Best Egg Personal Loans: 2021 Review

Best Egg is an online lender offering personal loans for borrowers with fair or good credit.

Jackie VelingDecember 10, 2020
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Our Take

4.0

NerdWallet rating 

The bottom line: Best Egg personal loans are available to borrowers who want to consolidate debt and need cash fast, but they don’t have certain features offered by other lenders.

BestEgg

on Best Egg's website

on Best Egg's website

Min. Credit Score

600

Est. APR

5.99 - 29.99%

Loan Amount

$2,000 - $35,000

Pros & Cons

Pros

  • Competitive rates among fair-credit lenders.

  • Able to fund loans within one business day.

  • Secured loan option for homeowners.

Cons

  • Charges origination fee.

  • Charges $15 late fee.

  • Doesn't offer direct payment to creditors with debt consolidation loans.

  • Borrowers can choose from only two repayment term options.

Compare to Other Lenders

BestEgg
Payoff
Marcus by Goldman Sachs
NerdWallet rating 
NerdWallet rating 
NerdWallet rating 
Est. APR

5.99 - 29.99%

Est. APR

5.99 - 24.99%

Est. APR

6.99 - 19.99%

Loan Term

3 to 5 years

Loan Term

2 to 5 years

Loan Term

3 to 6 years

Loan Amount

$2,000 - $35,000

Loan Amount

$5,000 - $40,000

Loan Amount

$3,500 - $40,000

Min. Credit Score

600

Min. Credit Score

640

Min. Credit Score

660

Compare estimated rates from multiple lenders

Compare Rates

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Full Review

To review Best Egg’s personal loans, NerdWallet collected more than 40 data points from the lender, interviewed company executives and compared the lender with others that seek the same customer or offer a similar personal loan product. Loan terms and fees may vary by state.

Best Egg is an online lender that offers personal loans for borrowers with fair or good credit. Since its founding, more than 600,000 loans have been funded for a total of $10 billion, according to the company.

Best Egg personal loan amounts range from $2,000 to $35,000, though some states have different minimums, and repayment terms are three or five years. Most borrowers use their loan to consolidate debt or refinance credit cards, but you can also use the loan to cover large expenses, including home improvement projects, moving costs and special occasions.

Best Egg is best for borrowers who:

  • Have fair or good credit (630 FICO or higher).

  • Want quick access to funds.

  • Want to consolidate debt and qualify for a rate that lowers their interest costs.

Best Egg at a glance

Credit building

  • Soft credit check to pre-qualify.

  • Reports payments to three credit bureaus.

Affordability

  • APRs are comparable among lenders targeting similar borrowers.

  • Charges origination and late fees.

  • There's no rate discount for autopayments.

Loan flexibility

  • Allows changes to payment due date.

  • Offers only three- or five-year repayment terms.

  • Funds loans in one business day.

  • Isn't available in Iowa, Vermont, West Virginia or Washington, D.C.

Transparency

  • Clearly discloses rates, fees and terms on website.

Customer experience

  • Offers fully online application and loan approval process.

  • Offers financial education.

  • Offers multiple customer contact channels and extended hours, but not 24/7.

Where Best Egg stands out

Low rates for fair credit: The average borrower gets an annual percentage rate of 14%, but those with better credit can qualify for rates below 10%. To get Best Egg’s lowest loan rate of 5.99%, borrowers need a minimum 700 FICO score and a minimum income of $100,000.

Fast funding: Best Egg’s online application takes minutes to complete. After a borrower submits an application, he or she will know within seconds whether they have an offer, the company says. Once an application is approved, the loan can be funded in as little as one business day, though the company says it takes two to three days on average.

Unsecured and secured loan options: Best Egg offers both unsecured and secured personal loans. The secured loan, called a Nested Loan, is similar to a home equity loan, but it uses fixtures permanently attached to your home, like your water heater, as collateral instead of your entire house. Same-day offers are available with Nested Loans, and you can receive funding in as little as three days. If a borrower fails to repay the loan, Best Egg can repossess the collateral.

Free credit score: Personal loan customers can opt in to access their credit score through their Best Egg account.

Where Best Egg falls short

No direct payments to creditors: Unlike other lenders that focus on debt consolidation, Best Egg doesn't send payments directly to creditors when you consolidate debts with a loan. Instead, borrowers have to keep track of their own repayments.

Limited term lengths: Borrowers can choose a three- or five-year loan repayment term. That’s somewhat common for online lenders, but it doesn’t give you the option to choose a shorter term and pay less interest, or a longer one to lower your monthly payments.

No rate discount for autopay: Unlike other lenders, Best Egg doesn't offer an additional rate discount. The discount usually ranges from 0.25% to 0.5% and incentivizes borrowers to set up autopayments.

Origination and late fees: Best Egg charges an origination fee ranging from 0.99% to 5.99% and a $15 fee for late payments.

What to know about Best Egg

In August 2020, Marlette, the parent company of Best Egg, settled with the Colorado attorney general’s office after the state alleged that it partnered with out-of-state banks to offer rates above the state-mandated maximum.

Marlette agreed to pay just over $1 million for consumer protection efforts and an additional $500,000 to support the state’s financial education efforts.

How to qualify for a Best Egg loan

  • Minimum credit score: 600; borrower average is 700.

  • Minimum credit history: three years and three accounts.

  • Minimum income: no minimum income requirement; borrower average is $80,000. Borrower must have enough cash flow to cover current financial obligations.

  • Minimum debt-to-income ratio: 40% or 65% including a mortgage; borrower average is 40%.

  • Employment: Must provide proof of income; part-time employees are eligible.

  • Must provide valid U.S. address and Social Security number.

Loan example: A three-year, $10,000 loan with a 17.4% APR would cost $359 in monthly payments. You’d pay $2,924 in total interest on that loan.

How to get a Best Egg loan

Pre-qualify on NerdWallet

NerdWallet recommends comparing loans to find the best rate for you. Pre-qualifying may get you personalized rates from multiple lenders that partner with us, including Best Egg. Pre-qualifying won't impact your credit.

Apply on Best Egg

You can fill out an application on Best Egg’s website. After entering some personal information, you’ll be presented with loan options for which you pre-qualify.

on Best Egg's website

Personal Loans Rating Methodology

NerdWallet's ratings for personal loans award points to lenders that offer consumer-friendly features, including: soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus, and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews. Read our editorial guidelines.