Best Egg is an online lender backed by Marlette Funding that offers personal loans to borrowers with a fair or excellent credit rating. Since it came into operation in 2014, Best Egg has helped fund millions of households. The company is headquartered in San Antonio, Texas.
In these past few years, Best Egg has established a reputation as one of the most reputable online lenders that also happens to be affordable. The company offers several loan products, including personal loans that can be used to pay for utility bills, vacation expenses, medical bills, etc.
Basic Loan Information
To qualify for a personal loan through Cross Riverbank and Blue Ridge Bank, one must have a minimum FICO credit score of 640. Loans start at a minimum of $2000 to a maximum of $50,000, depending on the borrowers’ credit rating. If borrowers have a lower-than-average credit score, they may be offered a low loan amount with a high APR.
Best Egg offers a variety of loan terms, like 36, 48, and 60 months. Each loan amount comes with an APR that calculates the interest payment one needs to pay along with the loan principal. Best Egg’s APR ranges from 5.99% to 35.99%.
Pros & Cons
The company has several advantages and drawbacks that a customer should evaluate before making a financial decision concerning loans and mortgages. They include the following:
- The loan is approved efficiently.
- The company offers a prequalification application to check rates without impacting the applicant’s credit score.
- They are easily accessible to most borrowers looking for a loan.
- There is no prepayment penalty.
- They provide direct payment for credit card debt consolidation.
- Clients have to pay a one-time origination fee, ranging from 1–6% of the loan amount.
- The company's website does not provide real-time data on fees and rates.
- The company’s APR is relatively high compared to other lenders in the industry.
- The company charges $15 for late payment after the grace period.
As stated earlier, Best Egg requires customers have a FICO credit score of at least 640. This demonstrates a sound credit history and a likelihood of paying back the loan with interest. Moreover, the company requires the debt-to-income (DTI) ratio to be less than 30%.
Best Egg states that these loans can only be used under certain situations and on specific things, including tax payments, home improvements, moving expenditures, medical bills, and automobile expenses, along with traveling and child adoption expenses. Under these conditions, the loan will be approved. However, the loan cannot be approved if used for any illegal activity or to pay for post-secondary education.
To qualify for a loan, one needs to be a US citizen above the legal age of 18 years and have a job and a valid address.
Main Loan Features
Best Egg has an A+ rating from the Better Business Bureau, demonstrating that it is highly recommended by its customers who have given good reviews about its services, including customer support. The company offers a wide range of loan products, including personal loans to cover loan consolidation, credit card refinancing, and other major expenses.
The company offers flexible due dates; selected borrowers can change the timing to pay back the loan at a date that better fits their monthly budget. This feature can be easily accessed on Best Egg’s website and through their phone application.
Rates & Fees
The company offers APRs as low as 6% to 26%, but the APR can go up to 36%. Since the interest rate depends on several variables, including the applicant’s credit score, it varies from person to person. An individual must have a credit score of 700 to qualify for competitive rates.
Customers have to pay an origination fee at the time of application, which is 1–6% of the total loan value. Moreover, the one-time payment fee is about $15, which the customer pays. The company does not charge prepayment penalty fees to its clients for paying the amount earlier than scheduled.
Best Egg’s loan process includes the following steps:
1. Check the rate.
The company provides its customers with a prequalification application form to identify the rate the customer would be getting. The rate is dependent on several factors, such as creditworthiness, DTI ratio, etc.
2. Choose an offer.
The company will provide several loan products that the customer needs to select. It should be noted to choose the offer that makes more sense for your needs and preferences.
3. Apply and verify the application.
On the company's website, the client needs to fill out the application form, like full name, address, and attach payment slips as proof that they are employed and their credit report. Best Egg will then carry out due diligence to confirm that the information is correct.
4. Receive the funds.
Once the application is approved and the loan agreement is signed, the applicant will receive the funds in their account. The repayment process will start depending on the agreed terms, like APR, loan periods, etc.
Borrowers must fulfill the terms of the loan agreement they have signed; to do so, several things should be avoided. First, repayment should be made timely to avoid late fees. Secondly, the loan should only be used on items that have been either permitted or agreed upon by the client and company. Lastly, repayment should be carried out in the way stated in the agreement.
Customers can apply for a loan at any time and can only look after their accounts online. The customer service department is available six days a week. Customer support will answer any customer queries or problems.
The company has received an A+ rating for their customer support for their prompt responses through email, phone, or the helpline at 855-282-6353.
Best Egg is a good online lender for those with an excellent or above-average credit rating. It is important to be aware of this company's drawbacks, including high APRs and the origination fee. It is wise to look for other lenders and weigh your options to make a financially suitable decision.