This means there will be no impact to your credit score during the application and approval process.
In contrast, many online lenders will let you check your rate without affecting your credit score, but will conduct a hard inquiry if you apply for a loan.
We also recommend applicants meet the recommended criteria to improve their chances of being approved.
You can only apply for an American Express personal loan if you’ve received a pre-approved offer.
If you accept a loan, American Express, like the majority of lenders, will report your loan activity to credit bureaus, so late or failed payments can have a negative impact on your score.
While American Express doesn’t make loans as large or for as long as some other lenders, the company has competitive interest rates.
Annual percentage rates range from 6.90% to 19.97% with your credit score generally determining your maximum rate: 6.99% for 801 to 850 credit scores, 8.99% for 751 to 800 credit scores, 11.99% for 701 to 750 credit scores and 14.99% for 660 to 700 credit scores.
When we checked rates for a borrower with a 759 credit score, the maximum APR listed was 8.98%.
For comparison, some online lenders make loans up to 0,000 with terms ranging from two to seven years.
American Express, on the other hand, will send funds directly to up to four different personal credit card accounts.
The only exception to this is that the American Express won’t directly pay their own credit cards.
American Express is one of the few companies that will pay off your credit cards directly with a personal loan.
In most cases, when you want to use a personal loan to consolidate debt, the lender will deposit funds to your bank account and then you will have to use that money to pay off your creditors.