Managing consumer debt can feel overwhelming. When credit card balances pile up and monthly payments become a struggle, you need relief fast. Best Egg personal loans have become a popular option for consumers looking to consolidate debt or fund major purchases.
But here’s the key question: Is taking on a new loan the best way to manage your existing debt, or are there better options that could save you more money?
Best Egg Personal Loans: A Complete Review
Best Egg is a well-established online lender that has earned solid ratings across multiple review platforms. Let’s look at what they offer:
Company Overview and Ratings
Best Egg has built a strong reputation since launching in 2014: – Better Business Bureau (BBB) Rating: A+ rating – Trustpilot Score: 4.2/5 stars with over 15,000 reviews – Strong customer service ratings and quick funding times.
We think Best Egg is an amazing company that provides quality personal loans to consumers. They’ve successfully funded billions in loans and have helped many people consolidate debt. However, let’s examine your situation to see if their loans are the right fit for your specific needs.
What Are Best Egg Personal Loans?
Best Egg is an online lender that offers personal loans between $2,000 and $50,000. They focus exclusively on consumer debt – and are not intended for business purposes. They’ve been around since 2014 and focus on providing quick funding to borrowers with good to excellent credit.
Their loan features include:
- Fixed interest rates ranging from 8.99% to 35.99%
- Loan terms from 3 to 5 years
- Origination fees ranging from 0.99% to 8.99%
- No prepayment penalties
- Quick funding, often within 1-2 business days
The application process is entirely online. Best Egg loans can fund as quickly as one business day after approval, which appeals to borrowers who need money fast.
Understanding Best Egg’s Fees: What They Really Cost You
Let’s break down what Best Egg’s fees mean for your wallet. According to their website, here are the current fee ranges:
Interest rates: 8.99% – 35.99% + Origination fees: 0.99% – 8.99%
The Math Behind These Fees
Let’s say you want to consolidate $25,000 in debt. Here’s what you’d pay:
At the lower end (best case scenario):
- Loan amount: $25,000
- Origination fee (0.99%): $248
- You actually receive: $24,752
- But you owe: $25,000 at 8.99% interest
At the higher end:
- Loan amount: $25,000
- Origination fee (8.99%): $2,248
- You actually receive: $22,752
- But you owe: $25,000 at 35.99% interest
This means with the higher fees, you’re paying $2,248 just to get the loan – before you even start paying interest. That’s nearly 9% of your loan amount gone immediately.
Common Uses for Best Egg Loans
People typically use Best Egg personal loans for several purposes. Let’s examine each one and whether taking on more debt makes financial sense:
Debt Consolidation
This is the most common use. You take out a $25,000 Best Egg loan at 15% to pay off credit cards charging 25%. This could save money if you qualify for a significantly lower rate.
But here’s the question: If you’re struggling with $25,000 in debt at high interest rates, are you likely to qualify for Best Egg’s best rates? And more importantly, does moving debt around solve your underlying financial problem?
Major Purchases (Vacations, Special events (weddings, etc.) & Home improvements)
Let’s think about this strategically. If you’re considering a personal loan for these expenses while carrying existing debt, you might want to reconsider the timing. Wouldn’t it make more sense to resolve your current debt first, then save up or pay cash for these expenses later?
For example, if you’re planning home improvements but already struggling with credit card debt, adding another monthly payment could strain your budget further. Consider waiting, resolving your debt situation, and then tackling home improvements when you’re in a stronger financial position.
Who Qualifies for Best Egg Loans?
Once your personal details have been provided, there’s more to do before you can make the cut for a Best Egg loan.
You’ll typically need:
- A good credit (experts say 700+ puts you in a much better position to qualify)
- Steady employment or income
- Low debt-to-income (DTI) ratio (experts say under 36% is good). If you don’t know what DTI is, we have you covered.
- No major credit issues
If you’re struggling with debt, there’s a good chance your credit score has already been impacted. This means you might not qualify for Best Egg’s advertised low rates, putting you in their higher interest rate categories.
Personal Loans vs. Debt Relief
Let’s compare the true costs with realistic numbers for someone with $25,000 in consumer debt:
Best Egg Loan Scenario
- Original debt: $25,000
- Best Egg loan at 18% (realistic rate for someone with debt issues) for 5 years
- Origination fee: $1,500 (6%)
- Monthly payment: $632
- Total paid over 5 years: $37,920
- Total cost including fees: $39,420
You’ve moved your debt but added $14,420 in interest and fees – and you still owe the full amount.
Debt Settlement Scenario:
- Original debt: $25,000
- Potential settlement amount: ~$12,500 (settlements can vary significantly depending your unique position)
- Program fees: $3,750
- Total cost: $16,250
- Potential savings: $8,750 compared to the loan option
Note: Settlement amounts vary based on creditor agreements, your financial situation, and negotiation outcomes. Results are not guaranteed. Also, the scenarios above are only examples and do not fully reflect what always plays out with all cases.
When Best Egg Loans Make Sense
Best Egg personal loans could work in specific situations:
- You have excellent credit and can qualify for their lowest rates
- You’re consolidating small amounts of very high-interest debt
- You have stable income and are confident about repayment
- The loan rate is significantly lower than your current debt rates
- You have a clear plan for avoiding new debt. Even then, you’re still adding a monthly payment to your budget rather than reducing your overall debt burden.
Making the Right Choice: Loan vs. Debt Relief
The key question is: Do you want to reorganize your debt or actually reduce it?
Choose debt relief over personal loans if you:
- Are already behind on payments
- Owe more than 40% of your annual income in unsecured debt
- Can’t qualify for significantly lower interest rates
- Want to actually reduce debt rather than move it around
Consider a Best Egg loan only if:
- You have excellent credit and can get very low rates
- You’re consolidating small amounts at much higher rates
- You have stable income and a solid repayment plan
- The total cost (including fees) is significantly less than current debt costs
The Bottom Line: Solving vs. Moving Your Debt Problem
Best Egg is a reputable lender with good ratings and reasonable terms for qualified borrowers. However, personal loans address symptoms, not causes.
If you’re struggling with consumer debt, taking out another loan often means a) adding another monthly payment to an already tight budget, b) paying thousands in origination fees upfront, c) still owing the full amount (plus interest and fees) and d) not addressing why you accumulated debt in the first place.
Debt relief, on the other hand, can actually reduce what you owe, freeing up money for your monthly budget and helping you become truly debt-free faster.
Before you apply for a Best Egg loan, consider whether reducing your existing debt makes more financial sense. Get a free consultation to explore your options and see which approach could save you the most money.
Your financial future depends on solving the debt problem, not just reorganizing it.
FAQs
Yes—many people use personal loans to simplify payments and lower high-interest card balances. It’s smart to compare the full cost (interest + fees) first; try our Debt-to-Income Ratio Calculator to see how a new loan could affect your budget.
A consolidation loan combines multiple balances into one payment, while debt relief focuses on reducing what you owe through negotiation. If your goal is to cut the total balance, review our Debt Settlement Program Guide to understand how reductions may work for your situation.
Absolutely. We’re not a lender, but we can help you review options—prequalifying for a loan, comparing consolidation, or exploring relief—so you choose with confidence. Request a free consultation to get personalized guidance.
