2020 American Express Personal Loans Review
Bottom line: American Express personal loans are only available to people with an American Express credit card account who have received a pre-approved personal loan offer through Amex’s automated system. They also require a credit score of 660 or higher.
People who qualify for American Express personal loans can borrow up to $40,000 with an interest rate as low as 6.98%. That’s ideal for debt consolidation. Amex personal loans also have decent repayment terms, ranging from 12 to 36 months.
However, it is important to note that American Express is not offering any new personal loans until the coronavirus pandemic ends, according to representatives from the company. It’s still good to learn the terms of these loans to see if you’d be interested in applying once they become available again, though.
Below, you can find more information about American Express personal loans and see how WalletHub rates them in three major categories: Terms, Requirements & Application, and Reviews & Transparency. You can also see how they compare to offers from other lenders.
American Express Personal Loan Terms
|APRs||6.98% - 19.98%|
|Loan Amount||$3,500 - $40,000|
|Loan Terms||12, 24 or 36 months|
|Minimum Credit Score||Fair*|
|Minimum Income||Not disclosed|
|Loan Purpose||Debt Consolidation, Home Improvement, Big Purchase|
|Time to Receive Loan Money||3 - 8 business days|
American Express Personal Loan Interest Rates, Fees & Other Terms
Category Rating: 4.8/5
The range of American Express personal loan APRs is 6.98% to 19.98%. Where your interest rate falls within that range depends on a variety of factors including your credit score, income and other existing debts. Amex uses fixed interest rates, meaning your rate will never change during the entire time you pay back the loan.
American Express personal loans do not have origination fees for application processing. Nor do they have any fees for paying the loan off early. There is a $39 late fee. But you can avoid that as long as you always make timely payments.
Amex gets a nearly perfect score in this category because of their low rates and lack of an origination fee. They also deserve praise for their high loan amounts ($3,500 to $40,000), though their payoff periods only go up to 36 months. Many competing lenders offer more time to pay loans off.
American Express Personal Loan Requirements
Category Rating: 3.5/5
According to American Express, people with credit scores under 660 may not meet the minimum requirements for a personal loan. Amex does not disclose a minimum income requirement. Only people with an American Express credit card account are eligible for personal loan offers. That card account must have been open for at least 9 months.
You will have to meet a few other basic requirements as well. American Express will only send out personal loan offers to people who are at least 18 years old. They must also be U.S. citizens or permanent residents. People can get an American Express credit card without a Social Security number (using an ITIN or passport instead). But Amex requires an SSN to get a personal loan offer.
American Express allows cardholders with an existing online account to log in and check their potential rates. People without an existing card can use the calculator on Amex’s website to see estimated monthly payments.
You can apply for an American Express personal loan online or by phone after you receive a pre-approved offer through your online account or email. You cannot apply with a co-signer. It usually takes up to 3 business days to get a decision. It takes 3-5 business days to receive your funds after you’re approved, according to Amex representatives. While you wait, you can check your application status online.
The main reasons that Amex loses a few points in this category are their lack of a co-signer option and the fact that they require all applicants to have an SSN.
American Express Personal Loan Reviews & Transparency
Category Rating: 4.5/5
- Better Business Bureau: American Express has an A+ rating. It has been accredited since 1948.
- Consumer Financial Protection Bureau: The CFPB has recorded only around 25 complaints about American Express personal installment loans. Some of the complaints listed include having trouble receiving funding, while others describe difficulty settling when customers couldn’t keep up with payments. Amex provides consistent “timely” responses to complaints.
- WalletHub: American Express has a user rating of 3.9/5. That’s the average of more than 20,000 reviews.
- Transparency: American Express is very transparent about all of their personal loan terms. You can easily access those terms on their website. One area where they could be clearer is by stating minimum income requirements.
American Express has a good reputation, and they score high marks from their own customers. They have a high level of transparency as well. All these factors lead to a good score in this category.
American Express Personal Loans vs. Other Lenders
Marcus by Goldman Sachs
|APRs||6.98% - 19.98%||5.24% - 24.49%||6.99% - 19.99%|
|Loan Amounts||$3,500 - $40,000||$3,000 - $100,000||$3,500 - $40,000|
|Loan Terms||12, 24 or 36 months||12 - 60 months||36 - 72 months|
|Minimum Credit Score||Fair*||Fair*||Good*|
In order to provide the most accurate American Express personal loan review, WalletHub used 17 key metrics grouped into three overall sections: Terms, Requirements & Application, and Reviews & Transparency. We rated each section on a scale of 0 to 5, with 5 being the best, and then averaged the scores of the three sections to produce an overall rating for the loan.
- The “Terms” section includes information about how expensive the loan is, including rates and fees. It also takes into consideration how much consumers can borrow and how quickly they must pay it back.
For companies where APR and fee ranges differ greatly by state, we used data from the most populous state serviced by the company. Amex terms do not fluctuate significantly by state, however.
- The “Requirements & Application” section examines how easy it is to apply for a loan and how long it takes to receive the money. It also looks at exactly who is eligible to apply.
- The “Reviews & Transparency” section measures the loan provider’s reputation as well as how clearly the lender discloses its terms and requirements. This takes into account user reviews and information from watchdog organizations.
The average of these three scores reflects how close a loan offer is to WalletHub’s definition of a 5-star loan. For more information, please read WalletHub’s full methodology.
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