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Best Egg Personal Loans 2020 Review

| Money Rates Columnist.
min read

besteggBest Egg is a personal loan provider offering personal loans between $2,000 and $35,000 (up to $50,000 in some cases) for any purpose. This Best Egg review contains the fast facts, pros and cons, and in-depth evaluation so you can confidently choose the best personal loan for your needs.

 

Why Should I Apply With Best Egg?

Why does Best Egg deserve a spot on your short list? Here are some reasons why it might:

  1. Quick turnaround of applications - Some borrowers get their money during the business day following their application
  2. Competitive interest rates - An annual percentage rate (APR) in the 5.99% to 29.99% range, depending on how creditworthy you are
  3. Any purpose - Borrow to improve your home, consolidate your debts, cover medical bills ... or just to indulge yourself
  4. Good for customer satisfaction - Research incorporating several well-regarded national product survey sites indicates that Best Egg clients are very happy with the company.
  5. Low credit score threshold - Worth applying if your score's 640 or better. But this lender is best with creditworthy borrowers
  6. You won't harm your credit score when you request a quote - But, as with every lender, your score is going to take a small hit later in the process, providing you decide to go ahead with your Best Egg application

There's little to dislike. But you do need to watch out for lender fees, including those for origination, late payments and returned payments.

Apply with Best Egg Now

How Does Best Egg Work?

Best Egg is a peer-to-peer (P2P) lender. That means that it doesn't lend its own money. Instead, it introduces borrowers to individuals who wish to lend. Of course, the company facilitates and manages your loan. But it does so on behalf of those private lenders.

If you're an attractive borrower, expect to get multiple offers through the Best Egg website from a number of individuals and syndicates. You can then pick the deal that suits you best.

What Kind of Loans Does Best Egg Offer?

Here's what you need to know to decide whether Best Egg is sunny-side-up for you:

  • Minimum loan amount of just $2,000, usually topping out at $35,000. But ask if you need up to $50,000. And some states impose higher minimum loan amounts: Massachusetts $6,500; New Mexico and Ohio $5,000; and Georgia $3,000
  • APRs that range from 5.99% to 29.99%
  • Loan terms of 36 months or 60 months
  • Minimum credit score of 640
  • Maximum DTI* is not specified - But the best deals may go to those with 40% or less
  • No prepayment fees - So you won't be penalized if you pay back your loan early
  • No co-signers or joint applications - one application, one applicant
  • You can get a quote without harming your credit score, which is a form of prequalifying
  • Fixed rates, meaning every monthly payment is the same as every other
  • Expect an origination fee of 0.99%-5.99% of the amount you borrow - Plus $15 late fees and returned fees if payments don't go through

*DTI = debt-to-income ratio. That's the percentage of your pretax income that goes on servicing your existing debts and obligations. There's a DTI calculator on Best Egg's website.

How to Apply With Best Egg?

Best Egg's application process is conducted online and is very simple. Initially, the company says, you'll be asked for your "name, physical address, email, phone number, date of birth, employment, social security number, and income."

Be sure to provide accurate information because your loan quote is going to be based on the details you provide. And you're very soon going to have to upload documents that prove your claims.

Best Egg says it bases its lending decisions on the information you provide, plus what your credit report says, plus your debt-to-income ratio (see above). It can typically make decisions very quickly.

How Soon Can I Get My Money With Best Egg?

How long does it take to get your money? Well, Best Egg has a reputation for delivering cash very quickly. And many borrowers have the money in their bank accounts on the business day after they finalize their applications.

Some of that quickness depends on you. If you upload the documents you need to support your application (probably proof of identity and income and recent bank statements) quickly, Best Egg can confirm your loan almost instantly. And send your money right away.

So get the paperwork you're likely to need ready before you make your application. It may also be a good idea to avoid peak borrowing periods, such as the holiday season. Oh, and if you've recently had a financial issue - such as a bounced check or a delinquent payment - be ready to explain why.

Best Egg BBB Rating

Best Egg has been an accredited business with the Better Business Bureau since 2014. It currently has an A+ rating, which is the highest the BBB awards.

Exceptionally, there are 2,719 Best Egg customer reviews on the BBB website. And their average rating is the maximum five stars. That's quite an achievement.

Consumer Financial Protection Bureau and Best Egg

In 2019, federal regulator the Consumer Financial Protection Bureau logged 15 entries about Best Egg's installment loans on its consumer complaints database. That's a small number. Most of those complaints related to getting a loan or making payments.

MoneyRates Editorial Best Egg Rating

Star rating 4.5

We're struggling to find things not to like about Best Egg. A compilation of national online review site indicates Best Eggs's customers love it. And its interest rates are competitive and its application turnarounds among the best.

But this is a personal loan review. So, we feel obliged to find a few negatives, no matter how small they are. And there are a couple. First, nobody likes lender fees, and there are ones for origination and late payments. And, secondly, you need to be in reasonable financial shape (fair credit and not too many other debts) when you apply. Because you won't be able to get a co-signer to boost your application.

But, those niggles aside, we're looking at a sea of positives. And the fact that an initial application won't hurt your credit score means this is likely a shoo-in for your short list.

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What Are the Alternatives to Best Egg?

But which other lenders might you consider adding to that short list? Here are some ideas:

LendingClub

This is one of few that permit joint applications. In other words, you can get a more creditworthy co-signer to boost your application's appeal. And, if you're wanting to consolidate your debts, it offers to pay those off directly with transfers to your existing lenders.

Payoff

This lender is all about consolidating your credit card debt. And it provides lots of support (including no late fees) to help you reach your goal. You can borrow up to $35,000 at competitive rates. But you'll likely need fair credit to get approved.

Upgrade

Another of those unusual personal loan lenders that let you make a joint application. So good news if you need a co-signer. But you'll likely need fair credit to get far. And you should watch out for origination and late fees. Still, a good, solid lender.

Prosper

Best for those with solid finances: good or great credit, high incomes and not too many other debts. If that's you, you may be in line for a very good deal indeed.

Sofi

A fee-free option. You shouldn't pay any, including for origination. And you can choose between fixed or variable rates, something that might prove valuable in the current economic environment. But, understandably, you'll need good or great credit to get approved. Loans top out at $100,000 and it may take a few days to get your money - longer if your application's complicated.

Lightstream

Another option if you want a big loan of up to $100,000. And another that charges no fees and low, low rates. But you must borrow at least $5,000. And you'll need a solid credit history going back several years.

How to Find Your Best Personal Loan

Don't assume that you'll get similar quotes from all the lenders you apply to. Yes, your personal profile may remain the same across all your applications. But different lenders specialize in different sorts of borrowers. So you could get a fantastically low rate from one and a much higher one from another.

What does this mean? You need to compare personal loans from multiple lenders. Feel free to approach those that give you a quote without harming your credit score. And apply to others that you're pretty sure from our reviews are likely to like borrowers like you.

Meanwhile, bear in mind two things:

  1. You can get lower rates by improving your creditworthiness during the months leading up to your application - Work on your credit score and pay down as much existing debt as you can
  2. Don't borrow over the long term for short-term benefits - You may not mind in five years' time if you're making your final payment on an engagement ring or debt consolidation. But you're likely to be less happy if you're still paying for 2020's vacation in 2025.

Borrowing is always a big thing. But, with a little thought now, you can make it as painless as possible.

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