American Express was created in 1850 in New York City and since then, they have been offering different types of outstanding financial products to their customers and they can be considered as one of the best in the field of finance.
American Express offers personal loans that can be used for family, household purposes (for instance consolidating existing credit card debt or for major purchases, home renovations or significant life events), or for your personal needs.
In other to have access to American personal loans, you need to become an active member and these loans are strictly limited to pre-approved AmEx card-owners.
Before you get to the end of this overview, you’ll have a clearer insight on how to become an American Express card owner without much hassle.
One amazing thing about being a card owner here is that you have the opportunity to borrow funds for your household projects like home renovations or even weddings, without paying for origination fees or prepayment fees.
Generally, American Express personal loans offer what most lenders don’t and this is why they stand out, this overview will give you a clear view of everything you need to know about American Express personal loans and the benefit of being a card owner.
What Is An American Express Personal Loan?
American Express personal loans are unsecured loans options available for people in need of financial assistance pending till they pay back.
As a borrower, American Express helps to cover expenses like medical assistance, paying for a wedding, or other minor or major needs.
Although the repayment term can be lower than most they offer good deals. American Express personal loan is a spectacular option for individuals who need to consolidate non-American express credit cards into a single fixed-rate loan.
If you just got a credit card, learn about: 9 Simple Ways To Use Credit Card Wisely
Features of American Express Personal Loans
If you are wondering what the features of personal loans American Express. Here is a list of what stands out. They include:
a) These Loans offers no Origination Fees. Unlike other loan lenders, they place no charges on this part
b) These Loans offer direct payment to creditors for debt consolidation loans.
c) No refinancing option.
d) These Loans are made available in all 50 states.
American Express Personal Loans Low APR
e) These loans offer only unsecured loans.
f) There is No rate discount for auto-pay.
g) These loans offer multiple customer contact channels.
h) These loans provide financial education.
i) The loans offer an FAQ that answers key borrower questions.
j) American Express disburse funds within 1-2 business days after approval.
Who Can Apply For American Express Personal Loan
As amazing as American Express is, their Loans are strictly available to just eligible cardholders.
Unlike other reputable personal loan lenders, American Express offers loans to members who are eligible with good credit. American Express APR is 7.79% – 19.98% which is better than some.
The minimum amount you can request for $3,500 while its maximum is $40,000. In other to be eligible you need to have an American Express credit card, if you want to consolidate credit card debt
Benefits Of American Express Personal Loans
If you decide to be a cardholder of American Express, you have nothing much to be concerned about, because they only do soft credit checks, this is unique because some personal loan lenders make hard credit check and it can easily lower your chance of getting your loan approved.
At American Express, payments are made to creditors directly. When you request a loan to consolidate credit card debt at American express, the lender will send the funds to up to four credit cards for you.
Pros Of American Express
a. On the advantages of having an AmEx credit card is that there are options to have funds sent directly to a credit card, that is, once your loan is approved and you are eligible, the loan you requested for will be sent to your current credit card and this will also enable consolidating credit card debt much easier.
b. With a loan, You can borrow up to $40,000
c. With an American personal loan, there are no prepayment penalties with Personal Loan.
d. With a loan, you can make various payments as you want with no associated penalties.
e. With an American Express personal loan, you have the option To pay off your Loan early by paying the Outstanding Personal Loan Balance that appears in your online account.
f. With a loan, there are Free credit monitoring for all AmEx cardholders for easy access to the company’s MyCredit Guide, which will enable you to view your Trans-Union credit report, alerts you of relevant identity theft and provides recommendations about how to improve your credit.
g. With a loan, the Annual Percentage Rate won’t be higher than the max APR quoted in your ore-approval offer
h. With a personal loan, the personal loan comes with no origination fees or prepayment, unlike most loan lenders.
Cons Of American Express
a. With a personal loan, you cannot use a small part of your loan to pay off an Amex credit card.
b. With this loan, there is no rate discount for auto-pay, American Express doesn’t offer an APR discount for setting up auto-pay
c. With this loan, there are no co-signed, joint or secured loan options, American Express doesn’t give you access to add a co-signer or apply with a co-borrower.
d. With a loan, there is no option to choose or change your payment date, so you must take note of this aspect when requesting a loan. The payment date you’re given at the outset of the loan is the one you’ll have for the loan’s full repayment term.
e. With a loan, there is a charge of $39 for a late fee in case you fail to make a payment.
f. American Express loans don’t offer payment flexibility or other consumer-friendly features to customers.
How Much Can You Borrow From American Express?
The amount can be able to borrow depends totally on how American Express determines your creditworthiness.
As a cardholder at American Express, you have the option of borrowing between $40,000 and $3,500, and that is if your loan is approved.
There is a probability of not getting the full amount you requested. With an American Express personal loan, you’ll be shown the maximum amount you can borrow, and your repayment period options before you apply for your loan.
How Long Does It Take For American Express To Disburse My Loan?
If you request for a personal loan at American Express, your funds will be sent directly to you within three (3) to five (5) working days after verification, and that would happen after you sign your loan agreement to the bank or credit card account(s) you imputed in your application.
How Long Will I Have To Pay Off My Loan?
The repayment period/term will be revealed to you blurring your application for the loan, and you’ll have the opportunity to select the one preferable to you.
Always remember that a longer repayment term might result in a lower monthly payment but more total interest than if you choose a shorter repayment period for the same loan amount.
If you want to be at the front desk helping people access loans easily, you need to check: How can I become a Loan Officer very Fast? Training, Salary
American Express Personal Loan Fees
a) One of the perks that come with American Express is that they don’t charge an origination fee, application fees, prepayment fees or penalties which is better than another personal loan lender. But there’s a late payment fee of $39 if you don’t pay by your bill date or if you don’t make the required monthly payment.
b) How to become eligible for an American Express personal loan
c) Unlike most personal loan lenders, American Express doesn’t reveal many borrower requirements publicly. But here are a few important ones to note;
d) To be eligible for an AmEx personal loan, you must be a pre-approved cardholder. You can find out if you’re preapproved by logging in to your American Express account. If you are, the company will display what rate and the amount it can offer you. You can then apply for a loan up to the amount you’ve been offered.
e) Your loan offer is based on your creditworthiness and other factors. Borrowers with bad credit may have trouble getting a loan, as American Express checks borrowers’ creditworthiness before making an offer.
f) To be eligible, You must be an American Express cardmember to apply
g) To be eligible, you must be a U.S. citizen or legal resident of the U.S. or its territories, and be at least 18 years old
American Express Personal Loan Lending Terms
American Express does not reveal a minimum credit score requirement since eligibility is not based on credit alone, but borrowers with good credit scores have a better chance of receiving minimum APRs, the highest loan amounts, and a choice of repayment options.
At American Express, loans range from a minimum of $3,500 to $40,000 to max and the Annual Percentage Rate is as low as 5.98%.
American Express serves unique interest rates and repayment terms of 12, 24 or 36 months to lenders.
Generally, Funds are paid in 1 to 2 business days from the time you sign your loan agreement at AmEx, and the funds will be paid directly to you,
American Express Fees And Penalty
You can be rest assured that American Express only charge a late payment fee associated with the personal loan and the fee is $39. Note that, American Express does not charge prepayment penalties. origination fees, or application fees.
Who Is An American Express Personal Loan Good For?
American Express personal loan is a great deal for anyone requesting for a loan and he/she/they are ready to become an AmEx cardholder and it will help you consolidate high-interest credit card balances, literally if you are not an AmEx cardholder, you won’t be able to request for a loan.
How To Apply For American Express Personal Loan
Here is an easy step by step procedure of how to apply for an American Express personal loan:
Step 1:
First, you need to log in on their official page, where you will input your username and password for your credit card account.
Immediately you log in, you will find out if you are eligible for a loan or not, and if you are eligible you will also find out the maximum amount you can request and their interest rates.
You can also check for an offer by going to the Amex personal loans page and clicking on the blue button in the upper right corner.
https://www.AmericanExpress.com/us/loans/personal-loans/
Step 2:
Once you have Login to your account online to see if you’re pre-approved. You need to know that Personal loans from American Express are only available to eligible cardholders. The next step is to apply online.
You’ll complete a quick application online which will require your details, your total income and the reason you are requesting a loan.
Then you can select the amount you desire to request and the repayment term you want, which usually range from 12 to 36 months.
Step 3:
The next step is to access the loan terms carefully, then you can choose to accept the offer, and proceed to sign the loan documents.
Usually, it doesn’t take long to know if your loan has been approved, and if approved you’ll receive an offer and will need to review the loan terms, then accept by signing digitally.
Step 4:
After this, the next process is to receive your loan funds. Your loan funds will be sent to you directly to the account(s) listed in your application form within three to five working days of signing the loan documents. The personal loan application and funding process at American Express are faster than many of its competitors, making American Express stand out as one of the best for borrowers who need their funds as soon as possible.
American Express Personal Loan Ratings
J.D. Power in June 2021 ranked American Express the highest in customer satisfaction among personal loan lenders. J.D. Power 2021 U.S. Consumer Lending Satisfaction Study, with a score of 874 points (out of 1,000 possible points and compared to a segment average of 858).
J.D. Power in 2022 also ranked American Express as the top credit card issuer for two years in a row and offered one of the best personal loans of 2022.
- Bank-rate Score of American Express
- Availability 4.7 -American Express gives Approval within minutes and funding within business days
- Affordability 4.8- American Express’s Starting APR at 5.98% and no fees except for a late fee
- Customer experience 4.0
American Express Official Contact
Here is the American Express official contact;
- Chat with a customer service agent by logging into your account
- Speak with a customer service agent by calling 1-800-528-4800
l Official website- https://www.AmericanExpress.com/us/loans/personal-loans/
Frequently Asked Questions
Eligible AmEx cardholder only.
You’ll get your answer Immediately after you log in
Three to five working days
American Express was created in 1850 and they can be trusted.
No, American Express does not offer discounts.
Conclusion
American Express is one of the best personal loan lenders out there, although you are not allowed to use a personal loan from American Express for business purposes or to buy a vehicle, purchase real estate, or buy securities. But they are there for a few of your needs.
The American express personal loan process is fast, easy and less costly without any excess fees simple, fast and has few associated fees. I do hope this overview answer a few of your questions.
References
- Investopedia – investopedia.com/American-Express-personal-loans-review/
- American Express – AmericanExpress.com/us/loans/personal-loans/
- Nerdwallet – nerdwallet.com/reviews/loans/loans/American-Express-personal-loans/
- Bank rate – bankrate.com/loans/personal-loans/reviews/American-Express/
- The balance – thebalance.com/personal-loan/
- Credit karma – creditkarma.com/personal-loans/i/American-Express-personal-loan
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