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American Express Personal Loan Review
Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.
Written By
Updated on Tuesday, June 18, 2019
What is American Express?
Founded in 1850, American Express began as a freight forwarding company. It moved into the financial realm in the late 19th century and early 20th century, and the company introduced its first charge card in the 1950s.
According to its history, American Express has worked as a longtime supporter of small businesses, beginning its Small Business Partnership project in 1987. The company proclaims that its mission is to provide a variety of products and services to all customers to help them achieve their goals. Based in New York City, American Express strives to provide the world’s best customer experience every day, according to its website.
American Express personal loan highlights
- No origination fees: American Express doesn’t charge an origination fee for its personal loans, and you won’t incur a prepayment fee if you decide to pay off your loan early.
- Fast decision: In most cases, American Express will approve or deny your application within minutes, allowing you to know quickly just where you stand.
- Members only: Only preapproved American Express card members are eligible for personal loans through the company. You must also have had your American Express account for at least nine months prior to applying to qualify.
APR
6.98%
To
18.99%
Credit Req.
Fair to excellent
Terms
12 to 48
months
Origination Fee
No origination fee
on American Express’s secure website
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American Express product details
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 — $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 you’re 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. You’ll find out if your credit card account is eligible during the application process.
Eligibility requirements
- Minimum credit score: Fair to excellent
- Minimum credit history: Not specified
- Maximum debt-to-income ratio: Not specified
To be preapproved for an American Express personal loan, you must meet the lender’s minimum eligibility requirements. This includes being:
- A U.S. citizen or resident of the U.S. or its territories
- At least 18 years old
- A basic card member with an eligible consumer American Express card with at least nine months of account history that is in good standing at the time of application submission
Applying for a personal loan from American Express
Only preapproved American Express card members are eligible to apply for a personal loan. During the preapproval process, you’ll be asked to provide basic information, like the amount of money you’d 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. You’ll 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 you’ll be granted a loan — but if your application is approved, you’ll 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 don’t 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.
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Who’s the best fit for an American Express personal loan?
An American Express personal loan can be a great choice for cardholders who don’t want to pay fees. Since the only fee associated with the loan is a $39 late fee — assessed only on late payments and those not made in full — you won’t 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. It’s also a better choice for cardholders with higher credit scores, as loan offers — including APR and maximum borrowing power — are based on creditworthiness and other factors.
Before moving forward with an application, it’s a good idea to check out reviews from other consumers and get a feel for the lender’s general reputation.
American Express consumer reviews
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 lender’s social media pages to see its activity and how consumers are responding. This may help you make a more informed decision before moving forward.
American Express FAQ
No. According to the site, “your credit score will not be impacted when you apply,” but the loan will be reported to the credit bureaus once you’re approved and agree to the terms.
You won’t be able to take out that loan, but your credit score won’t be impacted either. That’s 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, that’s set by the lender and cannot be changed.
You’ll 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.
Alternative personal loan options
LightStream
Credit Req.
Not specified
Origination Fee
No origination fee
LightStream is the online lending division of SunTrust Bank.... Read More
*Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay may be 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 4.99% APR with a term of 3 years would result in 36 monthly payments of $299.66.
LightStream is an online lending division of SunTrust Bank. It offers personal loans for between $5,000 and $100,000 with APRs as low as 3.49% with autopay; however, note that lender APRs vary based on the loan purpose. Still, LightStream doesn’t 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.
Marcus by Goldman Sachs
APR
6.99%
To
19.99%
Credit Req.
Not specified
Terms
36 to 72
months
Origination Fee
No origination fee
Marcus by Goldman Sachs® 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. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. 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.
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 APRs as low as 6.99%. Further, you can see terms you may qualify for with a soft pull.
LendingClub
APR
10.68%
To
35.89%
Credit Req.
Not specified
Terms
36 or 60
months
Origination Fee
2.00% - 6.00%
on LendingTree’s secure website
LendingClub is a great tool for borrowers that can offer competitive interest rates.... Read More
LendingClub may be a great option for borrowers with less-than-stellar credit, though it’s minimum credit requirements are not specified. Its personal loans come with APRs as low as 10.68% and as high as 35.89%. You can expect an origination fee between 2.00% - 6.00%.
