Personal loans can be one of the best ways to get back on track financially. If you’re considering making a large purchase or you’re in need to some extra cash, a personal loan can give you the financial support you need.
Best Egg is a personal loan option for individuals looking to consolidate smaller loans under one larger loan. If you’re considering Best Egg as an option for your consolidation loan, you will need to understand if you qualify, how it works, and if it is right for you.
Who is Right for a Best Egg Personal Loan?
A Best Egg personal loan is not right for everyone. Compared to other similar personal loans, the credentials to qualify for a personal loan from Best Egg can be a bit steep. However, if you meet the qualifications of the loan, it can be a great option for fast funding.
Best Egg personal loans are designed for individuals with good credit. This typically means you need to have a credit score above 640, but the average credit score for a Best Egg loan is around 715. In addition to having a high credit score, you will also need about ten years of credit history behind you. Individuals who qualify for Best Egg personal loans also have higher than average incomes.
Typically, borrowers will have an interest rate of 15% annually. If you have a better credit score or higher income, you may qualify for a lower interest rate. Individuals who make over $100,000 a year and have a minimum credit score of 700 can even receive loans through Best Egg with a rate under 6%.
How to Apply for a Best Egg Loan
If you believe Best Egg can provide you with the right personal loan, you will want to apply online. The online application will ask you for details about your income, your household income, your home type, what you pay for your home, your employment status and more. Be sure to fill in the details of the application honestly and completely.
Once you’ve been approved, Best Egg will provide you with loan options and details. Depending on what you qualify for, you could have multiple amounts, terms, interest, and payments to select from. Choose a plan that works best for you.
After selecting the loan program you would like to continue with, you need to provide bank account information where you would like the money deposited. Be ready to upload documents and forms verifying your identity.
Finally, Best Egg will run a credit check to ensure the information you provided is accurate. If everything is as you stated in your application, you will receive the money in your bank account once everything is approved. In some instances, this can be as soon as the next day.
Keep in mind that consolidating your debt can hurt your credit score. Best Egg will report the loan to credit bureaus, meaning the transaction will appear on your credit report.
How to Know If a Personal Loan from Best Egg is Right for You
Before you take out a personal loan from Best Egg, be sure to run through your other debt consolidation options. While a personal loan can be helpful for many individuals, it is not the best option for everyone.
If you have a good credit score, you may want to consider opening a new credit card to transfer your balance to. By moving your balances onto the same card with a smaller interest rate, you could end up saving money in the long run.
Another option for debt consolidation is through a home equity line of credit. If you are a homeowner, this may be an option for you.
What to Do Before Agreeing to Loan Terms
If you’ve decided that you would like to follow through with a personal loan from Best Egg, run scenarios and situations to ensure you’re making the right loan choice. Keep in mind that lower monthly payments typically mean higher interest rates and longer loan terms while shorter loan terms mean higher payments each month.
Know what you are able to afford and select the plan that works best for you and your situation. The loan you select should be the best loan available to you, so don’t rush to take the first option you are given. Don’t be afraid to shop around to find the perfect loan for you.
Lastly, create a strong budget to help you get out of debt with your personal loan. While debt consolidation can help you get your payments under control, it doesn’t reduce the amount of debt you owe. Without proper planning, you could find yourself even deeper in debt than you started.