Wilmington, DE-based Best Egg is one of the newer direct lending companies, which assists you in restructuring debt from credit cards, mortgages, and student loans. It started operations in 2013, but its range of interest rates and loan terms can match the options you get from older loan companies. Conversely, it uses the same benchmarks used by older personal loan companies, especially relying mostly on your credit history to get approval or favorable loan amount and interest.
The company recommends that you use the loan to pay off old debts with ballooning interest and penalties, but you can also use the loan for home remodeling, medical expenses, business expense, or travel cost.
How is the lender different?
As a new player, the lender is aggressive in providing positive customer service to compete with more established lenders. In fact, one of the most common positive comments about the company is the convenience and speed of securing a loan (if you qualify). Likewise, it earns a solid A rating from BBB for resolving issues fast. If you meet the requirements, a loan is typically approved within a day and the money is deposited to your account in one or two days. You also have the option to pay online, by electronic transfer, by Western Union, or by mail. Likewise, the lender doesn’t charge for prepayment fees.
However, the lender’s got limitations. For one, it doesn’t serve borrowers in Kansas. Likewise, it’s a tad more selective in choosing who to lend to. In fact, you need to wait for a pre-approved mail invitation before being eligible to get a loan. This is understandable when dealing with a new company that, often, has yet to build a sound financial foundation to lend out more cash. You can take out a loan for up to $35,000 subject to approval, which you can use to pay off high-rate debts, such as, credit card, mortgage, or student loan.
How much are the rates and fees?
APR starts at 5.99% with a cap at 29.99%. You can take out a loan from $2,000 to $35,000. A caveat though–a quick review of customer comments across consumer sites, however, indicates that the 5.99% APR is seldom offered even for borrowers with a credit score of 800. Best Egg also charges for origination fees and late payments, the latter being one of the lowest rates in the industry. The good news is, there are no charges for prepayments, so if you expect to get more income in the next few months but you want to reduce your ballooning credit card interest now, Best Egg can be a great option. If you’re interested in a good alternative to Best Egg you may also want to read one of our Avant reviews.
How to apply for a loan?
Best Egg follows the standard no credit check loans guaranteed process, where borrowers first submit their personal and financial information in the lender’s website. Best Egg promises to reply within minutes, showing your loan terms and options. After accepting the terms, expect the loan to be deposited in your bank within one to two days.
The Fine print
Although it comes across as a new lending company Best Egg isn’t novel. It follows the old loan assessment of relying too much on your credit history. Approval is based on the verifiable information you provide in the loan application, your credit score, and information about you provided by credit bureaus. If you’re not confident about your credit history, Best Egg will likely be not, too. But if you qualify for a loan, Best Egg has one of the lowest penalty and late payment fees, notably late fee is only $15 compared to $25-$35 charged by other personal loan companies. And if you find yourself ahead of the game, prepaying the loan has no charge, even as you reduce the principal and future interest rate.
Most recurring positive comment
- Fast loan approval and processing if you have good credit standing (700 or up)
- Friendly customer service
Most recurring negative comment
- Interest rate doesn’t match as advertised (5.99%)
Loan amount: $2,000 to $35,000
Loan Period: 3 years or 5 years
Grace period: 3 days
APR (est.): 5.99% to 29.99%
Area being served: U.S. except Kansas
Fees and charges
- 1% to 5% origination Fee
- late fee: $15
- returned payment: $15
- no prepayment or other hidden fees
How to apply for a loan
- Check your rate first in the Best Egg website (it won’t affect your credit score).
- Fill up the online application form and submit.
- Best Egg replies within minutes showing your loan options and terms. It will also say if your loan has been denied.
- Accept the terms.
- Receive the loan in your bank account in one to two days.
- You have the option for automatic repayments for convenience.
Terms & Conditions
- You must be a US citizen or permanent resident and at least 18 years old with a verifiable bank account
- Residents of Kansas are ineligible for a loan
- Grace period is 3 days
- Prepayment is allowed without charge
- Information on you provided by credit bureaus is required
- You need to submit your credit score
- Documentation to show how much money you owe, if any, versus how much you earn
Personal information required
- basic personal details
- bank account and other basic financial records
- email address
- documentation on your income, debts, credit history
- credit score
Phone: (855) 282-6353
Office address: 1523 Concord Pike, Suite 302 , Wilmington, DE 19803