Item: American Express Personal Loan
Rating: 4
Author: Nicole Dow

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4.0

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Est. APR

6.99 - 19.99%

Min. credit score

None

Time to fund

5 days

Loan amount

$3.5K - $50K

Loan term

1 to 5 years

Overview

American Express offers personal loans with relatively low rates and next-day funding to preapproved cardholders only.

Though these loans may be a convenient option for those who are preapproved, they lack some consumer-friendly features, like the ability to add a co-applicant or collateral to the loan or the opportunity to choose or change the monthly payment date.

Qualifying borrowers can use the loan funds in many ways; however, borrowers can’t use the money to pay down an American Express credit card.

» MORE: Compare personal loan rates and lenders

Detailed breakdown

Affordability

(25%)

4.5/5

We review lenders’ annual percentage rate offerings and the competitiveness of each lenders’ APR range. We also assess whether a lender charges an origination fee and any opportunity for borrowers to receive a rate discount.

Customer experience

(20%)

4/5

We consider the experience of the consumer trying to manage a personal loan, which means accessibility of customer service representatives, whether borrowers can choose and change their payment due date, and the ability to track their loan on a mobile app.

Underwriting and eligibility

(20%)

3.5/5

We consider the rigorousness of each lender’s underwriting practices and how widely available their loans are. This category includes whether a lender does a hard credit check before providing a loan, the range of credit profiles they accept and how many states their loans are offered in.

Loan flexibility

(20%)

4/5

We assess how flexible lenders can be with borrowers, including whether they offer multiple loan types, personal loan amounts and repayment term options and whether they offer direct payment to creditors on debt consolidation loans.

Application process

(15%)

4.5/5

We consider the lender’s full application process, including a borrower’s ability to preview their loan offer via pre-qualification, whether basic loan information such as APR range and repayment terms are available and easy to find online and how quickly a loan can be funded after approval.

Overall

4/5

Read more about our ratings methodologies for personal loans.

Where Amex personal loans stand out

Competitive APRs: The annual percentage rates of American Express personal loans are some of the lowest among competitors. When comparing multiple loan offers, the one with the lowest APR will typically save you the most money.
No origination fee: American Express personal loans do not have an origination fee. These fees are more common among online lenders and typically range from 1% to 10% of the loan amount.
Next-day funding: American Express can disburse funds within one business day once you sign the loan documents.
Free credit score access: American Express offers MyCredit Guide, which shows your FICO credit score and Experian credit report for free, alerts you to potential identity theft and provides recommendations on how to help your credit. You can also use the tool to see how paying down debt will affect your score.

Where Amex personal loans fall short

Exclusive to preapproved cardholders: You must be an existing American Express cardholder in good standing to get a personal loan from this lender.
No rate discount: American Express doesn’t offer any discounts on the annual percentage rate. Some lenders let borrowers save a fraction of a percentage point off their APR for being an existing customer or by signing up for automatic payments.
No co-signed, joint or secured loan options: American Express offers only unsecured personal loans to individual borrowers. It doesn’t let you add a co-signer, apply with a co-borrower or secure the loan with collateral to potentially qualify for a lower rate or higher loan amount.
No direct payment to creditors with debt consolidation loans: If you use an American Express personal loan to consolidate your existing debt, the lender does not send funds directly to your creditors. Instead, you’re responsible for taking the loan proceeds and paying off each debt.

How to qualify

American Express personal loans are available nationwide to preapproved cardholders. According to the lender, preapproval is based on several factors, including creditworthiness.

American Express’ borrowing requirements

Must have an active American Express card.
Minimum credit score: None.
Must be a U.S. citizen or resident.
Must have a Social Security number of Individual Taxpayer Identification Number (ITIN).
Must have a valid U.S. bank account and email address.

» MORE: How to get a personal loan

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Compare Amex to the best lenders

Personal loan lenders offer different rates, loan amounts and special features, so it pays to weigh other options. The best personal loan is usually the one with the lowest APR.

4.0	4.5	5.0	5.0
EST. APR 6.99% - 19.99%	EST. APR 8.74% - 35.49%	EST. APR 7.9% - 35.99%	EST. APR 7.74% - 35.99%
LOAN AMOUNT $3.5K - $50K	LOAN AMOUNT $5K - $100K	LOAN AMOUNT $1K - $60K	LOAN AMOUNT $1K - $50K
MIN. CREDIT SCORE None Check Rates	MIN. CREDIT SCORE None Check Rates	MIN. CREDIT SCORE 600 Check Rates	MIN. CREDIT SCORE 600 Check Rates