Best Egg, which was created in 2014 by a team of former Barclay’s executives, offers unsecured personal loans to customers with good to excellent credit. It caters to borrowers who earn more than $100,000 annually who want to consolidate high-interest debt.
Best Egg has originated more than $3 billion in loans to date.
Because the screening process for its unsecured personal loans is entirely virtual, there are fewer loan underwriting costs, which means Best Egg may be able to offer better interest rates and quicker turnaround times than brick-and-mortar lenders.
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, slightly better than the national average FICO score of 695. 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 $56,500.
- 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 virtually — from applying for a loan to receiving approval to having the money deposited in your bank account if you are funded.
Who should not accept a loan
- Anyone with fair or poor credit. If you have less-than-stellar credit, Best Egg may not approve your loan request.
Best Egg offers fixed-rate personal loans that range from $2,000 to $35,000. The quote you receive is based on multiple factors, including credit history, the amount you’re asking for and if you want 36 or 60 months to pay it off.
Best Egg’s loans are issued in partnership with Cross River Bank, a New Jersey-based bank that’s a member of the FDIC.
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, but not all lenders, charge this fee.
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 and you’re charged a 3.5% origination fee, you’ll only receive $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, about half of its loans are funded within the same or next business day.
The Best Egg website is notably lacking in the free financial education tools offered by some other lenders. Both Lending Club 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’ll need a minimum FICO score of 700 and an individual annual income of at least $100,000 to qualify for the best rates, but higher-rate loans may be approved for those who don’t meet that criteria.
Fees and penalties
- Best Egg charges an origination fee of 0.99% to 5.99% depending on creditworthiness.
- You won’t be charged if you pay by check or Western Union wire transfer.
- Late payment fee 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 yearly individual income and your yearly household income.
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 a both a 36-month and a 60-month loan.
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. 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.
|Loan amounts||$2,000 to $50,000||$5,000 to $100,000|
|APR range||5.99% to 29.99%||5.70% to 14.24%|
|Origination fee||0.99% to 5.99%||None|
|Minimum credit score||700 for the best rates||None|
|Time to funding||Next business day||Several days|
|Soft credit check with application?||Yes||Yes|
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.
If you only qualify for one of Best Egg’s highest-rate loans, which could be close to 30%, you might be better off with another option, like transferring your credit card debt to a card with a longer-term 0% balance transfer offer.
Best Egg might be a good fit for those who don’t qualify for a traditional bank loan, but you may want to consider shopping around to see if you can find similar loan terms from a lender that doesn’t charge an origination fee, like Discover or SoFi.
What to do if you’re turned down
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.