Best Egg personal loan review: Competitive rates for good credit

Focused young woman working at laptop in officeImage: Focused young woman working at laptop in office

In a Nutshell

Best Egg personal loans offer competitive interest rates, particularly if you have good credit. But origination fees will eat into your loan amount.

Editorial Note: Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our marketing partners don’t review, approve or endorse our editorial content. It’s accurate to the best of our knowledge when posted. Availability of products, features and discounts may vary by state or territory. Read our Editorial Guidelines to learn more about our team.
Advertiser Disclosure

We think it's important for you to understand how we make money. It's pretty simple, actually. The offers for financial products you see on our platform come from companies who pay us. The money we make helps us give you access to free credit scores and reports and helps us create our other great tools and educational materials.

Compensation may factor into how and where products appear on our platform (and in what order). But since we generally make money when you find an offer you like and get, we try to show you offers we think are a good match for you. That's why we provide features like your Approval Odds and savings estimates.

Of course, the offers on our platform don't represent all financial products out there, but our goal is to show you as many great options as we can.

Pros Cons
Competitive interest rates 0.99% to 6.99% origination fee
Soft credit inquiry to check rate estimates Credit requirements for lower rates
No prepayment penalty  

What you need to know about a Best Egg personal loan

Best Egg is an online lender backed by Marlette Funding. Since its 2014 founding, the company has funded more than $10 billion in loans.

Best Egg unsecured personal loans are best for people who have good credit scores and are comfortable working with an online lender. Loan amounts generally range from $2,000 to $35,000.

Best Egg loans can be used for things like debt consolidation, home improvement, medical bills, vacations and more. But even with competitive rates, you’ll need to watch out for the origination fee that ranges from 0.99% to 6.99%.

Origination, processing and late fees

You won’t receive the full amount of the personal loan you’re approved for, because Best Egg deducts an origination fee between 0.99% and 6.99% from the loan balance before depositing the remaining amount in your bank account.

For instance, if you take out a $15,000 loan and have an origination fee of 2.99%, the amount you’d actually receive would be $14,551.50. Make sure to take that into consideration when figuring out how much money you need for your loan.

Keep in mind, not all lenders charge an origination fee. Other lenders offer personal loans without an origination fee — giving you more of the loan amount that you’re approved for.

But if you want to pay off your loan early, you can do so without penalty because Best Egg doesn’t charge a prepayment fee.

Competitive interest rates for good credit

High-earning individuals with good credit will find Best Egg a competitive lending option. Best Egg says it reserves its best rates for people with FICO® credit scores of at least 700 and individual annual income of at least $100,000.

The lender doesn’t approve joint applicants, so you won’t be able to rely on a co-borrower’s income to boost your approval odds or potentially improve your annual percentage rate.

Second loan option

Some lenders only allow you to take out one loan at a time — but Best Egg isn’t one of them. You can be approved for two Best Egg loans at once as long as the combined loan amount isn’t more than $50,000. Best Egg will also consider other factors, such as your payment history.

Before you take on more debt though, be sure you’re comfortable handling the additional financial demands.

Who is a Best Egg loan good for?

If you meet income and credit requirements, Best Egg, with its competitive interest rates, could be a good option for you. But depending on your creditworthiness, you may be able to qualify for a loan without an origination fee with other lenders.

Looking for money quickly for an emergency expense? Unlike some peer-to-peer online lenders that rely on investors to fund your loan, Best Egg funds loans directly. And Best Egg says about half of its customers receive their loan proceeds the next business day.

Best Egg does not offer personal loans to people who live in D.C., Iowa, Vermont or West Virginia, so if you live in one of those areas, you’ll need to apply elsewhere.

How to apply for a Best Egg loan

You can check your potential rate with Best Egg without affecting your credit scores because Best Egg uses a soft inquiry when you apply for prequalification. Keep in mind that prequalification isn’t a loan approval. And if you accept a loan offer, it will produce a hard credit inquiry, which could slightly lower your credit scores.

To apply for a loan offer, you’ll need to be a U.S. citizen or permanent resident living in the U.S., be of legal age to accept a loan in your state, have a verifiable personal bank account and a valid email address.

Before you apply for an auto loan with Best Egg, it’s a good idea to check your credit and compare other loan offers. Understanding your credit can help set expectations — in general, lower credit scores will result in higher interest rates. And shopping around can help you find the best loan rate and terms for your needs.

Not sure a Best Egg personal loan is right for you? Consider these alternatives.


About the author: Ashley Chorpenning is a personal finance writer and content creator. In addition to being a contributing writer at Credit Karma, she writes for solo entrepreneurs and Fortune 500 compani… Read more.