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Best Egg Review

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Location
Wilmington, DE

Pros

  • Suited for startups
  • Competitive terms and fees
  • Short application process

Cons

  • Unsuited for large businesses
  • Stringent borrower qualifications
  • Some additional fees

Overview

Best Egg, owned by Marlette Funding, offers personal loans to qualified borrowers. Although many customers use Best Egg loans for debt consolation, these loans can also be used for entrepreneurial or business purposes.

Regardless of the intended usage, approval for a Best Egg loan is contingent on your personal creditworthiness, not that of your business. Because it’s not generally the best idea to mix personal and business finances, personal loans are generally only recommended for startups or very new businesses.

Best Egg specializes in lending to the very creditworthy customer: you need a credit score of at least 700 and have an annual revenue of $100K or above to qualify for Best Egg’s lowest rates. As such, this lender will work for a select few entrepreneurs. Nonetheless, there’s a chance you’ll fit Best Egg’s borrower profile.

For people who do fit Best Egg’s qualifications, you’ll find this lender offers rates that are competitive with others in the industry. Because you can get an estimated quote without penalty, it may be worth it to check your rates. However, there’s a possibility you’ll be able to get better rates elsewhere.

Interested in learning more? Read on for the details!

Services Offered

Best Egg offers personal loans (which can be used for business).

Borrower Qualifications

Here are the requirements to get a loan from Best Egg:

Time in business:n/a
Credit score:640
Business revenue:n/a

Because Best Egg offers personal loans, not business loans, your time in business, business revenue, and other business benchmarks are not considerations during the underwriting process.

Instead, Best Egg will consider your personal profile. You must also be at least 18 years old and a US resident.

Note that while a credit score of 640 is the minimum qualification for a Best Egg loan, you’ll need a score of at least 700 to qualify for Best Egg’s lowest rates, along with an annual income of at least $100,000.

Compare to other popular lenders
LenderBorrowing AmountTermReq. Time in BusinessMin. Credit ScoreNext Steps

$5K - $500K13 - 52 weeksx1.029 - x1.18729 months550Apply Now

$5K - $500K3 - 36 monthsx1.003 - x1.04/mo12 months500Apply Now

$2K - $5MVariesAs low as 2%6 months550Apply Now

$20K - $500K1 - 4 years7.99% - 29.99% APR2 years660Apply Now

Terms & Fees

These are the terms and fees for a loan from Best Egg:

Borrowing amount:$2K – $35K
Term length:3 – 5 years
Interest rate:unknown
Origination fee:0.99% – 5.99%
APR range:5.99% – 29.99%
Collateral:None

Best Egg offers installment loans with term lengths ranging from three to five years. Like a traditional installment loan, borrowers pay a fixed amount of money each month until the loan is paid off. The amount you’ll have to pay depends on your borrowing amount, term length, interest rate, and other factors.

In addition to interest, Best Egg charges a one-time origination fee that is deducted from the principal before the loan is sent to you. The company does not charge a penalty for repaying your loan early.

Application Process

Best Egg’s application process is completed entirely online.

To begin the process, you’ll have to enter basic information about yourself and your finances. Best Egg will use this information to determine the rates and fees you may be eligible for and then present those offers to you.

During this stage, Best Egg does not do a hard check on your credit, so your credit score will not be affected. If you are comparing quotes from Best Egg to quotes from other lenders, you can do so without any penalties.

If you’d like to continue the process, you will have to choose the offer that best fits your needs and provide documentation to verify all your information. Additionally, Best Egg will run a hard check on your credit, which will affect your score. Assuming everything checks out, Best Egg will send your loan (minus the origination fee) to your bank account.

The time from application to funding normally takes between one and three business days.

Sales & Advertising Transparency

The Best Egg website provides a fair amount of information about their loans in general. Customer service reps are also transparent. However, the majority of the specific information, such as the range of APRs and the minimum borrower qualifications, are hidden in the fine print, which can make it difficult for potential borrowers to decide if they’d like to apply for Best Egg or not.

Customer Service & Technical Support

Customer service is available via phone or email. The website also has an FAQ, which answers basic questions about the service.

Most reviewers appear happy with the level of customer service, claiming that representatives were easy to contact and helpful. However, some have complained that customer service wasn’t always helpful when they experienced problems with the service.

In my experience, the customer service was easy to reach and relatively good at answering basic questions.

Negative Reviews & Complaints

I have borne witness to the praises and complaints on a number of review sites, including the company’s Better Business Bureau profile, their Credit Karma profile, and their TrustPilot page, as well as the consumer complaints on the Consumer Financial Protection Bureau (CFPB) website.

Although a fair amount of people are happy with Best Egg, some people have expressed frustration with aspects of the lender’s service. Here are the most common problems people run into:

  • Denial After Preapproval: Many customers were disappointed to discover that being “preapproved” did not necessarily mean that they were eligible for a loan. Best Egg sends out advertisements claiming that people have been preapproved based on criteria they’ve already been able to collect about them, but as the company gathers and verifies more information, they may discover you’re not a good fit for the loan after all. It’s worth noting that Best Egg addresses what preapproval means in their FAQ:

    If you’re pre-approved, according to information on your credit report, you look like someone who might benefit from and qualify for a Best Egg loan. It does not mean you are guaranteed to qualify for a loan. To determine your loan eligibility, we need additional information that we get when you check your rate through our simple application.

  • High Interest Rates: Some customers felt that their assigned interest rates were too high.
  • Origination Fee: Some reviewers claim they were unaware of the origination fee. However, I saw this fee disclosed prominently on the website in multiple places, and the customer service representative I talked to disclosed the information up-front.
  • Continuing Auto Withdrawals: A few people have complained that Best Egg continued to auto withdraw funds after their loan was paid off, or after they made a payment in advance. While the customers appear to have gotten their money back, many expressed frustration with how long it took to get the refund.
  • Application & Funding delays: Some customers have experienced hangups during the application and funding process, which means it took much longer to get their money than expected.

Its worth noting that many of these complaints, such as denials after preapproval and funding delays, are common in the industry. You are unlikely to come across a lender without a few complaints from customers who experienced funding delays, and Best Egg does not have any more complaints than the average lender.

Positive Reviews & Testimonials

Although some customers have encountered problems, most reviewers appear happy with Best Egg’s service. On TrustPilot, the service currently has an aggregated rating of 9.5 out of 10 with over 1,700 reviews. Best Egg fairs similarly on Credit Karma, where it has an aggregated rating of 4.9 out of 5 with over 300 reviews.

Here are the most common praises:

  • Fast Application Process
  • Helpful Customer Service

Additionally, for what it’s worth, many reviewers liked Best Egg for its debt consolation services. Although Best Egg’s rates can be high, they’re generally lower than credit card rates.

Final Verdict

This lender is best suited for entrepreneurs who need a small amount of money to start a business, provided they have strong personal creditworthiness and financials. While it’s evident that the service occasionally runs into problems, in general, it’s easy, fast, and painless.

On paper, Best Egg’s rates are similar to others in the industry. However, because each lender has different underwriting standards, your personal rate will differ between lenders. For this reason, I recommend that you make some comparisons before settling on a lender. Interested in your other options? Check out our full list of Startup Business Loan Reviews!

Quickly compare popular lenders
LenderBorrowing AmountTermReq. Time in BusinessMin. Credit ScoreNext Steps

$5K - $500K13 - 52 weeksx1.029 - x1.18729 months550Apply Now

$5K - $500K3 - 36 monthsx1.003 - x1.04/mo12 months500Apply Now

$2K - $5MVariesAs low as 2%6 months550Apply Now

$20K - $500K1 - 4 years7.99% - 29.99% APR2 years660Apply Now
Jason Vissers

Jason Vissers

Jason Vissers is a writer and cereal chef from San Diego. He graduated with a Political Science degree from San Diego State University in 2001. He's been writing about website builders, crowdfunding sites, online lenders, and credit cards for Merchant Maverick since 2015. Additionally, Jason can't eat raisins.
Jason Vissers
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