No set-up fees or prepayment penalties: Some lenders borrow nickel and dime with unwanted fees, ultimately making borrowing more expensive than necessary. American Express personal loans have no loan origination fees, and the company won’t charge you a prepayment penalty if you decide to pay off the loan early.
Top customer satisfaction: In 2020 and 2021, American Express Company received the highest ranking for customer satisfaction among credit card users. Why is this important since we are talking about personal loans? Since personal loan borrowers must first be American Express credit card users, the level of service they receive from the company can improve the borrowing experience.
Can be used to pay off high interest debt: For borrowers who have other types of high-interest debt, an American Express loan may be helpful. If the interest rate on the personal loan is lower, the combination of a lower interest rate and a fixed repayment term can help a borrower pay off their debt faster, saving them money. the money.
Fast approval time in most cases: Unless the company asks for additional information, applicants normally know if they are eligible for a loan within seconds.
What could be improved
Only available for American Express cardholders: You must already be an American Express cardholder to apply for a personal loan, which eliminates a large number of potential applicants.
The required qualifications are unclear: It is almost impossible to know more about the criteria used by American Express to determine if an applicant is creditworthy.
No clear meaning of interest rate: Since the interest rates offered by American Express vary but go up to 13%, it would be good for an applicant to have an idea of the cost of the loan before applying.
Relatively slow funding time: Once an applicant has signed a personal loan agreement, it can take three to five business days for the funds to be deposited directly into their bank account. Let’s say someone signs the loan contract on a Friday. It could be between Wednesday and Friday of the following week before the funds arrive. While fine for those who can wait, if someone needs the money sooner for an emergency, like a broken down car on the side of the road, an American Express personal loan won’t be a good option.
Short repayment window: Loan terms vary between 12 and 36 months, which means that a borrower has at most three years to repay a loan. Many of the best personal lenders offer up to 84 months to fully repay a loan.