Best Egg personal loan review: Competitive rates for good credit

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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, and it’s not the most convenient option for debt consolidation, since you’ll have to pay off any creditors on your own.

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Pros Cons
Competitive interest rates 0.99% to 5.99% origination fee
Soft credit inquiry to check rate estimates No direct payments for debt consolidation
No prepayment penalty Credit requirements for lower rates

What you need to know about a Best Egg personal loan

Best Egg is an online lender backed by Marlette Funding. Since launching in 2014, the company has funded more than $7 billion in loans to over 350,000 people.

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 5.99%.

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 5.99% 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.

Best Egg charges a $15 fee for a late payment or returned payment.

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 your first is at least six months old and 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.

No direct payments for debt consolidation

If your main goal with a fixed-rate installment loan is to consolidate your credit card debt or bills into one monthly payment, that’s possible with Best Egg — but it won’t necessarily be the easiest option. That’s because once the money is deposited into your account, you’ll need to pay off your creditors individually.

Compare that with competitors that will directly pay off debts with your loan proceeds when you indicate where the money should go. If you might be tempted to forgo paying off your other debts in full once the money hits your account, this may be a better option for you.

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 Iowa, Vermont or West Virginia, so if you live in one of those states, 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 and have a verifiable personal bank account as well as a valid email address.

Here’s the information you’ll need to provide during the application process.

  • Full name and address
  • Phone number
  • Email address
  • Social Security number
  • Employer
  • Individual income and household income
  • Monthly housing payment
  • Date of birth
  • Loan amount needed
  • Loan reason

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