American Express vs. Wells Fargo: Which offers better personal loans?
Key takeaways
- An American Express personal loan may be better for existing customers who can qualify for its lowest rates.
- By comparison, a personal loan from Wells Fargo could be better for an existing customer who wants borrow a large amount.
- When deciding between these two lenders, focus on rates and loan amounts — and consider that both are best for current account holders.
If you’re looking for a personal loan, both American Express and Wells Fargo are well-established options. American Express has been providing financial products to customers since 1850, and Wells Fargo started in 1852 to help customers manage their money well.
In terms of personal loans, American Express is the best option if you want a competitive interest rate, while Wells Fargo offers larger loans.
American Express vs. Wells Fargo at a glance
Wells Fargo and American Express both offer personal loans, but they differ in the annual percentage rate (APR) offered as well as loan term lengths and loan amounts.
| American Express | Wells Fargo | |
|---|---|---|
| Bankrate Score | 4.4 | 4.4 |
| Better for | Lowest APR | Large loan amounts |
| Loan amounts | $3,500–$40,000 | $3,000–$100,000 |
| APRs | 6.90%-19.97% | 6.99%-24.49% |
| Loan term lengths | 12–60 months | 12–84 months |
| Fees | Late payment fee | Late payment fee |
| Minimum credit score | Not Specified | Not Specified |
| Time to funding | Typically 3-5 business days | Typically 1-3 business days |
American Express personal loans
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American Express provides personal loans for its cardholders — but only to consolidate credit card debt. Its loans come with a competitive starting annual percentage rate (APR) but a relatively low maximum amount of $40,000. While American Express personal may be a good option for current cardholders, it’s quite inconvenient if you aren’t already one. Additionally, personal loans from American Express have a number of restrictions on how you can use the funds, including a ban on purchasing vehicles. Other personal loans give more freedom in how you can use loan funds.
Wells Fargo personal loans
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Wells Fargo also only offers personal loans to current customers. If you have had a Wells Fargo account for at least 12 months, you can apply online, by phone or at a branch. Unlike many other lenders, including American Express, you may qualify for up to $100,000. And if you sign up for automatic payments with a qualifying account, you can secure a discount of 0.50 percent.
How to choose between American Express and Wells Fargo
Both American Express and Wells Fargo offer personal loan options to pre-existing customers. This limits eligibility, but if you’re looking to open an account with one over the other, both lenders have different strengths. Choose Wells Fargo for larger loans, but stick with American Express if you want to score the lowest personal loan interest rate.
APR range
American Express and Wells Fargo have similar interest rates for borrowers, but American Express has a slightly slower minimum advertised APR at 6.90 percent. Plus, Wells Fargo’s maximum APR is 24.49 percent, almost five points higher than you could qualify for with American Express. That said, the rate you receive will vary. As a result, it’s best to compare offers before moving forward.
Minimum credit score
Unlike some lenders, American Express and Wells Fargo don’t disclose minimum credit score requirements. In general, borrowers with good to excellent will qualify for the lowest rates.
Repayment terms
Wells Fargo offers slightly longer repayment terms than American Express. It could be the best option for borrowers looking for potentially lower monthly payments. However, note that choosing a longer loan term usually means paying more interest over the life of the loan.
Loan amount
Wells Fargo offers more flexible loan amounts. If you need to borrow under $3,000 or over $40,000, it’s a better option than American Express. That said, if you need any amount between these, you should choose the lender that offers better account services for your needs.
Fees
Neither lender charges origination fees, but you may have to pay a late fee if you miss a payment. While the late fee for Wells Fargo is not disclosed, American Express’ late fee is $39. This is on the higher end for many lenders, but it’s not an uncommon charge.
The bottom line: Which is better?
Whether you choose American Express or Wells Fargo, the better choice largely depends on your desired loan amount and the APR you receive. If you want to borrow over $40,000, then Wells Fargo is a better fit. However, if you don’t need such a large loan and can secure a better rate with American Express, then it is the more attractive choice.
Either way, you will need an account to qualify for either lender. If you need funds more quickly, you can compare personal loan rates with other lenders that don’t have as many restrictions on their products.
Compare lenders before applying
The interest rate, loan fees and repayment terms all add up to create the cost of the loan. Make sure you are getting the best deal by comparing multiple lenders. Look at both traditional lending and online lending options. You may find you can get the best deal with a lender you already bank with.
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