Minimum Credit Score
Fees and penalties
Personal loans do not come with the perks often attached to American Express card products, like Membership Rewards, cash back or insurance benefits. However, the only fee associated with personal loans is a late fee â $39 if your payment is late or not made in full, which can result in major savings. To help you avoid late payments, the company offers an autopay feature.
If youâre using a personal loan for debt consolidation, American Express makes the process easy by sending your funds directly to the issuer. Payments can be disbursed to up to four personal credit card accounts held by most major credit card issuers. Youâll find out if your credit card account is eligible during the application process.
To be preapproved for an American Express personal loan, you must meet the lenderâs minimum eligibility requirements. This includes being:
Only preapproved American Express card members are eligible to apply for a personal loan. During the preapproval process, youâll be asked to provide basic information, like the amount of money youâd like to borrow, desired repayment period, loan purpose, contact information and income. Keep in mind, however, that some card members may only be preapproved to use their personal loan for credit card debt consolidation.
All personal loan applications must be submitted online. Youâll need an American Express online account and valid email address, and you must agree to receive electronic communications and other online documents. Do note, however, that preapproval is not a guarantee that youâll be granted a loan â but if your application is approved, youâll have up to three days to review and accept the terms.
If your personal loan was approved to pay down credit card debt, the funds will be sent directly to the accounts designated on your application. Otherwise, the money will be sent to an eligible bank account on file with American Express. If you donât have an eligible bank account on file, you have three days from the date you sign your loan agreement to add a personal checking account in your name or your loan agreement will be deemed void and unenforceable.
An American Express personal loan can be a great choice for cardholders who donât want to pay fees. Since the only fee associated with the loan is a $39 late fee â assessed only on late payments and those not made in full â you wonât pay any fees if you satisfy your monthly financial obligation.
Having several repayment periods available can also be a helpful option. This gives you the opportunity to choose a monthly payment that works best with your budget.
Considering the loan amount ranges from $3,500 to $40,000, this product is geared toward borrowers who need a higher loan amount. Itâs also a better choice for cardholders with higher credit scores, as loan offers â including APR and maximum borrowing power â are based on creditworthiness and other factors.
Before moving forward with an application, itâs a good idea to check out reviews from other consumers and get a feel for the lenderâs general reputation.
American Express has an A+ rating from the Better Business Bureau. The lender does not yet have reviews on LendingTree, our parent company.
To learn more about American Express, we recommend contacting the lender for a firsthand experience at its customer service and to get answers to any outstanding questions. You may also check the lenderâs social media pages to see its activity and how consumers are responding. This may help you make a more informed decision before moving forward.
No. According to the site, âyour credit score will not be impacted when you apply,â but the loan will be reported to the credit bureaus once youâre approved and agree to the terms.
You wonât be able to take out that loan, but your credit score wonât be impacted either. Thatâs especially helpful if you intend to look elsewhere for personal loans. Either way, keep in mind that not all borrowers are approved for the highest loan amount.
These loans can be used for personal, household or family purposes. For example, paying for household renovations or a life event, like the birth of a child. However, some applicants may only be approved for credit card consolidation.
If you use your loan to pay down credit card balances directly, you cannot put that money towards an American Express card. However, those who receive their funds directly may choose to use some of their funds to do so. But keep in mind that not all applicants will be approved for that disbursement option.
Most major credit card banks are eligible for direct payments via this loan. You would find out if your credit card is eligible during the application process.
Your payments are fixed for the term of your loan and will depend on how much you borrowed, your interest rate and the length of your term.
No, thatâs set by the lender and cannot be changed.
Youâll have to pay a $39 late fee, and American Express may inform the credit bureaus, which would negatively impact your credit score.
You can only apply for a business loan if you have an American Express business card, and those funds can only be used for business purposes.
Minimum Credit Score
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Your APR may differ based on loan purpose, amount, term, and your credit profile. Rate is quoted with AutoPay discount, which is only available when you select AutoPay prior to loan funding. Rates under the invoicing option are 0.50% higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 3.99% APR with a term of 3 years would result in 36 monthly payments of $295.20.
LightStream is an online lending division of SunTrust Bank. It offers personal loans for between $5,000 and $100,000 with rates as low as 3.99% with autopay; however, note that lender rates vary based on the loan purpose. Still, LightStream doesnât charge origination fees, plus it offers loans with terms from 24 to 144 months, so it could be a low-cost and flexible option for borrowers.
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Marcus by Goldman SachsÂŽ offers personal loans for up to $40,000 for debt consolidation and credit consolidation. … Read More
Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans).Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions. For New York residents, rates range from 5.99% to 24.99% APR.
With no origination or late fees, Marcus by Goldman Sachs may be an affordable option for a personal loan. The lender offers loans for up to $40,000 with rates as low as 5.99%. Further, you can see rates with a soft pull.
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LendingClub is a great tool for borrowers that can offer competitive interest rates and approvals for people with credit scores as low as 600.… Read More
LendingClub may be a great option for borrowers with less-than-stellar credit. It has a minimum credit score requirement of 600. Its personal loans come with rates as low as 6.95% and as high as 35.89%. You can expect an origination fee between 1.00% – 6.00%.
Devon Delfino contributed to the reporting for this article.