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Best Egg Personal Loans: 2019 Comprehensive Review

Bankrate logo Bankrate 4/4/2019 Robin Saks Frankel
a screenshot of a social media post: Best Egg personal loans: 2017 comprehensive review© Provided by Bankrate, LLC Best Egg personal loans: 2017 comprehensive review

Best Egg offers unsecured personal loans to high-income borrowers with good to excellent credit. Qualifying borrowers will receive quick funding, often in as little as one day. Because the process is entirely virtual, there are fewer underwriting costs. As a result, Best Egg may be able to offer better interest rates and fewer fees than other lenders.

Best Egg's personal loans are ideal for consolidating debt or funding major expenses. (Borrowers cannot use loans toward educational expenses.) High-income borrowers looking for quick loans will find a competitive lender in Best Egg.

  • Who is a Best Egg personal loan good for?
  • Lending terms
  • Minimum borrower requirements
  • Fees and penalties
  • How to apply
  • What to do if you’re turned down

Get pre-qualified

Answer a few questions to see which personal loans you pre-qualify for. The process is quick and easy, and it will not impact your credit score.

Get Started

Who is a Best Egg personal loan good for?

  • Anyone with good to excellent credit. Best Egg borrowers have an average credit score of 700. Check your credit score for free before you apply.
  • High-income earners. Best Egg seeks borrowers with an average annual income of at least $100,000. Real median household income in the U.S. is about $61,372.
  • Someone who may not qualify for a traditional bank loan. Even if you have significant debt, Best Egg might be able to find a loan for you that a traditional bank may not. Calculate your debt-to-income ratio before applying.
  • Someone who doesn't mind an entirely online experience. The entire process takes place online, from applying for a loan to receiving approval to having the money deposited in your bank account if you are funded.
  • A borrower who wants fast funding. Best Egg funds more than half of its loans within a day of application, and those funds are deposited directly in your account.
  • Someone who wants more than one loan at once. If you currently have a personal loan with Best Egg that is in good standing, you're eligible to have a second loan as long as the borrowed total of both loans is less than $50,000.

Who should not accept a loan?

  • Anyone with fair or poor credit. If your credit score is under 640, Best Egg may not approve your loan request.
  • Anyone who prefers a personal experience. Because the process is virtual, you won't be able to speak face to face with a Best Egg representative.
  • Anyone looking for a loan over $50,000. Best Egg borrowers cannot have an outstanding balance totaling over $50,000.
  • Anyone with a low annual income. The higher your income, the more Best Egg will let you borrow. The average annual income for Best Egg borrowers is $80,000.

Consider applying for a balance transfer credit card or a home equity loan if either one of those offers more favorable terms.

If you have excellent credit and a high annual income, you may be able to find another marketplace lender who will offer you a lower interest rate, so it’s worthwhile to shop around and compare the different loan options.

Lending terms

Best Egg offers fixed-rate personal loans that range from $2,000 to $35,000. Some qualified borrowers may be able to borrow up to $50,000.

The loan terms are generally between three and five years, but there are no prepayment penalties. Therefore, you can pay off the loan more quickly without extra fees.

The quote you receive is based on multiple factors, including:

  • Credit history
  • Debt-to-income ratio
  • Loan amount
  • Repayment term (36 vs. 60 months)

Best Egg issues loans in partnership with Cross River Bank, a New Jersey-based bank that's a member of the FDIC.

Best Egg borrower snapshot

Borrower average
Loan size$15,000
Credit score700
Income$80,000
Compare Loan Rates

Origination fees

The lender acts as a broker, matching investors with would-be borrowers and charging an origination fee for its services. Think of it like an application fee or a processing fee — a sunk cost that may or may not seem reasonable, but it's non-negotiable. Some lenders charge this fee, but not all.

Best Egg origination fees vary from 0.99 percent to 5.99 percent. Origination fees on a loan term five years or longer will be a minimum of 4.99 percent.

Best Egg's origination fee is an upfront cost taken off the top of the loan. For example, if you are approved to borrow $10,000 with a 3.5 percent origination fee, you'll receive only $9,650. Keep in mind, though, that you'll be making payments on the entire $10,000. You should factor the origination charge when calculating the total amount you're looking to borrow.

The company says that once approved, it funds about half of its loans within the same or next business day.

The following states require minimum loan amounts:

  • Residents of Massachusetts must borrow over $6,000.
  • Residents of New Mexico and Ohio must borrow over $5,000.
  • Residents of Georgia must borrow over $3,000.

The Best Egg website is notably lacking in the free financial education tools offered by some other lenders. Both LendingClub and OneMain Financial, for example, have a robust library of articles and other tools to help consumers learn more about debt and loans.

Minimum Borrower Requirements

To be eligible, you need to be a U.S. citizen and at least 18 years old (19 in Alabama and Nebraska) and have a valid bank account. You need a minimum FICO score of 700 and an individual annual income of at least $100,000 to qualify for the best rates, though it's possible to score a loan with higher rates even if you don't meet that criteria.

You must also have a credit history that is at least three years in length and that has at least three open credit accounts. None of those three accounts can have any delinquent payments in their histories.

If you have a bankruptcy on your credit report, if you have a tax lien, or if you are currently working together with a credit counselor or a debt management company, your application will automatically be disqualified.

Fees and penalties

  • Best Egg charges an origination fee of 0.99 percent to 5.99 percent depending on creditworthiness.
  • There is a possible $7 fee if you pay by check or Western Union wire transfer.
  • Late payment and returned payment fees are $15.
  • You won't be penalized for paying off your loan early.

How to apply

The application process is straightforward and fast. Enter some basic information in the online application, including the loan amount you want, your annual individual income and your annual household income.

Here's what you'll need to apply for a loan with Best Egg:

  • Loan amount
  • Gross annual income
  • Annual household income
  • Home type
  • Debt information (includes credit card cash advances and monthly housing payment)
  • Personal information (includes address, phone number and Social Security number)

Best Egg then will conduct a "soft" credit check, which won't impact your credit rating. The whole process should take just a few minutes, and if you're approved, the screen will display your offers for both a 36-month and a 60-month loan.

Note that Best Egg will do a hard credit check before finalizing the loan, so, as with all hard credit pulls, your credit score could be affected.

If you agree to the terms of one of the displayed loans, you'll have to enter your checking account routing number so Best Egg can transfer the funds to your account. You may be asked to upload proof of identity and/or income.

Best Egg vs. SoFi vs. Payoff

Best EggSoFiPayoff
Loan amounts$2,000 to $50,000$5,000 to $100,000$5,000 to $35,000
APR range5.99% to 29.99%5.99% to 16.24%5.99% to 24.99%
Origination fee0.99% to 5.99%None0% to 5%
Minimum credit score700 for the best ratesNoneNone
Time to fundingNext business daySeveral days1 to 7 business days
Soft credit check with application?YesYesYes
Compare Loan Rates

The lowest rates offered by Best Egg are significantly better than that of most credit cards, so this could save you money over time if you're using a Best Egg loan to pay off high-interest credit card debt.

In addition to these lenders, there are other companies that offer personal loan packages similar to those from Best Egg. For example, Upgrade provides a similar type of loan for people with significantly lower credit scores, but the APR is much higher. This means that you could get approved for a loan from Upgrade more easily, but you will likely face a higher interest rate with that lower score.

Marcus by Goldman Sachs also offers a similar personal loan but without the origination fee. In addition, Marcus allows you to lengthen the term of your loan, which can lower your monthly payments. However, when you stretch out the loan, you'll likely pay more in interest overall, making Best Egg's loan a better deal in the end.

What to do if you are turned down

If you're unable to qualify, or if you only qualify for one of Best Egg's highest-rate loans (which could be close to 30 percent), consider the following:

  • Secured credit cards to help rebuild credit
  • Lower credit-friendly lenders like OneMain Financial
  • Lenders that don't charge origination fees, like Discover or SoFi

If Best Egg rejects your application and you believe your financial standing is strong enough, consider asking for clarification. The explanation could be as simple as a processing error, or there may be a negative mark on your credit report that you need to investigate.

A brief history of Best Egg

Best Egg was created in 2014 by a team of former Barclays executives. Since then, it has funded over $5 billion in loans. Best Egg also enjoys an A+ rating with the Better Business Bureau.

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