Have an American Express card and need a personal loan? Here’s what you need to know.
|Product Name||American Express Personal Loans|
|Min Loan Amount||$3,500|
|Max. Loan Amount||$40,000|
|Interest Rate Type||Fixed|
|Minimum Loan Term||1 year|
|Maximum Loan Term||3 years|
|Requirements||Have an American Express credit card and online account, be a US citizen or permanent resident, be at least 18 years old.|
- Have an American Express credit card and online account.
- Be a US citizen or permanent resident.
- Be at least 18 years old.
What makes a personal loan from American Express unique?
Although American Express is known for its credit card options, a personal loan can help you finance the big moments in life, whether that’s a wedding or moving to a new state. However, not everyone is able to get a personal loan from Amex. It offers loans exclusively with mailed preapproval letters. Approved customers could have access to low interest rates and large loan amounts — up to $40,000.
What can I expect from an American Express personal loan?
American Express will send you a preapproval offer for unsecured, fixed-rate loans between $3,500 to $40,000. Depending on your credit, you can expect to receive an APR between 6.9%–18.97% for terms of 1 year(s) to 3 year(s).
An offer doesn’t mean certain approval, you could see restrictions for how you can use your loan. For example, Amex doesn’t allow you to use its personal loans for secondary education, real estate, vehicles or business expenses. You also won’t be able to apply if your credit score has dipped below 660.
Most people use the Amex personal loans for debt consolidation, weddings and home improvement.
What are the benefits of an Amex personal loan?
- Apply without impacting your credit. American Express won’t check your credit until after you’ve applied and received a decision.
- Informative loan calculator. Enter the loan amount and select your credit score. American Express will display an estimated monthly payment based on 12-, 24- and 36-month terms.
- Minimal fees and low rates. No matter your credit, American Express won’t charge you an application or origination fee for a personal loan, and if you have excellent credit, you may qualify for a low interest of just 6.9%.
What should I watch out for?
- Preapproved card members only. You won’t be able to apply for a personal loan from American Express unless you already have a card and have been given a preapproval offer.
- Poor credit not accepted. American Express encourages its borrowers to have fair to excellent credit before extending a personal loan offer.
- Not guaranteed. Receiving a preapproval offer doesn’t mean you’ll be approved for a loan. American Express will still need to verify your personal information and credit to fully process a loan request.
Compare more personal loan options
How does credit card debt consolidation work through Amex?
American Express extends loan offers to people looking to consolidate their credit card debt. We’ve outlined the process to make it easier for you to compare credit card consolidation loans.
- Apply for a personal loan through American Express.
- Select up to four non-American Express credit card accounts.
- Request at least $1,000 for each account.
- Reach the minimum loan amount of $3,500 or the maximum amount you’re offered.
- Submit your application for approval.
If you’re approved, the funds from your personal loan are applied directly to your accounts. However, American Express may not be able to send payments to the credit card company if it can’t accept electronic transfers or if you’ve entered incorrect information about your cards. If this happens, your loan amount will be reduced and American Express won’t charge you interest on the failed payments.
Overall, using a personal loan from American Express for debt consolidation is simple. American Express pays your creditors, reducing the stress of paying down each individual account. This won’t necessarily reduce the amount you owe — that depends on interest and your monthly payment — but it can make it easier to handle a large amount of debt.
How do borrowers rate American Express?
American Express has been around since 1850, but it has only recently started offering personal loans to its cardholders. Because of this, there are very few reviews left on consumer reporting sites like the Better Business Bureau (BBB) and Trustpilot for personal loans. The majority of comments are about its credit or gift card, and many reviewers state that they have had problems with customer service representatives.
However, American Express has an A+ rating and is accredited by the BBB. People with preapproval for personal loans have posted positive responses on financial forums. Many are pleased with the low interest rates and lack of fees associated with borrowing.
At the end of the day, the reviews you find online will always reflect unique personal experiences. Yours may vary, so take overly positive or overly negative comments with a grain of salt.
Am I eligible?
You’ll need to meet some basic eligibility requirements before you apply for a loan from American Express.
- Have an American Express credit card and online account.
- Are a US citizen or permanent resident.
- Are at least 18 years old.
In addition, American Express needs to verify your address and checking account in order to deposit an electronic check.
How do I apply?
If you’ve received your preapproval offer and want to apply, visit the Amex website. You’ll need to sign into your existing Amex account or register a new one. Navigate to the personal loans offer page to start the application process. You can request loan funds up to your preapproved amount and select your preferred monthly payment option. Agree to receive electronic communications, and if you’re approved, you can review the terms of your loan before signing the contract.
American Express requires you to state the purpose of your loan. If you choose to consolidate your credit you’ll need to provide up to four credit card accounts and the amount you wish to pay towards each. For any other loans, supply your checking account numbers so your funds can be deposited.
What happens after I get the loan?
If you’re approved for a loan, you’ll have three days to review and agree to the terms offered by American Express. It takes between three to five business days for your loan funds to be deposited into your bank account or be sent to your credit card accounts, but it may take longer for your bank or credit card company to process the payment and make it available to you.
From here, you can set up automatic payments to make the process easier, or you can choose to pay monthly by account transfer or check. You won’t be able to borrow again for at least 60 days and will need a new preapproval offer to take out another loan.
Alternatives to a personal loan from American Express
Haven’t received a loan offer from American Express? You still have options available when you need a little extra capital.
- Personal loan from an online lender. You have other options for personal loans when you’re looking to consolidate your debt, pay for a home improvement project or tackle any other big expense. These providers don’t restrict their loans to people with preapproval offers. You can apply online today and see if you’re eligible.
- A new credit card. You likely already have a credit card from American Express, but if you need a smaller loan, it may be worthwhile to get a new credit card to get a good introductory interest rate.
You can’t use a personal loan from American Express for education expenses or for purchasing a home or car. It’s better to browse loans for these specific purposes in order to find one that has a low interest rate and good terms.
A personal loan from American Express can be useful for people who already have preapproval offers and have a large expense they need to tackle. However, some loans can only be used for debt consolidation, and there’s no guarantee you’ll receive a loan when you apply. It’s best to browse all your options with our comprehensive guide to personal loans so you can enter into a loan contract with confidence that you’ve made the right financial decision.