American Express offers a personal loans for its wealthy customers, but only existing cardholders are eligible for a loan from the company. Should you consider getting an American Express personal loan? Here’s what you need to have first:
- You’re an American Express cardholder who is current on their payments. You must also be the primary cardholder with an online account for the loan offer.
- You’re going to use the loan to consolidate debt on your credit cards, which does not include the American Express card.
What Can You Expect From An AmEx Personal Loan?
You can get a loan from $3,500 to $40,000 with an interest rate ranging from 6.9 percent to 18.98 percent. There are no origination or prepayment fees, but there is a $39 late fee.
Most personal loans are funded within five days, and you have repayment terms of up to four years. The company will do a soft credit check, and the loan must be used for debt consolidation.
What Are Some Benefits Of Getting An AmEx Personal Loan?
A personal loan is generally given for three big reasons:
- Debt consolidation
- Home improvements
- Life events (wedding, birthdays, etc.)
The interest rate on a personal loan is generally stable with payments you can predict each month. However, the benefits of the personal loan from American Express go beyond even these. What are some other benefits of the AmEx personal loan?
- No Fees – There is an origination fee for the personal loan – similar to other institutions such as Citibank, Discover and Barclays.
- Credit Info – Everybody – cardholder and non-cardholders alike – can access their TransUnion credit report and VantageScore credit score, which provides you a brief look at your credit report and gives you an idea of where your credit score is.
- Customer Service – This company is known for having great customer service with amazing perks for its cardholders. If you have questions, you can reach out to them by mail, social media, phone and live chat.
- Installment Pay Option – AmEx offers a Pay It Plan It feature that lets you pay in installment for purchases using your credit card.
The only drawback? You can’t make loan payments through the app, unlike a credit card payment.
Should You Consider An American Express Personal Loan?
A hard pull is never done on your credit report because soft pulls are done to determine if you’d qualify. Before you sign on the line for any company, make sure you know what kind of terms the loan offers and if it’s the best deal for you.