Best Egg
Best Egg is a relatively new non-traditional debt consolidation company. The company offers a personal/consolidation loan rather than a consolidation service.
Best Egg is one of several relatively new lending companies to emerge on the scene. They offer personal loans that can be used to consolidate high-interest credit card debt. Although the company isn’t a traditional debt consolidation company, it does offer users the ability to combine multiple payments into one monthly payment, even if the interest rate is less attractive than many competitors.
The Good
- Easy application process
- Fast loan funding
- Multiple loån types
Easy Online Application
The online application process appears to be quick and easy. You first enter some personal information to set up your account, which is guaranteed to be kept secure by Best Egg. Then you select the loan that you need. From there you can look at the details and confirm your application. Approvals are generally completed within two business days. If you are struggling with debt, personal/consolidation loans could be an option to consider.
The Bad
- High interest rates
- Less than five years in the industry
- Customer complaints
High Rates
Best Egg is not a debt consolidation company, and it shows. The fees charged and interest rates offered are significantly higher than most debt consolidation companies.Their fees are typically 1 to 5 percent of the loan amount. On top of that, interest rates can be as high as 29.99 percent. This should cause caution in someone looking to get out of debt.
New to the Game
The company only has four years in business, and also has no certified debt counselors on staff, no industry credentials, no money back guarantee, and isn’t ISO certified. Without the ISO certification – there is no guarantee that any sort of independent auditing is taking place. These are all major drawbacks to working with Best Egg.
Customer Complaints
Customer complaints about Best Egg revolve around the high-interest rates being offered on the loans. There are multiple reports of customers who considered using Best Egg to consolidate their credit card debt only to find themselves being offered a loan at a higher interest rate than they got on their credit cards. In these cases, using Best Egg would leave customers worse off than they were when they started.
The Bottom Line
Overall, if you or someone you know has a relatively good credit score but has fallen into credit card debt, Best Egg could be an option to lower your monthly payment and get you out of debt faster (three to five years depending on the loan option selected). While this can be a good option for some, the bottom line is that using a personal loan to consolidate debt is often more expensive and less successful than working with a reputable, established debt consolidation company to set up a debt management plan. We do not recommend Best Egg for debt consolidation at this time.
About Best Egg
As one of the newest debt consolidation companies, Best Egg is an online personal loan provider that strives to provide the low interest rates and fees. Best Egg does not offer debt consolidation programs. Instead, Best egg provides personal loans to allow customers to consolidate their different debts into one monthly loan payment. In most scenarios, the interest rate on the consolidation loan will be lower than the customer’s previous debt. Best Egg does not offer any other free financial resources.
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User Score06 people found this review helpful!Company is a joke. My FICO score is 820 I have two credit cards with rate of 5.99% each. Thought I would consolidate with Best Egg but their ridiculous percent rate was quoted at 10.99%. Maybe I can lend them money at a lower rate they offer to the public!Was this review helpful? YesRead More
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- Takes your existing debt and try to settle with your creditors for a lower amount. If you pay off the settled amount, your debt will be considered paid in full.
- Negotiates with your creditors on your behalf.
- Fee based on a percentage of your total starting debt or a percentage of the debt they save you.
- Most settlement companies have you create a separate "escrow" account where you will make monthly contributions over a certain amount of time to contribute to your settlement. Once there is a substantial amount of funds to show your creditors, the settlement company will try to negotiate a lower amount of debt.
- Combines all your debts and creditors into one monthly payment.
- Allows you to pay one monthly payment to the consolidation company, instead of multiple payments to different creditors.
- You no longer owe your original creditors; instead you pay one monthly payment to your consolidation company.
- Consolidation companies can help negotiate lower interest rates on your debts and help lower your total debt payment in the long run. A lower interest rate will lower the amount you owe in the end.
- Allows you to consolidate all your different debts into one personal loan that can be paid off over time.
- Can offer borrowers a lower interest rate with a longer payback term (compared to high-interest credit cards or medical bills). This will lower the amount of money required to pay off the loan over time.
- Personal loan debt consolidation can be an effective way to raise your credit score quickly (within 3-6 months).
- Borrowers can receive funds from their loan within only a few days.
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