American Express Personal Loan Review

American Express personal loan rates are a low-cost way to meet financial goals

American Express personal loan review
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In addition to offering credit card products and a savings account, American Express also offers personal loan options. However, an American Express personal loan is only available to card members in good standing. If that’s you, our American Express personal loan review will help you determine if it’s the right move for you.

Who Is an American Express Personal Loan Best For?

An American Express personal loan is likely best for those who want to make a large purchase or use a lump sum for debt consolidation. It can also be helpful when planning for major events, like weddings, as well as for home improvements. An American Express personal loan might be a good fit if you:

  • Are an Amex card member in good standing
  • Have received an offer to apply
  • Are looking for a fixed-rate alternative to using a credit card
  • Want the convenience of using your credit card to access fixed-rate loan funds

Pros

  • No origination fees

  • Option to have money sent directly to a credit card

Cons

  • Late fee

  • Must be a cardholder

  • Doesn’t offer flexible repayment options

Pros Explained

  • No origination fees: You don’t have to worry about paying any application or origination fees with an Amex personal loan.
  • Option to have money sent directly to a credit card: One of the ways you can receive your funds for an Amex personal loan is to have the money added to a current credit card (if you’re eligible). This can make consolidating credit card debt simple. However, you cannot use the funds to pay off an Amex credit card.

Cons Explained

  • Late fee: If you pay late, or if you don’t make your full payment, you will be charged a fee of $39. 
  • Must be a cardholder: An Amex personal loan is only available to current cardholders who receive an offer to apply. It’s possible to check for an offer on the Amex personal loan page. It’s important to note though that the personal loan funds cannot be used to pay down debt on an Amex credit card.
  • Doesn’t offer flexible repayment options: While you can choose a monthly payment option, the repayment options aren’t very flexible. You can use a calculator to estimate your monthly payment, but in the end, you have to choose from what’s available to you in your loan offer. You cannot change your payment due date either.

American Express Personal Loan Rates & Terms

American Express personal loan rates start relatively low. Fixed rates range from 5.91% APR to 19.98% APR. However, your final APR will be based on your creditworthiness. 

Your monthly payments and loan terms are offered by Amex, based on the loan amount and your situation. Amex offers a variety of options to choose from when making your loan offer. Once you accept the offer that is right for you, you’ll receive the funds within three to five business days, and can begin making payments as agreed.

How Much Can You Borrow With American Express Personal Loans?

You can borrow between $3,500 and $40,000 with an American Express personal loan. The amount you’re actually able to borrow depends on how Amex determines your creditworthiness. You might not get the full amount you ask for.

Funds can be used for a variety of purposes, including debt consolidation, home improvements or repairs, life events, and a number of other items.

American Express makes it clear on its website that you can’t use the money to pay off Amex credit cards, use it for postsecondary schooling, business purposes, or for real estate.

American Express Personal Loan Fees

American Express doesn’t charge application, origination, or prepayment fees or penalties. However, there’s a late payment fee of $39 if you don’t pay by your bill date or if you don’t make the required monthly payment.

How to Get a Personal Loan from American Express

American Express personal loans are only available to cardmembers. Additionally, you have to receive an offer to apply or check to see if you qualify for one on the website. You can check for an offer by going to the Amex personal loans page and clicking on the blue button in the upper right corner.

The button will take you to a login page, where you enter your username and password for your credit card account. Once you do that, you’ll see if you’re eligible or not. If you are, you’ll also be able to see potential loan amounts and interest rates.

The Bottom Line

For cardholders, an American Express personal loan can be a convenient way to get a lump sum of money to help reach goals. Fixed rates make for payments that are predictable and potentially less expensive than using a traditional credit card to finance a purchase.

However, if you don’t have an Amex credit card, or if you want to shop around for different personal loan rates, you might be able to find better deals, especially if you have good or excellent credit.

Article Sources

  1. American Express. "Frequently Asked Questions: What If I am Late on a Payment or Don’t Have Enough Funds to Make My Monthly Payment?" Accessed April 1, 2020.

  2. American Express. "Personal Loans." Accessed April 1, 2020.

  3. American Express. "American Express Personal Loans Terms and Conditions." Accessed April 1, 2020.