American Express offers unsecured personal loans to existing cardholders. These loans are designed for common uses like debt consolidation, home improvements, and medical expenses. The application process is fast and streamlined for current American Express customers, and the loans are notable for competitive interest rates and no origination fees. At the same time, they come with several restrictions and relatively high late fees that borrowers should weigh before applying.
Loan amounts and APRs
Minimum and maximum
- Minimum loan amount: $3,500.
- Maximum amount: American Express does not publicly publish a firm cap, but it commonly lends up to $40,000 and may go as high as $50,000 depending on the applicant.
Interest rates
- APR range typically runs from about 6.9% up to 19.97%.
- Because the APRs can be quite low, approval tends to be restrictive. Applicants will likely need good to excellent credit to receive a competitive offer.
Eligibility and how to apply
American Express personal loans are available only to current, active American Express cardholders. The application is handled through the customer’s AmEx online account. Before submitting a full application, American Express will display:
- The maximum loan amount the customer is eligible to borrow.
- The maximum APR the customer might be charged.
When the applicant proceeds, a firm offer is typically provided within seconds. If the offer is accepted, funds can be deposited as quickly as one business day after acceptance.
Fees and repayment terms
No origination fee
American Express does not charge an origination fee, which means the cost of borrowing is reflected in the presented APR.
Late fees and returned payment fees
American Express charges a $39 fee if a scheduled payment is late or if they attempt to pull a payment and there are insufficient funds. This is on the higher end compared with many other personal loan providers, so borrowers should remain diligent about on-time payments.
Restrictions and special rules
- No co-signers allowed. Loans are issued to an individual only.
- American Express encourages use of the loan for debt consolidation, but it will not allow consolidation of American Express credit card balances using these loans.
- The lender will not directly pay off other credit cards from loan proceeds. Borrowers receive the funds and must pay creditors themselves.
- Prohibited uses include post-secondary education, real estate purchases, business or investment funding, and purchasing a vehicle. The loan can be used as a down payment on a car, but not to buy the car outright.
Pros and cons
Pros
- Competitive APRs for qualified borrowers.
- No origination fee.
- Quick, simple application for existing American Express customers.
- Fast funding once terms are accepted, often within one business day.
Cons
- Only available to current American Express cardholders.
- Approval is restrictive and likely requires good to excellent credit.
- High late fee of $39.
- No co-signers allowed, which limits options for those with limited credit histories.
- Limited permitted uses and cannot consolidate American Express credit card balances or directly pay off other creditors.
Who should consider an American Express personal loan
These loans are a solid option for cardholders who qualify with strong credit and who want a quick, low-cost personal loan without an origination fee. They work well for debt consolidation of non-American Express balances, home improvements, medical expenses, and other permitted personal uses.
They are not a good fit for applicants who are not already American Express customers, those who need a co-signer, or borrowers who plan to use loan proceeds for education, business, investments, real estate, or vehicle purchases.
Shop around before you accept
Even if American Express provides an attractive offer, it is wise to compare other lenders. Each lender uses different underwriting algorithms, so approval, loan amount, and APR can vary materially from one company to another. Comparing offers can reveal lower rates, different fee structures, or more flexible terms.
The Yukon Project offers a Lending Marketplace that checks rates with multiple lenders using a soft credit check that does not affect a credit score. Comparing multiple offers helps borrowers select the loan that best matches their needs.
Final recommendation
For existing American Express cardholders with good to excellent credit, American Express personal loans are worth considering because of low APRs, no origination fee, and fast funding. However, limitations on eligibility, uses, and cosigning, plus a relatively steep late fee, mean borrowers should review all options. Shopping around will help ensure the borrower gets the best possible rate and loan terms for their situation.
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