Since its founding in 2014, Best Egg has provided more than $11 billion in unsecured personal loans to customers across 47 states. The lender has an A+ rating with the Better Business Bureau (BBB) and has excellent customer reviews on its BBB page.
While borrowers may qualify with a credit score of 640, they’ll need a FICO score of at least 700 and a minimum income of $100,000 a year to get the best personal loan rates. Those who qualify may borrow up to $50,000 (exact loan limits may vary by state) to pay for just about any type of expense, from debt consolidation to credit card refinancing and funding big expenses.
After applying online, you’ll find out whether you’re approved within minutes — and the lender says about half of its customers get their funds the very next day. Here’s what to know about Best Egg before applying for a personal loan.
What to Know Before Getting a Personal Loan
A personal loan is a catch-all financial product that can help you quickly access cash. But before applying, it’s important to figure out how you’ll use the personal loan funds, whether your budget can fit a monthly personal loan payment, and how you’ll pay off the balance.
When you’re ready to shop for loans, compare interest rates, loan amounts, loan terms, and any fees that may apply, such as origination fees. Some lenders will let you pre-qualify for a loan or check your rate with only a soft credit inquiry, which won’t affect your credit score. Keep in mind: The rate you receive may differ slightly from the advertised rates because rates and loan terms are based on your financial and credit profile.
Most personal loans are unsecured, which means you won’t need to put down collateral to qualify for the loan. Secured loans may offer lower interest rates, but they come with more risk because you could lose your collateral if you fall behind on payments.
Alternatives to Personal Loans
- A home equity loan, home equity line of credit (HELOC), or a cash-out refinance. These financing methods allow homeowners to borrow money by tapping their home equity. Because these loans are secured by the borrower’s home, interest rates are usually lower than rates on an unsecured personal loan. You also might be able to borrow more with a home equity loan or line of credit compared to a personal loan. But there’s a pretty big drawback as well: If you fall behind on payments, the lender can start foreclosure proceedings and take your home.
- A balance transfer credit card. Some credit cards offer introductory annual percentage rates of 0% for a set amount of time, usually 15 to 18 months. The interest rate typically rises once the promotional period ends. This could be a good option if you want to consolidate debt and pay down the balance over time without paying interest. But it’s important to create a plan to pay off the balance before the end of the introductory period. Otherwise, you’ll be on the hook for higher credit card APRs.
- Personal savings. If your money needs aren’t urgent, consider saving for your big purchase over time. Paying in cash won’t ding your credit, and you also won’t have to pay interest as you would with a personal loan. Building an emergency fund can help you avoid needing to take out loans to cover unexpected expenses in the future.
- Credit counseling. Credit counseling could be a good option if you don’t qualify for a personal loan and you need help managing your finances. Look for a nonprofit organization that offers free or low-cost credit counseling to get you back on track. These organizations won’t provide you with money directly, but they can provide expert financial advice and direct you to other resources that may be able to help.
Pros and Cons of Best Egg
Funds loans within one to three business days
Rates are competitive among fair-credit lenders
You can check your rate without impacting your credit score
Charges an origination fee of 0.99%–5.99% of loan amount
Offers only two repayment terms: 3 years or 5 years
The bank that originates Best Egg’s loans, Cross River Bank, has a history of consumer complaints
Loans not available in Iowa, Vermont, West Virginia, Washington D.C., and U.S. territories
Best Egg Compared to Other Lenders
|Loan Term Range||3 or 5 years||2 to 5 years||3 or 5 years|
|Loan Amount||$2,000–$50,000; (loan limits may vary by state)||$5,000–$40,000||$2,000–$40,000|
|Credit Score Needed||640||640||640|
|Origination Fee||0.99%–5.99% of loan amount||0%–5%||2.41%–5%|
|Unsecured or Secured Debt||Unsecured and Secured options||Unsecured||Unsecured|
How to Qualify for a Best Egg Loan
To qualify for a Best Egg personal loan, you must have a credit score of at least 640. This is in the “fair” credit range, according to credit bureau Experian. But a Best Egg representative said the lender will consider your overall financial situation, including your income and employment status, when reviewing your loan application. A low debt-to-income ratio may improve your chances of qualifying.
In addition to the credit requirements, Best Egg also says borrowers will need to:
- Be a U.S. citizen or permanent resident currently living in the U.S.
- Have a job.
- Provide a valid address.
- Show identification.
- Supply proof of income.
- Meet debt-to-income requirements.
Best Egg loans are not available to residents of Iowa, Vermont, West Virginia, the District of Columbia, or U.S. Territories.
Who Should Get a Best Egg Loan
Best Egg offers unsecured personal loans with a minimum credit score requirement of 640, making it a good option for those who don’t have good or excellent credit but also want to avoid secured loans. That said, only having the minimum credit score could mean getting a higher interest rate. Borrowers need a credit score of at least 700 and an income of $100,000 or higher to get the best rates.
If you’re not sure whether you qualify, Best Egg’s “check rate” feature makes it easy to find out — without impacting your credit. You’ll be able to look over your interest rate, monthly payment, and loan term before actually applying.
You can use Best Egg personal loans for many types of expenses, including debt consolidation, home improvements, moving expenses, and adoption fees. But since Best Egg only offers two loan terms — 3 years and 5 years — those who want more flexibility when it comes to their payoff schedule might want to consider other lenders.
Best Egg is also one of the few lenders who offer secured loans in addition to unsecured loans. Best Egg secured loans use your home fixtures — things permanently attached to your home, like window shutters or built-in bookshelves — as collateral. Best Egg secured loans don’t use your home itself as collateral, though. While secured loans may provide an alternate option for those who can’t qualify for an unsecured loan, you should carefully consider the benefits and risks before taking out a secured loan.
While this may not be representative of the Best Egg brand, it’s worth noting that the bank that originates Best Egg’s loans, Cross River Bank, has a history of consumer complaints with the BBB. However, Best Egg itself is BBB accredited, has an A+ rating from the BBB, and has generally positive customer reviews on its BBB page.
How to Apply for a Best Egg Loan
Before applying for a personal loan, first decide whether this method of financing is right for you. Other options, such as a balance transfer credit card or home equity loan, might be a better fit. It depends on what you qualify for and your financial needs.
If you’ve already decided that a personal loan is a good fit for you, here’s how to get one from Best Egg:
- Check your rate. Fill out Best Egg’s application form to see what kind of rates you can get based on your income, employment status, and credit history. This type of check won’t initiate a hard inquiry, which means it won’t affect your credit score. You’ll need to provide your personal information (including your name, birthdate, address, and phone number), the amount you need to borrow, and details about your finances.
- Select an offer. If you qualify for a loan, Best Egg will show you a list of offers based on the information you provided. Select an offer that best fits your needs.
- Submit your application and verify your information. Once you read through the terms and hit the “submit” button, the lender will perform a hard inquiry on your credit. You may need to provide documentation and allow access to your bank accounts to verify the information you included in the application.
- Receive the funds. After Best Egg verifies your information, you’ll receive the money in your bank account within one to three business days. The lender says about half of its approved customers receive their loan funds the next business day.
Best Egg FAQs
Is Best Egg good for personal loans?
Best Egg could be a good lender for people with fair to excellent credit, but watch out for the origination fee and potentially high APRs. It’s a good idea to check your rate and compare other lenders before applying.
The lender also tends to do well with customer satisfaction. Best Egg received favorable customer reviews on its Better Business Bureau page and earned a 95% customer satisfaction rating in a survey from early 2021. However, it’s worth noting that while Best Egg itself has positive consumer reviews, the bank that originates its loans, Cross River Bank, has a history of consumer complaints. Cross River Bank is a separate company from Best Egg, and their issues may not be representative of the Best Egg brand.
What credit score do you need for a Best Egg loan?
Borrowers need a credit score of at least 640 to qualify for a Best Egg personal loan, and a minimum score of 700 to qualify for the lowest rates.
Can I get a Best Egg personal loan with bad credit?
You might not qualify for a Best Egg personal loan with a credit score lower than 640. If your credit score is on the lower end but you need to borrow money, check out NextAdvisor’s list of best personal loans for bad credit.
Does a Best Egg loan hurt your credit?
Taking out any type of personal loan may influence your credit in a couple of ways. The loan application could result in a hard inquiry, which can knock a few points off your credit score. But getting a personal loan may improve your credit mix, which could help your credit score. Additionally, making consistent on-time payments could also improve your credit in the long term.