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If you want to consolidate credit card debt at a lower interest rate with one monthly payment, a personal loan from Best Egg is a great option. But, debt consolidation loans are not all that they specialize in. You can also apply for a loan to help finance any major purchase. This includes home improvement, moving costs, travel, or even business expenses.
You’ll need to have good credit, especially if you want to qualify for the best interest rates possible. If you do, you can benefit from some substantial savings on interest and fees. Keep reading to find out who qualifies for Best Egg loans and what to expect when you borrow from this online lender.
Best Egg Personal Loans
Best Egg offers personal loans ranging from $2,000 to $35,000. Certain qualified individuals may borrow as much as $50,000 but you must receive an offer in the mail in order to take advantage of such a high loan amount.
APRs start off at 5.99% and go up to 29.99%. Rates are fixed, so you can avoid worrying about your monthly payment amount changing once you sign your loan agreement.
Your APR includes an origination fee, which can be as low as 0.99% of the loan amount for the strongest borrowers and go up to 5.99% for less creditworthy borrowers. The amount is deducted directly from your loan before you receive the remaining funds, so you don’t need to have additional cash on hand to cover this expense.
When choosing a loan from Best Egg, you can select either a three-year or five-year repayment plan. There is no prepayment penalty, so you can always make extra payments without incurring any fees.
As it is with all lenders, you’ll get the best terms with Best Egg when you meet higher credit requirements. While the minimum credit score requirement is 640, real-life borrowers are more likely to have a FICO score of over 700.
In fact, you’ll need at least a 700 in order to qualify for the lowest interest rate, along with a minimum annual income of $100,000. Not all borrowers earn that much, but they do typically earn well over the national average. They also have an extensive credit history, with an average length of 10 years.
If you don’t meet these standards, you may find yourself having trouble getting approved for a Best Egg personal loan. But if your income and credit scores are strong, then it certainly is a good option to explore. This is especially true if you know you meet the bare minimum requirements for the 5.99% APR loan.
One of the benefits of applying for a Best Egg loan is that the full application process only entails a soft pull on your credit report. You’ll eventually have a hard check performed, but not until you’ve signed the loan agreement.
To apply online, simply enter your email address to get started. You can also input an offer code if you’ve received a pre-qualification offer in the mail. Next, just enter in some basic information, which takes no more than a few minutes.
You can then compare loans offers with three year and five-year terms, plus see the loan amount you qualify for. Once you select the loan you want and provide some additional documentation for verification purposes, you can sign the loan agreement. Best Egg runs a final credit check and then you’re ready to get funded.
Once You’re Approved
Best Egg is a direct lender, meaning you’ll receive funds quickly and efficiently as soon as your loan paperwork is completed.
In fact, you can get the money in a single business day, making it a feasible option to consider for financial emergencies. All you have to do is provide your preferred bank account information for the deposit to go through.
Once you start your loan payments, be sure to make them on time each month. If you fail to do so, you’ll be charged a $15 late fee. You can also incur a separate $15 fee for unsuccessful payments.
For example, if you set up an automatic payment from your checking account and don’t have the funds available, you’ll be charged extra. Also know that if you want to pay any other way besides an automatic electronic funds transfer, you’ll have to pay a $7 fee for each and every payment. That can add up quickly!
One unique perk with Best Egg is that you can actually take out two personal loans at the same time. There are a few requirements you must meet, but it’s nice to know you have more financing options with a lender you’re already familiar with.
Here’s what you’ll need to qualify. Your first loan must be at least six months old before you can apply for a second one. After that, the only other hard requirement is that the two loans together may not exceed $50,000.
Best Egg’s History
In the three years since Best Egg opened its virtual doors, the lender has funded more than $3 billion in personal loans for a total of 200,000 customers. According to a recent survey of borrowers, 9 out of 10 clients reported being satisfied with Best Egg. On top of that, the lender maintains an A+ rating with the Better Business Bureau.
Is it smart to consolidate your debt with Best Egg?
Taking out a personal loan for any reason is a huge decision that can affect your finances for years to come. When it comes to consolidating your debt, think about a few different factors before making up your mind. Then evaluate Best Egg’s specifics to figure out if it’s the right choice for you.
When should you consolidate your debt?
In most cases, debt consolidation is done in order to realize some sort of financial gain, whether it’s monthly or over time. If you’re carrying a high-interest loan or credit card balance, getting a personal loan with lower interest in order to pay your other commitments could save you money in the long run.
Just be sure you can handle the monthly payments. After all, if you’re used to paying just your minimum balance on a credit card each month, you’ll probably see much higher fixed payments with a loan that only lasts a few years.
But over the years, you could easily save yourself tens of thousands of dollars in interest payments. After just a few years of hunkering down to make those payments, you’ll be done with your debt, rather than letting it drag out and build more interest to pay over an even longer period.
Take the time to assess your financial goals, your current financial ability, and what you can realistically expect of yourself. Only you know how much you can truly push yourself and whether or not a debt consolidation loan is a wise decision.
Saving money in interest payments is certainly a worthy goal. But you won’t be doing yourself any favors if you can’t afford the loan’s monthly payments and instead end up missing payments.
Worse yet, you could default on the loan. Then you’ll not only be in debt, but you’ll also seriously damage your credit score, making it even harder to get access to credit further down the road. The bottom line is, make sure you have a financial plan and that you can afford it for the foreseeable future.
Who should take out a loan with Best Egg?
For starters, make sure you meet the income and credit requirements. While most people do take out debt consolidation loans with Best Egg, it is by no means the only option available. There’s no sense in limiting your financing choices when you don’t need to.
Best Egg doesn’t perform a hard credit check until you sign your loan agreement. That means that your credit score won’t be affected by your application and there won’t even be an inquiry for the application. If you’re looking to protect your credit score, Best Egg is a safe bet.
Before taking out a Best Egg loan, also think about how you plan to pay your bill each month. Because the fee is so high for any method other than an automatic funds transfer, you should explore other options if the preferred method isn’t possible for you.
If you don’t use the automatic transfer, you’ll end up paying an additional $84 each year — that’s $420 over the course of a five-year loan. Either get yourself set up to meet Best Egg’s preferred method of payment or look around some more.