Best Egg is a consumer lending platform that focuses on providing personal loans to borrowers with fair to good credit. It is operated by Best Egg, Inc. and partnered with Cross River Bank. Best Egg distinguishes itself through its support for secured personal loans and a “loan stacking” feature that allows qualified borrowers to carry more than one loan at the same time.
The platform is frequently used for debt consolidation, credit card refinancing, and major life events.
At a glance
- Lender: Best Egg, Inc. (Partnered with Cross River Bank and Blue Ridge Bank).
- Loan Amount: $2,000 to $50,000.
- APR Range: 8.9% to 35.9%.
- Origination Fee: 0.99% to 9.99%.
- Minimum Credit Score: Generally 600+.
Secured personal loan mechanism
Unlike many fintech lenders that only offer unsecured debt, Best Egg provides a Secured Loan option.
- Collateral: Borrowers can use fixed assets—typically permanent fixtures in their home (such as cabinetry, shelving, or lighting)—as collateral for the loan.
- Improved Terms: By securing the loan with physical assets, borrowers who might otherwise be rejected or charged high interest rates can often access lower APRs and higher loan amounts.
- Ownership Note: The borrower retains ownership and use of the fixtures, but the lender places a lien on them. This is functionally different from a Home Equity Line of Credit (HELOC) as it does not typically require a full home appraisal or traditional mortgage-style closing.
Loan Stacking and Multiple Accounts
Best Egg’s platform includes a mechanism that allows for loan stacking, provided the borrower meets strict internal criteria.
- Second Loan Approval: If a borrower has an existing Best Egg loan and has demonstrated a consistent history of on-time payments, they may be eligible to apply for a second, separate loan.
- Total Balance Limit: The combined total of all active loans cannot exceed $50,000 (or $100,000 for specific high-tier invited applicants).
- Automated Underwriting: The platform’s algorithm evaluates the performance of the first loan in real-time to determine eligibility for the second.
Costs, Fees, and Settlement
Best Egg’s pricing model includes interest and an upfront origination fee.
- Origination Fee: This one-time fee (0.99% to 9.99%) is deducted from the loan proceeds at the time of funding. For a $10,000 loan with a 5% fee, the borrower receives $9,500.
- Funding Speed: Best Egg is optimized for rapid settlement. Once approved and verified, funds are typically sent via ACH on the same day or the next business day.
- No Prepayment Penalty: Borrowers can pay off their balance in full at any time without incurring additional fees beyond the interest accrued to date.
Eligibility and Constraints
The platform maintains several mechanical constraints for all applicants:
- Income Verification: Borrowers must provide evidence of a steady income stream.
- Credit Stability: Underwriting often looks for a lack of recent bankruptcies or serious delinquencies within the last 12-24 months.
- Minimum Amount: The $2,000 minimum loan floor is higher than some competitors like Upstart, which starts at $1,000.
See also: LendingPoint Review, Upgrade Review, Personal Loan Comparison
