Updated: October 3, 2024
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Your unique needs and financial goals will determine the best personal loan for you, but if you need quick cash, choices like Best Egg and Discover are ideal. Although Discover has a lower maximum APR, that may not be the driving factor behind your lender choice. Should you have good credit and a respectable wage, Best Egg might be your better option.
MoneyGeek’s up-to-date information on each lender will help you make the best decision for your needs.
In the U.S., borrowers with good credit and a fair income will get the best personal loan from Best Egg, while those with excellent credit looking for a small but flexible loan may opt for Discover.
You should consider several factors in a loan agreement, like APR, payback schedule, loan amount and fund disbursement time, to see if they match your financial objectives.
Personal loan lenders determine your interest rate based on your credit history. Understanding how a lender calculates your APR will help you make an informed choice.
Although Discover has a lower APR range, Best Egg offers a greater maximum loan amount. Your specific financial needs, however, will dictate which lender is better suited for you.
Before making a decision, it's critical to carefully compare Best Egg and Discover, evaluating their APRs, credit score criteria, loan amounts and repayment periods.
Applicants with a good credit score and steady income may benefit from a Best Egg personal loan.
Best Egg is an online lending platform that provides personal loans to borrowers with a credit score of at least 700 and a lengthy credit history. To qualify for the lowest APR, applicants should have a minimum income of $100,000. The lender offers loans ranging from $2,000 to $50,000 with repayment terms between 36 and 60 months.
Some of Best Egg's borrowers reportedly receive their funds the same day, although most report next-day funding. If you wish to avoid costs and high APRs, a Best Egg personal loan might not be the best option for you. Best Egg's maximum APR is higher than other lenders.
Pros
Cons
An ideal candidate for a Discover personal loan will have an excellent credit score of at least 720 and is seeking a modest yet flexible loan.
A digital bank called Discover provides no-fee, instant personal loans with a 30-day money-back assurance. Discover can be a good choice for you if you're searching for a small loan with flexible terms. Borrowers can obtain personal loans from Discover for amounts ranging from $2,500 to $35,000. You can opt to repay your loans within 36 to 84 months, and the APR ranges from 5.99% to 24.99%.
To qualify for a Discover personal loan, you will need to have a household income of $25,000 and a credit score of at least 720. For borrowers that need cash now, Discover may be a suitable option. Your request may be approved the same day you apply, in which case your funding will be released the following work day.
Pros
Cons
Lender | APR Range |
|---|---|
Best Egg | 4.99% to 35.99% |
Discover | 5.99% to 24.99% |
An annual percentage rate (APR) is the total of the yearly interest a borrower will pay on their loan along with any additional fees charged by the lender. Many factors affect your APR, including your credit rating, loan type, loan size and the underwriting model employed by the lender. Because of this, you aren’t guaranteed to get the lowest APR that is offered. It should also be noted that APRs frequently change.
For a Best Egg personal loan, a borrower must have a credit score of at least 700 because the lender performs a soft credit check to establish your rates. A credit score of 720 or above is required to qualify for a Discover personal loan.
Discover's APR range is lower than Best Egg's, ranging from 5.99% to 24.99%. This implies that if the range is lower, borrowers will probably pay less in interest and other fees during the life of their Discover personal loan.
Low APR is just one factor; the lender's repayment plan, loan amounts and credit conditions are other factors that you need to consider before choosing a loan.
Lender | Credit Score |
|---|---|
Best Egg | 700 |
Discover | 720 |
Your credit score plays a significant role in determining whether you are approved for a loan. Essentially, a higher score will help you get loans with better terms, including an affordable APR. You can only establish credit through long-term financial habits — for example, paying off your credit card bills diligently in full each month.
Discover requires a credit score of at least 720, which is relatively high when compared to other lenders, whereas Best Egg requires a credit score of at least 700. You also need a substantial credit history to support your Discover personal loan application, since it does not accept consumers with new or no credit.
Given that the minimum credit score requirement for a Discover personal loan is 720, which is relatively high in comparison to other lenders, it might not be the ideal option for applicants with bad credit. Best Egg offers a more flexible credit score requirement, which is ideal for those with good credit scores and respectable earnings.
The fact that people with bad credit may receive higher interest rates or less-than-ideal terms should be emphasized. Therefore, borrowers should make sure the loan's terms are fair and suitable for their requirements.
Lender | Loan Amount Range |
|---|---|
Best Egg | $2,000 to $50,000 |
Discover | $2,500 to $35,000 |
The loan amount range is the difference between the minimum and maximum amount that a lender is willing to lend to a borrower.
Of the two lenders, Best Egg has the larger maximum loan amount, allowing borrowers to receive up to $50,000. With Discover, consumers can only borrow between $2,500 and $35,000. Because of this, Best Egg personal loans are the better choice for significant expenditures like travel, home improvements and other financial needs. However, when compared to other lenders who offer at least $100,000 in loan amounts, both Best Egg and Discover have lower maximum loan amounts.
To simplify your finances, it is better to choose a lender whose product line covers all of your lending needs rather than taking out numerous small loans from multiple lenders.
The personal loan amount range offered by Best Egg is far more flexible, ranging from $2,000 to $50,000. Discover may be a better alternative if you want to receive funding quickly while saving money on lower interest rates.
Whether or not these will be valuable to you will depend on your preferences and needs. The loan amount is one of the many factors to take into account, so it’s advisable to extensively research potential lenders before selecting one.
Lender | Repayment Terms |
|---|---|
Best Egg | 36 to 60 months |
Discover | 36 to 84 months |
The repayment term, often known as the payback period, determines how long you have to pay back a loan. Shorter payback terms are typically connected with lower interest rates, but other factors, including your credit score, may still come into play. Compared to Best Egg's three- to five-year payback terms, Discover provides a wider range of payback terms of three to seven years.
However, bear in mind that a longer payback period has drawbacks. In other words, even if your APR is low, you’ll accrue more interest over a longer repayment period.
With Discover's more accommodating repayment terms, borrowers have greater control over how long it takes to repay their loans.
If you have a low credit score, you might have to abide by the restrictions that your supplier imposes. Your credit score will also have an impact on whether you can benefit from this feature. Additionally, a shorter payback period is suggested if you can afford the higher monthly payments.
Lender | Time to Receive Funds |
|---|---|
Best Egg | Next day |
Discover | Next day |
It can take some lenders up to a few weeks to disburse funding after your application is approved. However, Best Egg and Discover provide cash faster than typical lenders, funding customers the day after they sign a contract for a personal loan.
Considering there is not much of a difference between the two lenders in terms of loan disbursement time, choosing the right lender for you will depend on a number of other factors, such as the APR, repayment terms and the size of your approved loan.
A lender's prompt release of your funds will enable you to use them sooner in case of an emergency. Best Egg and Discover will disburse your loan the next business day following the date you sign your deal. Although receiving your loan quickly is a major selling point, you shouldn't make your choice solely on disbursement time.
Both Best Egg and Discover offer personal loans with short funding times, and both can be regarded as the best options. Each lender has distinctive qualities in terms of APR range, credit score requirement, loan amounts, payback terms and loan disbursement time. However, due to Discover’s lower APR range, it is the best personal loan lender of the two.
MoneyGeek outlines some considerations that may help you to determine whether Best Egg or Discover is the best option for you:
With all these in mind, the personal loan lender that is appropriate for you will depend on your particular demands and financial objectives.
Prior to actually applying for a personal loan, carefully consider your options. MoneyGeek answered frequently asked questions about personal loan lenders to help you choose the one that’s right for you.
Lender requirements for loan applications vary. In general, lenders usually require a completed application form, identification documentation, proof of income and proof of your address.
You can get details about your credit score from TransUnion, Equifax or Experian. This will help you comprehend your score and the factors that contributed to it.
When you submit your application, most lenders will conduct a hard credit pull to check your credit history from one of the major credit agencies.
No, several factors, which vary between lenders, are taken into account when determining your APR or interest rate. This is why it's important to research lenders before filing a loan application.
Yes, even though the fees may vary depending on the lender. Most lenders often impose penalties for early repayment or late payments. If your lender charges additional expenses like origination fees, application fees or returned check fees, you should inquire about them.
You will find that being able to apply for a personal loan online is really convenient. Since you can fill out numerous loan applications from the comfort of your home, there are no longer any lengthy queues or lines to contend with.
Yes, you may settle your entire obligation before the due date. Some lenders, however, might impose a prepayment penalty cost.
About Christopher Boston
Christopher (Croix) Boston was the Head of Loans content at MoneyGeek, with over five years of experience researching higher education, mortgage and personal loans.
Boston has a bachelor's degree from the Seattle Pacific University. They pride themselves in using their skills and experience to create quality content that helps people save and spend efficiently.
The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.
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