Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate personal loans to write unbiased product reviews.
Business Insider's personal finance experts compared American Express to the best personal loan lenders and found it to be a solid option for people with high credit scores, though there are some notable limitations such as limited repayment term lengths.
Whether or not American Express offers the best personal loan for you depends largely on your credit score, which will determine what you qualify for and can lower your rate.
American Express Personal Loans Overview
Types of American Express Personal Loans
American Express offers unsecured personal loans that borrowers can use for a variety of purposes, including home improvement loans, debt consolidation loans, loans for medical bills, and more. You must be an American Express card member to qualify.
Loan Amounts Available
American Express allows borrowers to take out personal loans between $3,500 and $40,000. Some personal loan lenders let you take out as little as $1,000 and as much as $100,000, so keep in mind you have other options if you need a smaller or bigger loan.
Amex Personal Loan Interest Rates and Fees
Rates on personal loans vary based on your financial situation and credit score. Here's a look at American Express' current rate offerings.
Current Interest Rates
All interest rates are fixed on American Express personal loans. The APR currently ranges from 5.91% to 17.97%, which is a lower starting point than with similar competitors.
For example, Discover's APR range is 6.99% to 24.99%, and Citibank's APR range is 11.49% to 20.49% APR.
Additional Fees and Charges
You won't pay any origination fees or prepayment penalties with the American Express personal loans, but you may be charged a $39 fee for late payment. It will take about one to two business days to get your money once your loan is approved.
American Express Personal Loan Terms and Conditions
American Express loan terms range from 12 months to 60 months. You will make monthly payments until the balance is paid off.
You cannot use American Express personal loan funds for post-secondary education expenses, buying real estate, business purposes, investing in securities, buying a car, or to pay off your American Express card balances.
Amex Personal Loans Eligibility and Application Process
American Express personal loans are available in all 50 states and Washington, DC. Here's what else you should know about applying for a personal loan from Amex.
Eligibility Requirements
First and foremost, you must be an American Express card member and receive an offer to apply for a loan in your American Express account. You also must be 18 years old and a citizen or resident of the U.S.
American Express typically requires a credit score of at least 660 for personal loan approval, though higher scores may qualify for better rates.
Application Process Step-by-Step
Since having an American Express credit card account is required to qualify, applying for a personal loan is streamlined. You'll find the application online.
- Check for an offer. Log in to your American Express account. Your information will already be on file, and you'll find out immediately if you're preapproved and what your rate is.
- Get a decision immediately. Enter the amount you'd like to borrow and a monthly payment option. You can choose between 12-month, 24-month, and 36-month repayment term lengths. You should get a decision as soon as those details are in the system.
- Get your money. If you're approved, American Express will fund your loan after you review the terms and agree to them. The proceeds will be directly deposited to your bank account.
American Express Personal Loan Pros and Cons
American Express is best for borrowers who value a top-notch customer experience and low interest rates. You will be able to get your money fast with an American Express personal loan, and you can explore what your rates would be without hurting your credit score.
However, American Express may not be the right choice if you want a longer repayment term length or if you only need to take out a small amount of money. You may find another online personal loan lender that better suits your needs.
Advantages
- No prepayment penalties or origination fees. American Express won't penalize you for paying off your loan early. You won't be charged an origination fee, which is a percentage of your loan amount deducted from your overall proceeds when you take out a loan.
- Low starting APR. You can get a loan from American Express with an APR range of 5.91% to 17.97%, a rate that is comparable to what similar lenders charge.
- Highly rated in customer satisfaction by JD Power. American Express earned the top spot on JD Power's 2024 consumer satisfaction study for personal loans. The study measured satisfaction by analyzing companies' offerings and terms, loan management, and application and approval process.
- Funds available quickly. You'll usually get your funds within one to two business days.
- Ability to prequalify for a loan. You'll be able to submit an application and see your rates without harming your credit score. Not all lenders allow this, as some require a hard credit inquiry to give you your rates, which may ding your score.
Disadvantages
- Limited repayment term lengths. You can choose between 12-month, 24-month, or 36-month repayment terms with American Express personal loans. Other lenders offer more options if you'd prefer to spread your payments out over a longer period.
- High minimum loan amount. You'll need to take out a minimum of $3,500 when borrowing from American Express, whereas other small personal loan lenders may allow you to borrow as little as $250.
- Must be a card member to apply. You have to have a relationship with American Express outside of your personal loan, which may be an added step you prefer to avoid.
- Hefty late fee. It'll cost you $39 in fees if you make a late payment. Some lenders charge a lesser fee for a late payment or even no fee at all.
American Express Personal Loan Customer Reviews and Ratings
American Express is ranked highly by JD Power (No. 1 on the 2024 list) but is not rated by the Better Business Bureau and has 1.09/5 stars with the organization. It has closed over 4,700 complaints with the BBB in the last three years.
American Express is also ranked poorly on Trustpilot, with 78% of customers giving it just one star out of five. Only 14% rate their American Express experience five stars.
American Express Personal Loan Alternatives
American Express Personal Loans vs. Discover Personal Loans
Both American and Express and Discover will get you your money relatively quickly after you're approved for a personal loan. You could receive your money as soon as the next day with Discover personal loans, while you'll almost always get it within two days from American Express.
You need to have an American Express credit card account in order to qualify for a personal loan. Discover doesn't have any relationship requirements.
Neither American Express nor Discover charge prepayment penalties or origination fees. However, both will charge a $39 late-payment fee. A unique feature of Discover is its 30-day money-back guarantee. If you decide within 30 days of getting your loan that you no longer want it, you can send back the funds via check and won't be charged any interest.
Read our Discover personal loan review.
American Express Personal Loans vs. Citi Personal Loans
Citi personal loans have a longer wait time for your money. The bank can take as many as five business days to get you your loan proceeds, while you can expect to have access to the funds from American Express within two days.
In order to qualify for a personal loan from Citi, you need to have had a deposit account with the bank for at least one year. American Express requires you to also have a credit card account with the company. If you're late on payments, $14 less than American Express.
Read our Citi personal loans review.
Why You Should Trust Us: How We Rated American Express Personal Loans
We rated American Express personal loans by applying our personal loan rating methodology. This involves assigning the product a 1-5 score across seven different categories, including:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths and loan amounts (15% of rating)
- Funding speed (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
As you can see, some categories are weighted more heavily than others. This reflects the features that are most important to those shopping for personal loans. For instance, the interest rate and any fees will probably be top of mind when you're deciding on the right loan for you.
American Express Personal Loan Frequently Asked Questions
American Express typically requires a credit score of at least 660 for personal loan approval, though higher scores may qualify for better rates.
Approval time can vary, but many applicants receive a decision within a few business days.
Yes, American Express personal loans can be used for debt consolidation, allowing you to combine multiple debts into one manageable payment.
