If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.
A personal loan can come in handy when it's time to pay for home improvements, fund a wedding, bury a loved one, or cover any number of expenses. In many cases, using a personal loan is less expensive than using a credit card, particularly if you have a strong credit score. That's because borrowers with the best credit scores are offered the lowest personal loan interest rates. One of the best things about American Express personal loans is that they're offered by a company we're all familiar with. Before you sign on for any loan, though, it pays to do your homework to make sure it's right for you. Here, we'll share the pros and cons of an American Express personal loan and give you an idea of whether it's a loan you want to pursue.
A personal loan worth considering, but only for those who are American Express cardholders.
Get the best rates and terms to fit your needs. Here are a few loans we'd like to highlight, including our award winners.
This loan is a good fit for: Eligible American Express customers who prefer to work with a lender they know and trust.
No origination fees or prepayment penalties: Some lenders nickel and dime borrowers with junk fees, ultimately making borrowing more expensive than necessary. American Express personal loans come with no loan origination fees, and the company won't hit you with a prepayment penalty if you decide to pay the loan off early.
Top-notch customer satisfaction: In both 2020 and 2021, American Express Company received the top ranking for customer satisfaction among credit card users. Why does this matter since we're talking about personal loans? Because personal loan borrowers must first be American Express credit card users, the level of service they receive from the company can enhance the borrowing experience.
Can be used to pay off high-interest debt: For borrowers carrying other types of high-interest debt, an American Express loan may be able to help. If the interest rate on the personal loan is lower, the combination of a lower interest rate and fixed repayment term can help a borrower pay their debt off faster, saving them money.
Fast approval time in most cases: Unless the company requests additional information, applicants normally know if they qualify for a loan within seconds.
Only available to American Express cardholders: One must already be an American Express cardholder to apply for a personal loan, a fact that cuts out a large swath of potential applicants.
Qualifications required are unclear: It is nearly impossible to learn more about the criteria American Express uses to determine whether an applicant is credit-worthy.
No clear sense of interest rate: Given that interest rates offered by American Express vary but go up to 13%, it would be nice for an applicant to have a sense of how expensive the loan will be prior to applying.
Relatively slow funding time: Once an applicant has signed a personal loan agreement, it can take three to five business days to have funds directly deposited into their bank account. Let's say someone signs the loan agreement on a Friday. It could be between Wednesday and Friday of the following week before the funds arrive. While this is fine for those who can wait, if someone needs the money sooner for an emergency, like a car that broke down on the side of the road, an American Express personal loan is not going to be a good option.
Short repayment window: Loan terms range between 12 and 36 months, meaning a borrower has, at most, three years to repay a loan. Many of the best personal lenders offer up to 84 months to pay off a loan in full.
American Express does not disclose the qualifications required to land a personal loan. However, here's what we know:
American Express makes it easy to apply for a personal loan. Here's how the process works:
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
*Upstart Loan Disclaimer
The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 21.97% and 36 monthly payments of $35 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $12,646 including a $626 origination fee. APR is calculated based on 3-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application.
Rates quoted are with AutoPay. Your loan terms are not guaranteed and may vary based on loan purpose, length of loan, loan amount, credit history and payment method (AutoPay or Invoice). AutoPay discount is only available when selected prior to loan funding. Rates without AutoPay are 0.50% points higher. To obtain a loan, you must complete an application on LightStream.com which may affect your credit score. You may be required to verify income, identity and other stated application information. Payment example: Monthly payments for a $10,000 loan at 8.49% APR with a term of 5 years would result in 60 monthly payments of $205.12. Some additional conditions and limitations apply. Advertised rates and terms are subject to change without notice. Truist Bank is an Equal Housing Lender. © 2024 Truist Financial Corporation. Truist, LightStream, and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.
Citi Personal Loan disclaimer:
**Rates as of 05-31-2024. Your APR may be as low as 11.49% or as high as 20.49% for the term of your loan. The lowest rate quoted assumes excellent credit and a loan term of 24 or 36 months. Your APR will depend on a variety of factors including your creditworthiness, term of loan, and existing relationship with Citi. For example, if you borrow $10,000 for 36 months at 15.99% APR, to repay your loan you will have to make 36 monthly payments of approximately $351.52.
There is a 0.5% APR discount if you enroll in automatic payments at loan origination. Additionally, existing Citigold and Citi Priority customers will receive a 0.25% discount to the interest rate. If you are in default, your APR may increase by 2.00%. No down payment is required. Rates subject to change without notice.
You must be at least 18 years of age (21 years of age in Puerto Rico). Co-applicants are not permitted. Loan proceeds cannot be used for post-secondary educational or business purposes.
If you apply online, you must agree to receive the loan note and all other account disclosures provided at loan origination in an electronic format and provide your signature electronically.
Credit cards issued by Citibank, N.A. or its affiliates, as well as Checking Plus and Ready Credit accounts, are not eligible for debt consolidation, and Citibank will not issue payoff checks for these accounts. If you are unsure of the issuer on the account, please visit https://www.citi.com/affiliatesproducts for a list of Citi products and affiliates.