Best Egg offers unsecured personal loans to consumers who want to consolidate debt, buy a car, make home repairs or just take a much-needed vacation. Continue reading to learn whether a Best Egg personal loan could be a smart move for you.
What is Best Egg and what do they do?
Best Egg is a website that helps borrowers find personal loans, which they can use for a variety of purposes.
It was launched in 2014 as a trademark of Marlette Funding LLC, which is headquartered in Wilmington, Delaware, and serves customers in 46 states (including the District of Columbia).
Since its founding in 2014, Best Egg has originated more than $5.3 billion in personal loans to more than 300,000 individual borrowers.
Best Egg personal loans are ultimately issued by the New Jersey-based Cross River Bank, which specializes in partnering with websites in order to provide loans to borrowers. Some of Cross River Bank’s other partners include Pave, Upstart, LendingUSA, Affirm, New Credit America, Vouch, Health Credit Services, ApplePie Capital, and Promise Financial.
According to their website, Best Egg’s personal loan application can be completed in a matter of minutes and approved and funded in as little as one business day. If you’re approved, the money is deposited electronically into your bank account.
How to apply for a Best Egg loan
If you want to apply for a Best Egg personal loan, you’ll need to do so through their online application.
To begin, you’ll need to enter your email address and offer code (if you received one in the mail).
Once you’ve done so, you’ll be asked to provide more detailed information, including:
- Your reason for needing a loan: Whether for credit card or personal loan refinancing, debt consolidation, home improvement, a major purchase, business expense, vacation, moving or relocation expenses, taxes, or debt relief
- The amount of money needed
- Your name and address
- Your date of birth
Clicking continue will bring you to the next step in the process, which includes filling in your financial information, such as:
- Employment status: Including information about your employer (if you are not self-employed)
- Individual gross income: Before taxes
- Household income: If it differs from your individual income
- Social Security Number
- Home type: Whether owned, mortgaged, or rented
- Monthly housing payment: Whether a rent payment or mortgage payment
Continuing at this point will enable Best Egg to check your rates and tailor a loan offer for you — this process will not impact your credit score, as this is just a soft credit check.
This will be presented to you as either the “Best Value” option (which comes with lower rates and shorter payment term, but higher monthly payments) or the “Lower Payments” option (which comes with lower monthly payments, but a longer term and higher interest rates).
If you choose to accept a personal loan offered to you by Best Egg, you may be asked to provide some additional documents to verify the information on your application (though not everyone will be asked to do so).
These may include:
- A voided check: To confirm that your checking account is valid
- Your last pay stub and W-2 or tax return: To verify your income
- U.S. passport, U.S. birth certificate, green card, or certificate of naturalization: To verify your residency in the United States
- Driver’s license, passport, or federal or state ID: To verify your identity
- Copy of a utility bill or federal or state ID: To verify your address
- Copy of last pay stub: To verify current employment
If you qualify for a Best Egg loan, the funds could be deposited into your bank account in as little as one business day, though three to five days is more likely.
Best Egg eligibility
In order to qualify for a personal loan through Best Egg, you must:
- Be a U.S. citizen currently living in the U.S., or a permanent resident
- Be of legal age to accept a loan in the state you live in
- Have a verifiable bank account (with a routing number)
- Have a valid email address
Best Egg does not currently originate loans for borrowers in Iowa, Vermont, or West Virginia, so if you live in those states you will need to find a different lender.
In addition to these eligibility requirements, Best Egg will take a number of other factors into account when deciding whether or not to approve you as a borrower. The most important of these factors, according to the company, include:
- The information you provide on your loan application
- You credit report
- Your debt-to-income ratio (how much money you currently owe compared to how much money you make)
In order to qualify for Best Egg’s lowest rates, you’ll need a FICO score of at least 700 and an annual income of at least $100,000. Generally speaking, the higher your credit score and the lower your debt-to-income ratio, the higher the chances are that you’ll be approved (and the lower your interest rates will be upon acceptance).
You can have up to two personal loans from Best Egg at any given time. If you wish to qualify for a second loan, your first loan must be open for at least six months, and the total balance across all of your Best Egg loans cannot exceed $50,000.
Best Egg Personal Loan Details
Best Egg offers loans ranging from $2,000 to $35,000, though the minimum amount that you can borrow may depend on the state in which you live.
There’s a $6,000 borrowing minimum for Massachusetts residents, for example, while those living in Georgia must borrow at least $3,000.
Some borrowers may qualify for a maximum of up to $50,000 if they have received an offer letter by mail. Without a preapproved offer, Best Egg personal loans typically top out at $35,000.
Other terms of your loan may also depend on your state of residence, including the fees that you’re required to pay.
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Best Egg interest rates and terms
Best Egg offers a broad range of interest rates that are ultimately based on a number of factors, including your credit history, repayment term, and debt-to-income ratio.
That being said, the interest rates for a Best Egg personal loan can start as low as 5.99% for qualified applicants—though they can go as high as 29.99%. These rates are fixed, so whatever rate you agree to when you accept your loan is the rate that you’ll pay throughout the life of the loan.
On the low end, these rates are extremely affordable and much less expensive than you might find by turning to a credit card or payday lender. On the high end, though, the rates are less competitive. As unsecured loans (loans not requiring collateral) this is to be expected.
Loan terms are either 36 or 60 months (3–5 years). Generally speaking, opting for the shorter repayment period will increase your monthly payments, but allow you to save more money compared to the longer repayment period, which generally comes with higher interest rates.
Best Egg fees
You will pay absolutely nothing if you use Best Egg’s online application portal to check your rates. But if you do decide to accept a personal loan offered by Best Egg, there are some fees that you’ll be required to pay.
- Loan origination fee: This can range from .99%–5.99%. If you opt into a 5-year loan, your origination fee will be at least 4.99%. This fee is taken out of the sum of your loan, so you should keep this in mind while applying; ultimately, you’ll need to borrow more than you think, in order to cover the origination fee. Generally speaking, the higher your APR, the higher your origination fee will be, though some other factors (including your state of residence) may come into play.
- Late Fee: If you do not make your payment within three days of the payment due date, Best Egg will charge you a late fee of $15
- Returned Payment Fee: Is you make a payment which is denied (for example, due to insufficient funds or a returned check), Best Egg will charge you a fee of $15
- Processing Fee: If you are not enrolled in automatic payments, Best Egg may charge you a processing fee of $7 on each payment
Despite these fees, there’s one bit of good news — Best Egg will never charge you a prepayment fee. This means that you can pay your loan off as soon as you wish, without owing the company money for early payoff.
You can make payments for your Best Egg loan in a number of ways, including online, by phone, by mail, and by signing up for automatic payments.
Best Egg reserves the right to charge a $7 processing fee for every payment not made through autopay, which can add up quickly. Generally speaking, in order to save money and avoid late fees and missed payments, it’s best to sign up for automatic payments.
You can pay off your loan any time ahead of schedule without worrying about prepayment penalties or fees.
Best Egg customer assistance
If you need to contact a Best Egg customer service representative, you can do so in a number of ways:
- Online: By logging into your online account
- Phone: 1-855-282-6353
- Mail: by sending correspondence to 1523 Concord Pike, Suite 201, Wilmington, DE 19803
You can also use Best Egg’s Help Center, a database of frequently asked questions designed to help you find the information you need quickly, and without needing to speak to a representative.
Best Egg personal loan review
Best Egg is accredited with the Better Business Bureau and has an “A+” rating from the Wilmington, Delaware chapter of the BBB.
Factors that raised Best Egg’s rating include a relatively low number of complaints received for a business its size, more than 1,450 positive reviews, as well as the company’s commitment to resolving any complaints they do receive.
As of December 2015, the Bureau had closed 140 complaints lodged against Best Egg, including 56 related to advertising or sales issues, 30 related to billing or collections, and 51 linked to issues with loan products.
Most of the complaints concerning advertising or sales involved unwanted solicitations for a loan. Some consumers filing complains about loan products said they were approved at a higher rate than they were originally quoted.
Best Egg has received more than 1,600 consumer reviews listed on its BBB profile, 1,479 of which are positive. Nineteen are listed as neutral, and the remaining 61 are negative. Negative reviews echoed the issues in the complaints.
Other sites reviewing Best Egg include Credit Karma, which ranks the company 4.8 out of 5 stars, and Consumer Affairs, which gives the company a score just shy of a perfect 5 stars.
Pros of a Best Egg Personal Loan
Some of the benefits that Best Egg offers borrowers include:
- Instant credit decision: Applying for a Best Egg personal loan takes just minutes, and you’ll know instantly if you are pre-approved
- Possible next-day funding: If you are approved for a loan and accept it, it is possible to have the funds deposited directly into your bank account in as little as one business day (though 3–5 days is more typical)
- Loans ranging from $2,000 to $35,000 (and up to $50,000 for some borrowers): You can borrow the exact amount that you need, though minimums do vary by state
- Competitive rates: Borrowers with good and excellent credit, adequate income, and an attractive debt-to-income ratio can qualify for some truly competitive interest rates
- Ability to have more than one loan: Borrowers can hold up to two Best Egg personal loans at a time, though the first loan must be open for at least six months in order for a borrower to qualify for a second loan
- Autopay options: You can sign up for autopay to make paying your loan as easy as possible so you never incur a late fee
- No prepayment penalty: If you ever decide that you’d like to pay off your Best Egg loan ahead of schedule, you’ll never pay any prepayment penalties or fees
- Fixed interest rates: Best Egg’s loans come with fixed interest rates, meaning your rates will never increase over the life of your loan, regardless of changes happening in the credit market
Cons of a Best Egg personal Loan
Though Best Egg does a lot of things right, there are some negatives that you should keep in mind before accepting a Best Egg personal Loan offer, including:
- High-interest rates for borrowers with poor credit: Borrowers with lower credit can likely find more competitive rates with other lenders
- High-income requirements: In order to qualify for any loan from Best Egg, you’ll need an annual income of at least $50,000
- Stringent requirements for the best rates: In order to qualify for the best rates that Best Egg offers, you’ll need a minimum FICO score of 700, and a minimum annual income of at least $100,000, which likely put the best rates out of reach for the vast majority of borrowers
- Origination fee: You will be required to pay an origination fee of .99%–5.99% of your total loan amount, depending on the terms of your loan
- Payment processing fee: If you do not sign up for autopay, Best Egg may choose to charge you a $7 fee to process each individual payment you submit. Do yourself a favor and sign up for autopay
- Limited term options: Though many lenders offer a range of payment terms, Best Egg offers only two: you can choose between three-year or five-year loans
- Does not service all states: Best Egg does not currently originate loans for borrowers in Iowa, Vermont, or West Virginia
Is Best Egg a good choice?
If you’ve been turned down for a personal loan with a traditional bank or peer-to-peer lender, you might have an easier time getting approved with Best Egg.
The trade-off is that you’re likely to pay a higher interest rate on what you borrow, and you’ll incur a number of fees, including an origination fee.
Ultimately, you should compare rates and terms from multiple lenders before applying with Best Egg to make sure it’s the best deal.