What is American Express?
American Express got its start in the shipping industry, which it did as a freight forwarding service in 1850. After building trust shipping valuables, the company started unrolling financial products, eventually introducing its first charge card in 1958.
Today, the company is still aligned with its original core value of providing the best customer service in the world each day. This service standard is the underlying driver of the company’s mission to be essential to customers through its differentiated products and services that help people achieve their aspirations.
This review takes a look at the company’s personal loan product.
American Express personal loan highlights
- No origination fees: American Express offers personal loans with no origination fees and no prepayment penalties.
- Restrictions: American Express personal loans can’t be used for post-secondary education expenses.
- Three payment periods: Borrowers can choose from three unspecified payment periods.
- Offered only on a preapproval basis: To get an American Express personal loan, a borrower must be a preapproved card member.
- APR: Starting at 6.98%
- Minimum credit requirement: Fair to excellent
- Terms: 12 to 48 months
American Express Personal Loan Details
American Express product details
Many think of American Express solely as a credit card company, but true to the company’s mission of offering differentiated products, American Express also offers a number of financial services to customers. One of these is a fee-free high yield savings account with rates that can beat the national average and requires no minimum balance. American Express cardmembers also enjoy a number of perks, including automatic bill payments from their card, rewards programs and travel insurance.
- Minimum credit score: Fair to excellent
- Minimum credit history: Not specified
- Maximum debt-to-income ratio: Not specified
When it comes to its personal loan product, the American Express website is light on the above eligibility requirements. But here are a few details that are important to note:
- Residency requirements: Citizens or residents of the U.S. and its territories
- Age requirements: 18
- Membership requirements: Applicants must be basic cardmembers with online accounts
- Received offer: Only those with a preapproved loan amount and APR can apply
Applying for a personal loan from American Express
Upon receipt of a preapproved offer for a personal loan, borrowers are given instructions for providing added information with a more formal application online. After verifying the submitted information, the borrower will either be approved or declined based on any changes in their credit since the preapproval. Borrowers can then review the terms and accept or decline the loan within three days of the approval.
In most cases, borrowers will get the decision within minutes. Funds can only be disbursed through direct deposit. American Express will deposit to the checking account on file for the customer unless directed to use another account. When using the loan to pay off existing credit cards, borrowers can provide information on other creditors so the payments can be sent directly to them.
Pros and Cons of an American Express Personal Loan
Who’s the best fit for an American Express personal loan?
The best fit, in fact, the only fit for an American Express personal loan is a preapproved cardmember. Of those preapproved borrowers, those with no changes in their credit, income and debt-to-income ratio since the preapproval will be the best fit. It’s also a good choice for those looking for a lower rate way to consolidate credit card debt with no origination or prepayment fees.
Alternative personal loan options
Marcus by Goldman Sachs®
- APR: 5.99% – 28.99%*
- Credit requirements: Varies
- Terms: 36 to 72 months
- Origination fee: No origination fee
With loan amounts up to $40,000, No origination fee, relatively low starting interest rates and no late fees, the Marcus by Goldman Sachs personal loan can be a great alternative to American Express. The loans can be used for many purposes, including paying off high-interest credit card debt.
*For NY residents, rates range from 5.99% to 24.99% APR.
Discover Personal Loans
- APR: 6.99% – 24.99%
- Credit requirements: 660 or higher
- Terms: 36 to 84 months
- Origination fee: No origination fee
Discover is another credit card company offering a no-origination-fee personal loan with reasonable interest rates. Loan proceeds can be used to pay off credit card balances and with its terms from 36 to 84 months, the repayment can be stretched out to be more easy to budget.
- APR: 5.99% – 24.99%
- Credit requirements: 640 or higher
- Terms: 24 to 60 months
- Origination fee: 0.00% - 5.00%
One of the potential draws of the American Express personal loan is that it has specific options for those who want to use the loan to pay off other credit card balances. Payoff offers personal loans for that purpose as well, making it a solid alternative. Although the company can charge an origination fee, the APR on the loans is still extremely competitive even compared to companies with no origination fees. Borrowers can choose to borrow amounts ranging from $5,000 to $35,000.
Interested in a personal loan?Here are the top personal loan lenders of 2019!
|Lender||APR Range||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Includes AutoPay discount. Important Disclosures for Payoff.
3 Important Disclosures for FreedomPlus.
4 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
5 Important Disclosures for LendingPoint.
6 Important Disclosures for LendingClub.
All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.95% to 35.89%*. The origination fee ranges from 1% to 6% of the original principal balance and is deducted from your loan proceeds. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at the time of application. The average origination fee is 5.49% as of Q1 2017. In Georgia, the minimum loan amount is $3,025. In Massachusetts, the minimum loan amount is $6,025 if your APR is greater than 12%. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months. Borrower must be a U.S. citizen, permanent resident or be in the United States on a valid long term visa and at least 18 years old. Valid bank account and Social Security number are required. Equal Housing Lender. All loans are subject to credit approval. LendingClub’s physical address is: LendingClub, 71 Stevenson Street, Suite 1000, San Francisco, CA 94105.
†Per reviews collected and authenticated by Bazaarvoice in compliance with the Bazaarvoice Authentication Requirements, supported by anti-fraud technology and human analysis. All reviews can be reviewed at reviews.lendingclub.com
**Based on approximately 60% of borrowers who received offers through LendingClub’s marketing partners between January 1, 2018 to July 20,2018. The time it will take to fund your loan may vary.
7 Important Disclosures for Earnest.
8 Important Disclosures for Avant.
* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.
** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33
* Important Disclosures for Upgrade Bank.
Upgrade Bank Disclosures
** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.
|5.74% – 16.99%1||$5,000 - $100,000|
|7.54% – 35.99%||$1,000 - $50,000|
|7.99% – 35.89%*||$1,000 - $50,000|
|5.99% – 24.99%2||$5,000 - $35,000|
|5.99% – 29.99%3||$7,500 - $40,000|
|6.79% – 20.89%4||$5,000 - $50,000|
|9.99% – 35.99%5||$2,000 - $25,000|
|6.95% – 35.89%6||$1,000 - $40,000|
|6.99% – 18.24%7||$5,000 - $75,000|
|9.95% – 35.99%8||$2,000 - $35,000|