can apply for preapproval directly through your online account. Once you log in and answer a few questions, you should receive a decision right away.
Keep in mind that being preapproved doesn’t mean you’ve been approved for an actual loan. If you’re preapproved, you’ll need to complete a full application to find out if you’ll receive a loan offer.
*Approval Odds are not a guarantee of approval. Credit Karma determines Approval Odds by comparing your credit profile to other Credit Karma members who were approved for the personal loan, or whether you meet certain criteria determined by the lender. Of course, there’s no such thing as a sure thing, but knowing your Approval Odds may help you narrow down your choices. For example, you may not be approved because you don’t meet the lender’s “ability to pay standard” after they verify your income and employment; or, you already have the maximum number of accounts with that specific lender.