When you're applying for a personal loan, you want a lender with flexibility. This is especially true if your credit isn't perfect as lower scores can lead to loan rejection or high interest rates. In this case, Best Egg is an online lender that should be on your radar.
CNBC Select reviews what Best Egg has to offer, including terms, benefits and potential alternatives to help you decide whether it's the right lender for you.
Best Egg Personal Loan
Annual Percentage Rate (APR)
5.99% to 29.99%
Loan purpose
Debt consolidation, home improvement, moving expenses, major purchases, adoption and more
Loan amounts
Up to $50,000
Terms
36 to 84 months
Credit needed
Not disclosed
Origination fee
0.99% to 8.99% of the loan amount
Early payoff penalty
None
Late fee
$15 fee if the borrower's bank account has insufficient funds
Terms apply.
Pros
- Possible to secure financing in as little as 24 hours
- An average APR discount of 20% compared to their unsecured loan*
- Factors besides credit scores are considered when applying
- Access to Best Egg Financial Health
Cons
- 0.99% to 8.99% origination fee
- Home may be difficult to sell or refinance before the secured loan is repaid
*The Best Egg Secured Loan is a personal loan secured using a lien against fixtures permanently attached to your home such as built-in cabinets, light fixtures, and bathroom vanities. Rest assured, your home itself will not be used as collateral.
Best Egg review
APR
The interest rate you can get with Best Egg depends on your credit profile and the type of loan you're applying for. Namely, a traditional unsecured loan comes with APRs from 8.99% to 35.99%, which is pretty typical for the market. On the other hand, securing your loan with collateral can save you on interest — Best Egg charges an APR of 5.99% to 29.99% on secured loans. This option is only available to homeowners as Best Egg uses items in your home such as cabinets, light fixtures and vanities as collateral.
Perks
Like many lenders, Best Egg lets you check your estimated rate with a soft credit check, meaning it won't affect your credit score. If you do apply, Best Egg will consider numerous factors when determining whether to approve your application — and your credit score is just one of them. This can help you qualify even if your score leaves a lot to be desired.
Additionally, Best Egg offers personal loans for a wide array of purposes, from debt consolidation to home improvement, moving, adoption, special occasions and many more.
Finally, you'll also get access to Best Egg Financial Health. This platform allows you to track your credit scores, monitor your spending, set a budget, and explore the lender's library of useful articles on financial topics.
Fees
Best Egg charges a one-time origination fee of 0.99% to 8.99% which is deducted from the loan proceeds. This can be a significant charge, considering you can find lenders that don't impose these fees.
Besides that, you'll pay a $15 returned payment fee if your money fails to get processed — for example, if your bank account has insufficient funds or your check bounces.
Loan amount
How much you can borrow with Best Egg is also in line with what most lenders offer. Specifically, the minimum loan amount you can apply for is $2,000, while the maximum amount is $50,000. Note that the minimum amount can differ in some states.
Term length
Repayment terms for Best Egg unsecured loans range from 36 months to 60 months. With a secured loan, the maximum repayment term jumps to 84 months. Remember that your loan term may impact your APR. Typically, a longer repayment term translates into a higher interest rate.
Compare personal loans
Best Egg can be a good choice if you're shopping for personal loan offers. This is especially true for homeowners who can get an APR discount by securing their loan with items in their house.
However, make sure to compare multiple offers before committing to one. For example, if you're interested in secured loans, we recommend looking into Upgrade. This lender can offer an option to add your vehicle as collateral so you can qualify for a better rate. You can borrow anywhere from $1,000 to $50,000 and receive discounts, such as for setting up autopay during your application or using your loan to pay off debt.
Upgrade Personal Loans
Annual Percentage Rate (APR)
8.49% - 35.99%
Loan purpose
Debt consolidation/refinancing, home improvement, major purchase
Loan amounts
$1,000 to $50,000
Terms
24 to 84* months
Credit needed
Fair, good to excellent
Origination fee
1.85% to 9.99%, deducted from loan proceeds
Early payoff penalty
None
Late fee
Up to $10 (with 15-day grace period)
Terms apply.
If you're worried about your approval odds because of your credit profile, Upstart can be another option. The lender works with borrowers with lower credit scores or even without a credit history. Loan amounts range from $1,000 to $50,000 and you can expect to pay an origination fee of up to 12%.
Upstart Personal Loans
Annual Percentage Rate (APR)
7.8% - 35.99%
Loan purpose
Debt consolidation, credit card refinancing, wedding, moving or medical
Loan amounts
$1,000 to $50,000
Terms
36 and 60 months
Credit needed
FICO or Vantage score of 600 (but will accept applicants whose credit history is so insufficient they don't have a credit score)
Origination fee
0% to 12% of the target amount
Early payoff penalty
None
Late fee
The greater of 5% of monthly past due amount or $15
Terms apply.
Remember that shopping around allows you to choose a loan that fits your needs and saves you the most money. Most lenders let you check potential terms without a hard credit check — they will only pull your credit once you officially apply.
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Bottom line
Best Egg is a digital lender offering secured and unsecured personal loans. When you apply, Best Egg considers factors besides just your credit history when deciding whether to lend you. This, coupled with the option for homeowners to secure the loan, makes the Best Egg a compelling choice — whether you're consolidating debt or need funds for other purposes. Still, make sure to request offers from other lenders too so that you know you're getting the best deal.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every personal loan review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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