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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.
Lender | APR Range | Loan Amount | Min. Credit Score | Next Steps |
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Apply Now for Discover Personal Loan
Powered by Credible
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
7.99% - 24.99%
|
$2,500 - $40,000
|
660
|
Apply Now for Discover Personal Loan
Powered by Credible |
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
7.80% - 35.99%
|
$1,000 - $50,000
|
None
|
|
Apply Now for Best Egg
Powered by Credible
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
8.99% - 35.99%
|
$2,000 - $50,000
|
550
|
Apply Now for Best Egg
Powered by Credible |
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.