Best Egg is an online lender created by Marlette Funding, a financial services company founded in 2013. Headquartered in Wilmington, Delaware, Best Egg provides personal loans for debt consolidation, credit card refinancing, home improvement and other purposes.
Best Egg’s best rates on personal loans are difficult to get if you don’t have a high income or an excellent credit history. If you have fair credit or you make less than $100,000 per year, you may still qualify for a Best Egg loan, but you can expect high rates. Best Egg also charges origination fees and late payment fees, which you may be able to avoid by using other online lenders.
Overall, if you have a high income and a good credit score, Best Egg is a great option for a personal loan. It can provide fast cash for important purchases or a great way to refinance your existing debts. The company gets high marks for its customer service as well.
Best Egg by the numbers
- APR range: 5.99% to 29.99%
- Loan amount: $2,000 – $35,000 (up to $50,000 for qualified borrowers)
- Minimum credit score: 640
- Minimum gross income: Not specified ($100,000 for best rates)
- Better Business Bureau grade: A+
- Origination fee: 0.99% to 5.99% of loan amount
- Late payment fee: $15
- Prepayment fee: $0
- Best Egg loans cannot be used for education expenses or to refinance an existing loan.
- Loans not available in Iowa, Vermont, or West Virginia or U.S. Territories.
Who should consider Best Egg personal loans?
Best Egg personal loans are best suited to high-income individuals who have excellent credit histories. Borrowers who have a FICO score of 700 or above and make over $100,000 are perhaps the best candidates for a Best Egg loan, as they will qualify for the best rates.
If you fit into this category, you could possibly get a fixed APR as low as 5.99%. You may also be eligible to borrow up to $50,000 instead of Best Egg’s standard maximum loan of $35,000. If you qualify, you may even be able to change your monthly payment date if you need to.
In most cases, Best Egg loans are best suited for debt consolidation, credit card refinancing and home improvement. However, you can get a Best Egg loan for almost any expense other than education expenses. Best Egg advertises that its loans are suitable for moving expenses, weddings and even expenses associated with having a baby, among other major purchases.
Who should avoid Best Egg personal loans?
Best Egg clearly doesn’t have low-income borrowers or borrowers with poor credit in mind for its loan product. According to the Best Egg website, “You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest APR.”
If your credit is fair and you make less than $100,000 per year, you may still qualify for a Best Egg loan. However, you can expect a higher APR.
If you believe you may have trouble repaying your Best Egg loan, it may be better to go with a lender that offers more clemency. Although Best Egg allows some borrowers to change their monthly payment date, it’s not guaranteed. It charges a late fee for every day you miss on your loan, and it only has a 3-day grace period before your loan goes into default.
You could potentially avoid default by calling Best Egg and trying to work out a payment plan, but that’s still a relatively quick timeline from debt to default and, inevitably, collections.
Alternatives to Best Egg
Best Egg is an online, non-traditional lender that has only been on the scene for less than a decade. Like many other online lenders, Best Egg caters to a very specific type of borrower. If you don’t think a Best Egg loan is the best option for you, here are some alternative online lenders you should consider.
SoFi offers personal loans ranging from $5,000 to $100,000 but has less stringent requirements for borrowers than Best Egg. You’re likely to be stuck with a high APR if you have fair credit, but you have a better chance of getting your foot in the door. It doesn’t charge an origination fee, but it does charge fees for late and payments that are returned. For example, if you send in a check that bounces or if you make a digital payment that fails, you could be stuck with a fee. SoFi was originally a student loan consolidation and refinance lender, and it’s still a good option for that. However, borrowers can use a SoFi personal loan almost anything other than educational expenses.
LightStream caters to borrowers who have a similar profile to Best Egg’s customers, but LightStream has some clear advantages: It doesn’t charge any fees whatsoever. There are no origination fees or prepayment fees, or even any late fees. LightStream’s APRs are significantly lower than Best Egg’s, and it’s willing to lend up to $100,000 for a personal loan. You could even receive your funds on the same day that you apply.
Nonetheless, LightStream is clear about what type of borrower it lends to. LightStream prefers borrowers who have “a proven ability to save, evidenced by some or all of the following: liquid assets, cash down payments on real estate, retirement savings and little, if any, revolving credit.” You can’t prequalify for a LightStream loan, either.
If you have poor credit, Avant is one of the best online options to go to for personal loans. It offers loans between $2,000 and $35,000 and even accept borrowers with credit scores as low as 580. That said, you can expect a relatively high interest rate even if your credit is good — Avant’s APRs range from 9.95% to 35.99%.
If you have a high income and excellent credit, either Best Egg or LightStream are probably your best options. Both lenders offer a more competitive APR and a larger loan.