When applying for a personal loan, you want to find a lender offering you a competitive APR and favorable loan terms so your financing is affordable. It's also important to make sure your lender has good customer service, makes the loan approval process easy, and is likely to approve you for a loan based on your credit, income, and other financial credentials.
Best Egg is one lender you should consider if you're looking to secure financing, as you can use their loans for many purposes. But before you look into how to get a loan with Best Egg, check out this review for the details you need to make an informed choice.
What is Best Egg?
Best Egg is an online personal loan originator powered by Marlette Funding. First founded in 2014, Marlette Funding was launched with the goal of helping make money accessible to borrowers by offering fast, easy, funding.
It has succeeded in that mission. As of October 2019, more than 350,000 people have borrowed from Marlette Funding through Best Egg. These borrowers have received more than $7 billion in loans to help them accomplish their financial goals.
Borrowers from across the United States can use Best Egg to obtain the money they need. However, residents of Massachusetts, New Mexico, Ohio, and Georgia are subject to different loan maximums or minimums than those from other states who can borrow between $2,000 and $35,000.
All loans originated by Best Egg are funded by a New Jersey bank called Cross River Bank, which is an FDIC-insured chartered commercial bank, and an equal housing lender.
Which loan products does Best Egg offer?
Best Egg's website markets loans for various purposes: loans for debt consolidation, refinancing credit card debt, covering moving expenses, paying for home improvements, funding travel, or paying for big purchases.
In reality, however, what Best Egg is offering is simply a personal loan — and you get to decide what to do with the money after you receive it. Many of the best personal loan lenders do this type of marketing — offering loans labeled for specific purposes — to make would-be borrowers clearly understand some of the different uses of their loan.
In reality, though, it doesn't matter which type of loan you specify you want. You'll just be given a general personal loan with funds that you have the flexibility to spend. Your interest rate and other loan terms will be determined based on your financial credentials, the amount borrowed, and the term of your loan.
Unlike many online lenders, though, Best Egg only offers personal loans. It doesn’t offer mortgages, car loans, or student loan refinance loans as some other lenders do.
Personal loans from Best Egg
A personal loan from Best Egg is ideal for borrowers who want to borrow between $2,000 and $35,000 over a three- or five-year period of time.
While you can use the money for anything you want, common reasons to borrow include using loan proceeds to better deal with other debt or to fund things you can't afford to pay for on your own.
Best Egg personal loans generally have interest rates that are much more affordable than the standard rate on a credit card, although their rates are typically higher than secured mortgage or auto loans. Whether you can qualify for a loan will depend on:
- Your credit score and information provided to Best Egg by credit reporting agencies. You'll have a better chance of loan approval if your score is good or excellent and you don't have a lot of recent delinquencies or other problems with your credit history.
- Information you provide on your loan application, including details about your employment history, income, and other financial obligations. Best Egg needs this information to assess the likelihood you'll repay the loan. A very low income or unstable employment history could lead to a loan denial.
- Your debt-to-income ratio, which is the total amount of your monthly debt payments relative to your monthly income. A higher debt-to-income ratio makes qualifying more difficult, while owing very little relative to your income increases the chances you'll be approved for a personal loan.
Best Egg does provide the chance for you to get pre-approved for a loan and to check your rate without having a hard inquiry placed on your credit report. This is good news for would-be borrowers who can find out whether they're eligible for a loan — and on what terms — without hurting their credit in the process.
Key terms of Best Egg personal loans
While Best Egg personal loan terms vary depending on your financial situation, here's what you can expect if you get a loan from this online loan originator.
|Loan product||Personal loan from Best Egg|
|Loan amount offered||$2,000 to $35,000|
|APR||8.99%–35.99% (as of Feb. 10, 2023)|
What can Best Egg personal loans be used for?
Best Egg personal loans can be used for virtually any purpose that you'd like. If you qualify for funding, the lender will provide you with the money, and you can do what you want with it.
However, Best Egg does market their loans for specific purposes — although you don't necessarily have to use your loan funds for one of these goals. Best Egg recommends using its personal loans for some of the following purposes.
When you consolidate debt, you use the money from your Best Egg loan to pay off multiple current creditors, so you're left with just one loan to pay instead of many.
Credit card refinancing
You can use your loan proceeds to pay off high-interest debt on one or more credit cards and then work on paying off the loan. More of your payment will go to principal because the interest rate should be lower. And you'll have a fixed payment and a definite debt-free date, unlike with credit cards that allow you to make minimum payments and keep charging over time.
Upgrading your home can be expensive. Plus, not everyone can qualify for a home equity loan or wants to borrow against the equity in their home.
If you'd prefer an unsecured personal loan that doesn't put your house at risk, you can get it through Best Egg to make your living space more enjoyable. A Best Egg personal loan is also a good option for if you don’t have sufficient equity in your home to qualify for a home equity loan or HELOC.
Major purchases or special occasions
When you can't afford to pay for something upfront — whether it's a big purchase or a major celebration — a personal loan can be a more affordable way to borrow than a credit card. It also provides you with a fixed payment schedule and a payoff date so you won't have to worry about being stuck in debt indefinitely.
But, remember, you should only borrow for truly essential purchases or vital celebrations because you don't want to pay interest on something you don’t really need. Borrowing for a wedding is very common, but even in these circumstances, try to save up or cut costs before taking out a big loan so you don't enter into marriage with a lot of debt hanging over your head.
Funding a trip can be expensive, but Best Egg personal loans can be used to pay for travel. You should be cautious about borrowing for non-essential trips, though, as you'll make your vacation more expensive by paying interest on vacation costs.
If you have to relocate, you can use the money from a Best Egg loan to pay for a moving truck and other costs associated with the move.
Costs associated with growing your family
Adopting a baby can be expensive, as can having a child — especially if you require fertility treatments or if your insurance provides little or no coverage for prenatal care and delivery. A Best Egg personal loan can help you in growing your family.
What Best Egg customers are saying
Best Egg has generally good customer reviews, with an A+ rating from the Better Business Bureau and an average 5-star rating across more than 2,000 customer reviews.
Customers cite the easy application process, fast approval, and good customer service in giving Best Egg top marks. There are some customer complaints, though, including from customers who were denied loans that they expected to be approved for and from customers complaining that payments were not applied to their accounts in a timely manner.
Overall, though, Best Egg seems to have positive ratings because of its ease and efficiency in getting customers approved for a loan.
FAQs about Best Egg
Is Best Egg a good idea?
If you are going to take out a personal loan, Best Egg is a personal loan issuer that has good customer reviews and that offers loans at a competitive rate. While you should compare rates and terms among different lenders to see who makes you the best financing offer, there is no reason not to make Best Egg one of those lenders.
Will Best Egg hurt my credit?
Best Egg provides the chance to get pre-approved without your credit being affected. If you decide to go through with the application process and take out a loan, you will get a hard credit inquiry on your credit report. The loan will also be listed as a new account on your credit history.
Too many inquiries on your credit report can hurt your credit score. And inquiries stay on your record for two years. Opening a new account will also lower the average age of your accounts, which can adversely impact credit. However, this would happen with any personal loan you take out — it's not specific to Best Egg.
If you pay your Best Egg loan on time and develop a positive payment history, having this type of personal loan on your report can also help your credit score.
How long does it take to get approved through Best Egg?
Best Egg will review your application and approve or deny your loan within minutes.
Does Best Egg charge a fee?
Best Egg does charge a fee if you obtain a loan. The origination fee varies from .99% to 5.99% depending on your qualifications as a borrower.
Can I pay off my Best Egg loan early?
There are no prepayment penalties on loans originated through Best Egg.
The final word on Best Egg
If you're looking for a personal loan, it's worth getting pre-approved by Best Egg to see what loan terms you'll be offered. The loan originator advertises competitive rates, you'll get your decision within minutes, and reviews from past customers suggest you'll have a positive experience if you actually borrow. Because of these factors, you have nothing to lose by getting pre-approved by Best Egg if you need a personal loan.
Disclaimer: All rates and fees are accurate as of Jan. 9, 2023.