Is Best Egg Legit? Pros, Cons, and Approval Factors

Best Egg offers personal loans with quick funding for people who need money fast—but is Best Egg legit? The company advertises loans ranging from $2,000 to $50,000, with funding in 1 to 3 business days. Best Egg targets borrowers with fair to good credit who want to consolidate their debt or cover unexpected expenses.

Then you look at the details and see APRs as high as 35.99%. Origination fees can be as high as 9.99% of your loan amount. That means if you borrow $10,000, you might only receive $9,000 after fees, but you’ll owe $10,000 plus interest. The total cost can be thousands of dollars more than what you actually get.

This review explains what Best Egg is, whether it’s legitimate, what their loans really cost, and who actually gets approved. Then it covers when Beem offers a better path than taking on expensive personal loan debt.

What Is The Best Egg And How Does It Work?

Best Egg is an online lender that gives out personal loans. It started in 2014. Marlette Funding owns the company and runs the Marlette credit card. Best Egg doesn’t lend money directly. The actual loans are made by Cross River Bank, an FDIC-insured bank that works with the company.

You can get personal loans from Best Egg ranging from $2,000 to $50,000. Depending on your credit score and financial situation, the APR can be anywhere from 8.99% to 35.99%. The loan terms are either 3 or 5 years. If you want to save on interest, you can’t pick a shorter term. The origination fee is between 0.99% and 9.99% of the total loan amount. Before you receive the money, the fee is deducted from your loan proceeds.

Once you’re approved, it takes 1 to 3 business days to receive the money. Best Egg says that you need a credit score of at least 600, but in reality, you need a score of at least 640 or 660. If you don’t meet this requirement, you probably won’t get approved. Most of the people who borrow money from the company are trying to pay off high-interest credit cards, which is what the company does.

Is Best Egg Legit?

Best Egg is a legitimate company that’s been operating since 2014. The company is accredited by the Better Business Bureau with an A-plus rating. Best Egg has served over 600,000 borrowers and partnered with FDIC-insured Cross River Bank. The company hasn’t been involved in major scandals or regulatory penalties.

User reviews are mixed. The BBB shows many complaints, mostly about rates being higher than expected and origination fees not being clear up front. Some borrowers report feeling misled about what rate they’d actually receive. Others complain that customer service responds slowly when issues arise.

Best Egg is a legitimate company that provides actual loans. But legit doesn’t mean affordable or the best choice. The APRs up to 35.99% are expensive, especially for borrowers with fair credit who end up at the high end of that range. Many borrowers can find better rates through credit unions or other lenders.

Best Egg Costs and Fees

Best Egg’s APR range is 8.99% to 35.99%. Borrowers with excellent credit and high income get rates at the low end. Borrowers with fair credit typically get rates between 18% and 35.99%. Most people who need Best Egg because they can’t qualify for bank loans end up paying higher rates.

Origination fees are a big part of the cost. Best Egg charges between 0.99% and 9.99% of the loan amount. Most fair credit borrowers pay around 5% to 8%. The fee gets deducted from your loan proceeds. If you borrow $10,000 with a 5% origination fee, you receive only $9,500, but you still owe $10,000 plus interest.

Here’s what it looks like in real numbers. If you borrow $10,000 at 18% APR over three years with a 5% origination fee, you’ll pay about $2,900 in interest. Add the $500 origination fee, and the total cost is $3,400 on top of the $10,000 principal. You receive $9,500 after the fee is deducted, but you pay back $13,400 total. Best Egg doesn’t charge prepayment penalties, so you can pay off the loan early if you can afford it. There’s also a late payment fee of up to $15 if you miss a payment.

Approval Factors and Requirements

Best Egg advertises a minimum credit score of 600, but getting approved at that level is rare. The practical minimum is closer to 640-660. Below that, you’re likely to be rejected even if you apply. Minimum income requirements vary by state but generally range from $3,500 to $6,000 per month. Best Egg prefers borrowers with debt-to-income ratios under 40%, which means your total monthly debt payments shouldn’t exceed 40% of your monthly income.

Best Egg also looks at your credit history length. They prefer at least three years of credit history. If you’ve had a bankruptcy in the past three years or recent delinquencies, you’re unlikely to be approved. Meeting the minimum requirements doesn’t guarantee approval. Best Egg reviews your full financial profile and can reject applications even when you meet the stated minimums.

Better rates go to borrowers with credit scores above 700, low debt-to-income ratios, and higher incomes. Fair credit borrowers with scores between 640 and 680 typically get rates between 25% and 35.99%. At those rates, personal loans rarely make financial sense compared to other options.

Pros of Best Egg

Best Egg has a lower minimum loan amount than some competitors. The $2,000 minimum is lower than SoFi’s $5,000 minimum, which helps borrowers who need smaller amounts. Funding is quick at one to three business days once you’re approved. Best Egg accepts joint applications, which can help you qualify if your co-borrower has stronger credit or a higher income. There are no prepayment penalties, so you can pay off the loan early without extra fees. The online application is simple, and you can get a rate quote without a hard credit inquiry.

Cons and Limitations

The disadvantages of Best Egg are significant. APRs up to 35.99% are extremely high for a personal loan. Fair credit borrowers typically get rates between 20% and 30%, making these loans expensive. Origination fees up to 9.99% add hundreds or thousands of dollars to the total cost. The fees get deducted from your proceeds, so you receive less money than you borrowed.

Best Egg’s rates aren’t competitive with credit unions, which often offer personal loans at 8% to 15% APR. Customer service complaints are common. Many users report slow response times and difficulty resolving issues. Approval isn’t guaranteed even if you meet the minimum requirements. Using Best Egg for debt consolidation often doesn’t save money when your rate is 20% or higher. Like other personal loan lenders, Best Egg gives you cash but doesn’t resolve the root problems that created your debt.

Who Should Use Best Egg

Best Egg makes the most sense for borrowers with fair to good credit (660-720) who are consolidating high-interest debt and can get rates below 18%. If you have credit card debt at 28% interest and Best Egg offers you 15% APR, consolidation could save you money. People who need between $2,000 and $5,000 might choose Best Egg because its minimum is lower than some competitors’.

Best Egg is not ideal for borrowers with bad credit below 640. You’re unlikely to get approved, and if you do, the rate will be extremely high. It’s also not the best choice for borrowers with excellent credit above 740. Those borrowers can get much better rates from credit unions, SoFi, LightStream, or Marcus by Goldman Sachs. Anyone who can qualify for a credit union loan should go that route first.

Also Read: Is SoFi Legit? Investing, Loans, and Banking Review

Real User Experiences

Reviews on the Better Business Bureau and other sites show mixed experiences. Positive reviews mention the rapid approval and funding process. Some borrowers appreciate that Best Egg approved their applications when other lenders rejected them.

Negative reviews are more common and focus on several issues. Many borrowers report that their actual APR was much higher than they expected. Rates of 25% to 30% are common for fair credit borrowers. Some users say the origination fees weren’t clearly disclosed upfront and were surprised when they were deducted from their loan proceeds. Customer service complaints mention slow response times and difficulty getting help when problems arise. Several borrowers say consolidating their debt with Best Egg didn’t save them money as expected because the rate was too high.

Best Egg vs Better Alternatives

Credit unions typically offer personal loans at 8% to 15% APR, which is much lower than Best Egg’s 20% to 35.99% range. If you’re a credit union member or can join one, that should be your first option. SoFi and LightStream offer rates between 7% and 15% APR for borrowers with good to excellent credit. Marcus by Goldman Sachs charges no origination fees, which saves you hundreds or thousands of dollars compared to Best Egg.

Credit cards for balance transfers offer 0% APR for 12 to 21 months for borrowers with good credit. If you can pay off your debt within the promotional period, a balance transfer card costs much less than a personal loan at 18% to 25% APR. Upgrade and Upstart offer similar rates to Best Egg, but have different approval models that might work better depending on your situation.

Only if you can’t qualify for these better options and the offered rate is significantly lower than your current debts does Best Egg make sense.

What Beem Is and Where It Fits

Beem is a money app for people in the United States who need cash help without taking on expensive personal loan debt. You can learn more at https://trybeem.com. Beem is a good choice for people who need short-term help with cash flow gaps rather than multi-year debt consolidation loans.

Best Egg offers loans with APRs ranging from 8.99% to 35.99%, plus origination fees of up to 9.99%. Those costs add up to thousands of dollars in interest and fees over three to five years. Beem offers Everdraft cash advances up to $1,000 with no interest charges. For many people who need a few hundred or a thousand dollars to cover a timing gap, Beem provides that help without the long-term debt burden.

Beem also includes a subscription monitor that finds zombie charges draining your account. Those forgotten memberships and unused services can cost $30 or more per month. Canceling them frees up money that can cover expenses without borrowing. Best Egg gives you a loan but doesn’t help you figure out why you keep running short. Beem focuses on fixing the leaks that create cash flow problems in the first place.

Also Read: How Do Personal Loans Work?

Why Choose Beem Over Best Egg

The first big difference is cost. Best Egg charges APRs ranging from 8.99% to 35.99% plus origination fees. Fair credit borrowers typically pay an APR of 20% to 30% plus 5% to 8% in origination fees. Beam charges no interest on Everdraft™ advances. That difference saves you thousands of dollars over time.

The second difference is the debt burden. Best Egg loans lock you into monthly payments for three to five years. Even if your financial situation deteriorates, you remain obligated to make those payments. Beam advances are repaid from your next paycheck, so there’s no long-term debt hanging over you.

The third difference is addressing root causes. Best Egg consolidates your debt but doesn’t fix your spending or income problems. Beem includes leak detection through the Subscription Monitor. Finding and canceling hidden charges can free up $30 to $50 per month without borrowing anything.

The fourth difference is loan size. Best Egg’s minimum is $2,000. If you only need $500 or $800, you have to borrow more than you need and pay interest on the full amount. Beem lets you access what you actually need without forcing you to take on extra debt.

When Best Egg Might Make Sense

Best Egg makes sense in limited situations. If you’re consolidating credit card debt at 28% or higher and Best Egg offers you a rate between 15% and 18%, consolidation could save you money. If you need quick funding and credit unions take too long to process your application, Best Egg’s one- to three-day funding might be worth considering. If you need an amount under $5,000 and can’t meet SoFi’s higher minimum, Best Egg could be an option.

You also need a clear plan to not reuse your paid-off credit cards after consolidation. Many borrowers consolidate their debt with a personal loan and then run up their credit card balances again within a year. That leaves them with both the personal loan payment and new credit card debt.

Final Verdict

Best Egg is a legitimate company that’s been operating since 2014. The company provides real loans through a partner bank. But APRs between 8.99% and 35.99% mean most fair-credit borrowers pay expensive rates of 20% to 30%. Origination fees, which can reach 9.99%, significantly increase the cost and reduce your loan proceeds.

Best Egg isn’t competitive with credit unions or balance transfer cards for most borrowers. Taking on a three- to five-year personal loan at an APR of 20% or higher rarely improves your financial situation. It’s better to address spending issues and find hidden money leaks than to consolidate debt into another expensive loan. For people who need short-term cash help, Beem offers interest-free advances and tools to address the root problems.

FAQs: Is Best Egg Legit