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Best Egg Review

Best Egg promotes itself as a way to secure your nest egg with quick and efficient online financing. It offers debt consolidation loans ranging from $2,000–$50,000 with terms of 36 or 60 months.

Snapshot:

  • Type of Debt Relief – Debt Consolidation Loan
  • Eligibility & Requirements – Minimum credit score of 640
  • Fees – 99% to 35.99% APR; 0.99% to 5.99% Origination fee
  • Credit score impact – Soft inquiry to check rate; hard inquiry takes place after approval, may lower your credit score for a short while.
  • Consumer Reviews – Positive

How Best Egg’s Program Works

Head to Best Egg’s website to check your rate. The preapproval process runs a soft credit pull to make sure your credit profile is a good match. This doesn’t mean you’ll be approved for funding, but it does give you the chance to compare different rates and evaluate your options.

Best Egg will ask questions about the loan such as the amount you need and your reasons for needing it, i.e., debt consolidation. It will also ask about your employment status, income, and monthly rent or mortgage amount. You will need to provide personal information such as name, address, date of birth, along with your driver’s license or other identifying documents.

Best Egg simplifies the debt consolidation process by directing the necessary funds to your pre-selected creditors upon approval.  Around 50%  of approved applicants are delivered funds by the next business day. On average, the process takes between 1-3 business days.

Best Egg is not a bank. It is a subsidiary of Marlette Funding LLC headquartered in Wilmington, Delaware. Best Egg’s loans are issued by either Cross River Bank or Blue Ridge Bank.

Best Egg Eligibility & Requirements

Best Egg’s loans are reserved for borrowers with credit scores above 640. Your income is also taken into account. Not all will qualify for Best Egg’s enticingly low rate of 5.99%. You need a credit score of at least 700 along with an annual income of $100,000 to secure the lowest rate.

A low debt-to-income ratio (DTI) can also help qualify. Lenders prefer DTIs under 36%. A low DTI suggests you have the means to handle more credit without defaulting on your loan. It is not a guarantee of approval, but it can help sway decisions in your favor.

Minimum loan amounts differ in some states:

  • Massachusetts: $6,500
  • New Mexico and Ohio: $5,000
  • Georgia: $3,000
  • Residents of Iowa, Vermont, West Virginia, and D.C. are ineligible for the Best Egg loan.

Fees for Best Egg’s Services

APRs range from 5.99% to 35.99%. The APR reflects the yearly cost of borrowing credit, and it represents the interest rate plus various fees. The only other fee for borrowing with Best Egg is an origination fee of 0.99% to 5.99% of your loan amount. This is pulled out before you receive funds.

Your loan terms will affect your APR. For instance, the origination fee on a loan term of 4-years or longer will be at least 4.99%.

Pros & Cons of Debt Consolidation with Best Egg

Best Egg has a good reputation for not making you wait for your money. Funds arrive quickly, and customer service is reliable and attentive. Where Best Egg falls short is with its restrictive loan terms and burdensome origination fee.

Pros of Best Egg

  • Fast financing
  • Soft pull won’t hurt credit score
  • Competitive interest rates
  • No prepayment penalty

Cons of Best Egg

  • Origination fees ranging from 0.99% to 5.99%
  • Limited to either 3 or 5 year loan terms
  • No autopay rate discount

Is Best Egg Right for Me?

Best egg is right for borrowers with fair to excellent credit. If you’re in the process of rebuilding your credit profile Best Egg may not work for you as it requires a credit score of 640 to qualify. Simply qualifying doesn’t guarantee a decent rate. Those on the lower end of the credit spectrum can expect to pay higher rates, which can exceed 30%. This may be higher than the rate you’re already paying on your credit cards.

If you can qualify for the lower rates then Best Egg can be a reliable option that saves you money.

Here are some examples of what to expect with a Best Egg loan.

  • a 5‐year $10,000 loan with 9.99% APR has 60 scheduled monthly payments of $201.81.
  • a 3‐year $5,000 loan with 5.99% APR has 36 scheduled monthly payments of $150.57.

You can plug some numbers into Best Egg’s personal loan calculator for a more comprehensive look at your options.

Alternatives to Best Egg

There is no shortage of debt consolidation options. If Best Egg doesn’t seem like the best fit for you, try out one of these alternative solutions.

Debt Management

Debt management is a program offered by credit counseling agencies and designed to help consumers manage their expenses and reduce their debts. These programs are open to all borrowers regardless of credit score. Debt management works by making your debt more affordable. This could mean working with creditors to reduce the interest you owe or waiving costly penalties and late fees.

Nonprofit Debt Settlement

Nonprofit debt settlement is offered by nonprofit credit counseling agencies as an alternative to traditional debt settlement, which often is more costly than its worth. A major difference includes the ability to make monthly payments rather than the usual lump sum. Borrowers also won’t have to wait around for the costly negotiation process to conclude before receiving an offer to settle their debts.

Other Debt Consolidation Loan Companies

  • Discover Debt Consolidation Loan – Discover offers competitive interest rates ranging from 6.99% to 24.99%. It offers a bit more flexibility with loan terms between 36 to 84 months. Unlike Best Egg, Discover doesn’t charge an origination fee, though max loan amounts are limited to $36,000.
  • LightStream Debt Consolidation Loan – LightStream loans offer even more flexibility. Loan amounts range from $5,000-$100,000. Interest rates are low as 4.49% and cap at 20.49%. The Autopay discount lets you save even more, and there are no fees to speak of.

Best Egg Reputation & Consumer Reviews

Best Egg has an A+ rating with the Better Business Bureau. Customer reviews are largely satisfactory.

A repetitive theme among positive reviews is Best Egg’s fast and efficient application process. Best Egg really can have your funds in your account as soon as the next business day, granted there are no hiccups with the application process and information has been provided accurately.

Some customers complained of receiving sub-par offers even with high credit scores. Best Egg is only available for United States residents, which some customers were not made aware of before finishing the application. Other applicants also complained about the process dragging on with the need for ever more documentation before they were ultimately denied.

About The Author

Max Fay

Max Fay has been writing about personal finance for Debt.org for the past five years. His expertise is in student loans, credit cards and mortgages. Max inherited a genetic predisposition to being tight with his money and free with financial advice. He was published in every major newspaper in Florida while working his way through Florida State University. He can be reached at [email protected].

Sources:

  1. N.A. (N.D) Debt Consolidation. Retrieved from https://www.bestegg.com/personal-loans/debt-consolidation-loan/
  2. N.A. (N.D) Personal Loan Approval Process. Retrieved from https://www.bestegg.com/resources/personal-loan-approval-process/
  3. N.A. (N.D) Personal Loan Application Requirements. Retrieved from https://www.bestegg.com/resources/personal-loan-application-requirements/
  4. N.A. (N.D) Reviews: Best Egg. Retrieved from https://www.creditkarma.com/reviews/personal-loan/single/id/BestEgg?pg=1