What you should know a good American Express personal loan
American Express offers existing eligible cardholders unsecured unsecured loans issued by American Express National Bank. The bank offers its unsecured loans in amounts from $3,500 to $25,000, which you can repay over a term of 12, 24 or Three years. With direct payments for debt consolidation and competitive rates of interest, an Amex personal bank loan could be a good solution for consolidating high-interest debt.
Here are some other things you should know about American Express personal loans and what to think about if you aren't already an American Express cardholder.
Members only with no perks
American Express limits its personal bank loan applications to existing eligible cardholders. If you aren't already a united states Express cardholder, you may want to consider becoming one if you wish to obtain a personal bank loan using the bank.
Keep in your mind that American Express personal loans don't include the rewards programs and other benefits that come by having an American Express charge card. These financing options are primarily made to help cardholders consolidate debt or fund things like a marriage or do it yourself project.
Competitive interest rates
American Express offers competitive personal loan APRs to cardholders. The lender considers a minimum of nine months of account history, as well as other factors such as your credit history and current financial picture, when looking at the application and deciding on the terms of your loan.
If you're preapproved and then decide to formally apply, your offer APR may be different than your preapproved APR. But Amex says it's not going to exceed the utmost APR you had been preapproved for.
While American Express doesn't specify credit score minimums for approval, its probable you've been approved not less than certainly one of its charge cards before applying for a personal bank loan. Cardholders with higher credit scores generally qualify for lower APRs – that could assist saving money long-term.
Plenty of restrictions
While you should use an American Express personal loan to plan the ultimate getaway, pay for a marriage or consolidate credit debt, there are plenty of restrictions on which you can use the loan for.
For example, you can't use the loan to finance any postsecondary education expenses, real estate purchases, business costs, securities or vehicle purchases (apart from as deposit).
If you need assistance funding your company, American Express offers loans to preapproved American Express business cardholders. These financing options are restricted to business purposes only.
Take note that you might have only one personal or business loan at any given time. If you already hold one sort of American Express loan, you can't make an application for a different one until the loan balance is repaid in full.
Fast decision and funding – but you're also on the clock
The preapproval process to have an American Express personal bank loan is fairly fast Amex says it requires a matter of seconds to get a decision.
If you formally apply and therefore are approved for a loan, you'll have three days to examine and sign the loan agreement. When you sign the loan agreement, your loan funds should be directly deposited to your bank account, or sent straight to your creditors, within three to five working days.
If you select to not sign the loan agreement, or don't incorperate your banking account information inside the allotted time period, Amex will withdraw the offer and does not fund the borrowed funds. If you choose to accept the loan in the end but miss the deadline to sign the agreement or add a banking account, you'll have to wait another 60 days before you begin the process again and apply for preapproval for an additional personal loan.
No origination, application or prepayment fees
American Express unsecured loans don't include origination, application or prepayment fees. But if you're late on a payment, you will be charged a late payment fee of $39.
A closer look at American Express personal loans
If you're considering a united states Express personal bank loan, here are a few more things you should know.
- Soft credit inquiry – Since American Express uses a soft credit inquiry for preapproval, your credit ratings won't be affected. But if you sign your loan documents, it will send the loan terms to credit agencies, which can affect your scores.
- Debt consolidation amounts – If you're using your personal loan to consolidate credit card debt, you have to borrow a minimum of $1,000 for every charge card account and a minimum of $3,500 total.
- Eligibility requirements – And also being an eligible Amex cardholder, applicants must be a U.S. citizen or legal resident from the U.S. or its territories, and become a minimum of 18 years of age.
Who is an American Express personal loan good for?
American Express personal loans can be a wise decision for Amex cardholders who require to consolidate high-interest credit card balances – as long as those balances aren't on Amex credit cards. The lender will send payments straight to up to four of the charge card accounts using their company issuers.
How to try to get an American Express personal loan
If you're an eligible American Express cardholder, you can apply for preapproval directly through your internet account. When you sign in and answer a few questions, you need to get a decision immediately.
Keep in your mind that being preapproved doesn't mean you have been approved to have an actual loan. If you are preapproved, you will need to develop a full application to determine if you'll receive a loan offer.
Not sure an American Express personal loan is right for you? Think about these alternatives.
If you're not currently an American Express cardholder and want to explore other loan options prior to making a choice, here are a few to consider.
- Wells Fargo: If you need a personal loan for more than $40,000 and have a Wells Fargo account, a Wells Fargo personal loan can be a wise decision.
- Avant: If you aren't preapproved to have an American Express personal bank loan, Avant may be a better option.
