is best egg loan a good idea

by Aidan Kang, CFA
Senior Writer
UPDATED: October 10, 2021

Best Egg is an online platform that provides unsecured personal loans to its customers at fixed interest rates for the entire duration of the loan. What this means is that when you get approved for a loan, the payment amount is predetermined every month so there’s no second-guessing whether the amount will go up or down.

Because it is an unsecured loan, you don’t need any collateral when you apply for Best Egg personal loans. It is not like an auto title loan or a mortgage where you have to put your property as collateral in order to get approved.

With a Best Egg personal loan, the company will approve your loan based on your credit standing and the information you have provided to Best Egg. When you get approved for a Best Egg personal loan, you can get the money as soon as the next day.

How Much Can You Borrow With A Best Egg Loan?

With Best Egg, you can borrow $2,000 to $35,000 US dollars but the maximum amount you can borrow will depend on your state of residence. In some cases, you may be able to borrow up to $50,000.

Depending on your credit standing, the Annual Percentage Rates (APRs) of your loan will range from 5.99% to 29.99%. You will also have to pay an origination fee of 0.99% to 4.99% of the loan amount, which is a one-time fee deducted from the loan amount.

In terms of the payment plan, you can choose a plan duration from 36 to 60 months. If you choose a 60-month term, the minimum origination fee is 4.99%.

What are the Pros and Cons of Using Best Egg?

Just like any other lending site, there are advantages and disadvantages when taking a personal loan from Best Egg. Below are the pros and cons of Best Egg personal loans.


  • Straightforward and fast application process.
  • You can complete the entire application process online.
  • You can get the money in 1 to 3 days. According to Best Egg, almost half of their customers get the money transferred to their account within the next day.
  • Checking your rate for pre-approval will not put a dent in your credit score because Best Egg will only perform a soft credit check. Only after you accept the offer will Best Egg perform a hard credit inquiry on your credit report.
  • If you have a good to excellent credit score, you can get a personal loan with very competitive rates.
  • Overall, Best Egg has a good reputation so it is a reliable company to get an online personal loan from.


  • Applicants with fair to bad credit scores may not be approved or may be offered less favorable rates.
  • Applicants with a high debt-to-income ratio may not get approved.
  • An origination fee of 0.99% to 5.99% of your loan amount.
  • Late payment fee of $15 if you are unable to pay within the grace period of 3 calendar days after the payment due date.
  • Returned payment fee of $15 in case of insufficient funds or returned checks.

How Best Egg Compares To Other Lenders

Best Egg is not the only online lending platform where you can get a personal loan. Other popular lending sites available online include SoFi, Upstart, and LendingClub. If you want a quick comparison of how Best Egg compares to other online lenders, check the comparison table below for a quick overview.

Best Egg vs Lending Club, Sofi, and Upstart Comparison Table

 Best EggLending ClubSoFiUpstart
Loan Amounts$2,000 – $35,000$1,000 – $40,000$5,000 – $100,000$1,000 – $50,000
Loan Terms36 – 60 months36 or 60 months24 – 84 months36 or 60 months
Rates (APR)5.99% – 29.99%10.68% – 35.89%5.99% – 16.19%8.27% – 35.99%
Origination Fees0.99% – 5.99%2% – 6%No origination or prepayment fees0% – 8%

When Can You Get a Best Egg Loan?

Unlike other loans like car loans or student loans that indicate what the money borrowed can be used for, you are not limited to Best Egg Personal loans. You can use this personal loan for a variety of purposes.

If you have a major purchase or you are encountering financial hardship, this kind of loan can help tide you over. Here are some examples of things you can use Best Egg personal loans for:

  • Home improvement
  • Debt consolidation
  • Medical expenses
  • Credit card refinancing
  • Travel or Vacation
  • Relocation expenses
  • Taxes
  • Other major purchases

The Best Egg website, however, states that a customer cannot use the money from the loan to purchase or carry securities, to pay for post-secondary educational expenses, or for any illegal activity.

Are You Qualified for Best Egg Loans?

Best Egg will review the information that you provide as well as the information provided by the credit bureau about you. According to several reviews, Best Egg usually approves applicants with good to excellent credit standing.

Below are the two major factors that Best Egg looks at when approving a personal loan application.

  1. Credit Score

You must have a credit score of 640 or higher to get approved for Best Egg personal loans. The higher your credit score, the higher the chances that you will get approved and get a more favorable rate

  1. Debt-to-income Ratio

The debt-to-income ratio refers to the percentage of your gross monthly income that is spent towards paying your monthly debts. Although it is not indicated on the Best Egg website, several review sites state that an applicant must have a debt-to-income ratio of 30% or lower to be approved for Best Egg personal loans. It is possible to get approval with a 40% debt-to-income ratio as long as other factors such as your credit score or income are outstanding.

Is Getting A Loan From Best Egg A Good Idea?

Now that you’ve read the pros and cons of getting Best Egg loans, you might be wondering whether getting one is a good idea. Why borrow from Best Egg and not from other lending sources? Who is Best Egg personal loan suitable for?

The answer will depend on your specific situation. Getting Best Egg loans is a good idea if one or more of the following conditions below apply to you.

  1. You Have A Good To Excellent Credit Standing

If you have a credit score of 700 or higher and a low debt-to-income ratio, you’re most likely to get instant approval from Best Egg and will be offered a competitive rate. However, if you have a bad credit rating, it is better to explore online loans with no credit check.

  1. You Urgently Need Money Within The Next 1 To 3 Days

If you are dealing with an emergency situation, you can get a Best Egg loan and have the money transferred to your bank account within 1 to 3 days. According to Best Egg, more than half of their customers received the money as soon as the next day.

  1. You Want To Get A Personal Loan Online From A Reputable Source, Without The Hassle Of Dealing With Bank Employees

Gone are the days when you have to deal with a bank employee and go through a seemingly endless verification process to get a personal loan. Now, there are many online lending platforms where it only takes a few minutes for you to get approved for a loan. 

However, not all of these lending platforms are reputable. There may be sites offering favorable rates but turn out to be scam sites where you’ll end up paying more than what you were promised.

With Best Egg, you can have some peace of mind when using the platform as it has a high customer rating and good reviews. The process is also fast and straightforward, but at the same time, the strict application process is a sign that they are really filtering applicants.

  1. You Need A Better Alternative Than Using Your Credit Card For A Major Purchase

Credit cards typically have higher interest rates compared to personal loans. If you are planning a major purchase, check Best Egg whether you can get a lower rate before using your credit card.

How to Apply for Best Egg Personal Loans?

To apply for a personal loan, you have to visit the Best Egg website. There is a button that says “Check My Rate”. Click this button and follow the instructions indicated in the form that will appear. You will be asked to fill in information when filling up the form so make sure you have these details on hand.

Some of the information that will be requested may include the following:

  • Full name
  • Physical address
  • Email address
  • Phone number
  • Date of birth
  • Social Security Number
  • Employment information
  • Income information
  • Credit score
  • Information on your financial accounts like mortgage/monthly house rent, cash advances, other loans, etc.

After completing your application, you will be offered a rate. If you decide to accept the offer, Best Egg may also ask you to submit supporting documents to verify the information that you have provided. 

Some examples of documents that may be required are pay stubs and utility bills. According to Best Egg, most customers are asked for no more than two (2) documents.

If you are not yet ready to apply, you can also check the Best Egg personal loan calculator for a quick and rough estimate of the rate that you can be offered based on your credit score, the loan amount, and the duration of the loan.

FAQs About Best Egg Reviews

Is Best Egg a legitimate company?

Best Egg has an A+ record with the Better Business Bureau. Best Egg customer reviews, consumer reviews, and history are good. But don’t just rely on BBB. Make sure you do your research well when finding the best personal loan provider.

Is Best Egg the best option for personal loans?

Best Egg is a good option to consider if you have a fair to excellent credit standing. Although there are no complaints against Best Egg, you need to watch out for high annual percentage rates and origination fees.

Does Best Egg offer Refinancing?

Unfortunately, you can’t refinance a loan using Best Egg. But you can apply for another loan. To be eligible, the first loan must be in good standing, you must have a good payment history, and the total amount for both loans doesn’t exceed $50,000.  

Does Best Egg verify income?

Best Egg sometimes needs to verify the income of their applicants. They may require additional supporting documents such as proof of income.

Can you apply for a Best Egg loan if you have bad credit?

You may struggle to secure approval if your credit score falls below 640. You may consider other options such as a cash-out refinance, balance transfer credit cards, credit counseling, and using your personal savings.

Can you pay off your Best Egg loan early?

Yes, you can pay off your loan with Best Egg early. You don’t have to worry about being charged with repayment penalties. 

Getting A Best Egg Personal Loan0

While Best Egg is a reputable online lending platform, it is best to shop around by checking the rates with other online lenders. Before you complete an application for a Best Egg personal loan, go through a pre-qualification process first with multiple lenders.

During the pre-qualification process, lenders including Best Egg, LendingClub, SoFi, and Upstart will only perform a soft credit check so this will not negatively impact your credit score. Check the rates offered by these lenders and go for the best rate you’re offered.