American Express Personal Loans Review

Pros Explained

• Excellent customer satisfaction: American Express received top customer satisfaction ratings in recent surveys by J.D. Power, including being ranked as the top national credit card issuer in 2021 and 2022. In the 2022 U.S. Consumer Lending Satisfaction Study, American Express ranked third out of 22 personal loan lenders and scored far better than the average. You must be an eligible cardholder to get a personal loan from American Express, making the credit card ratings especially relevant.
• No origination fees: You won’t have to pay an origination fee for an American Express personal loan, which could save you money that competitors may charge you.
• Funds can be used to consolidate debt: You can use your loan funds for various purposes, including consolidating debt as long as it's not debt from American Express credit cards.

Cons Explained

• Only offered to eligible cardholders: You can only get an American Express personal loan if you’re an eligible cardholder who has received a pre-approval offer. These loans are unavailable to cardholders who haven’t received an offer and non-cardholders.
• Qualifications not disclosed: American Express uses a pre-approval process to identify cardholders eligible for a personal loan. If you decide to apply for a loan, the company will review your financial condition and creditworthiness to confirm that you qualify for the loan. Unfortunately, the specific qualifications it uses in these evaluations (e.g., minimum credit scores or income thresholds) are not disclosed.

Introduction

American Express is an established global credit card issuer that also offers personal loans to eligible cardholders. While American Express doesn't advertise APR ranges, its rates are rumored to be competitive. Loan amounts start at $3,500 and go up to $40,000, which may be a little lower than some competitors. Plus J.D. Power ranked it third out of 22 personal loan providers in its 2022 U.S. Consumer Lending Satisfaction Study.

Personal loans from American Express are an excellent option for individuals who need funding to cover a variety of personal, family, or household expenses, such as paying for a wedding, covering unexpected medical expenses, or making minor home improvements. They’re also an excellent option if you want to consolidate non-American Express credit cards or other debt into a single fixed-rate loan. American Express does not advertise the options for loan terms, but says you'll have multiple choices when answering a loan offer.

Company Overview

American Express was founded in 1850 and is headquartered in New York City. The company is one of the largest global payment companies, offering a variety of credit cards and financial products. Personal loans of up to $40,000 are available to eligible American Express cardholders. These loans can be used to cover a wide variety of expenses, including debt consolidation, medical expenses, weddings, vehicle down payments, and more. 

You can not use the proceeds from your personal loan to pay down the balances on an existing American Express card, nor can the loan be used for business purposes, post-secondary education expenses, purchasing securities, real estate, or vehicle purchases (other than the down payment for a vehicle). 

Types of Personal Loans Offered by American Express

American Express offers an unsecured personal loan that can be used for several purposes. Some of the eligible uses of American Express personal loans include: 

• Existing credit card debt consolidation (except American Express cards)
• Home renovations
• Other significant purchases

You can’t use a personal loan from American Express for business purposes, to buy a vehicle (besides making a down payment), purchase real estate, pay for post-secondary education expenses, or buy securities. You also can’t use the proceeds from your personal loan to pay off or refinance an existing American Express credit card.

Only eligible American Express cardholders are eligible for this personal loan. To qualify, you need to have an acceptable level of creditworthiness. While specific criteria aren’t disclosed, in general, this means you have sufficient income to repay your loans and a good credit history. 

You can apply for a personal loan if you receive a pre-approval from American Express, which has no impact on your credit score. However, if you later accept the loan and are approved your credit score may be impacted by a hard inquiry. Simply log into your American Express cardmember account and check for offers to see if you’re pre-approved.

Time to Receive Funds

It can take three to five business days to receive funds from a personal loan with American Express after you sign your loan agreement. The funds will be electronically deposited to your bank account, typically through an ACH transfer.

If you don’t have a bank account on record with American Express or want the funds deposited to a different bank account, you’ll first need to verify your bank account, which can take a couple of days. After that, it can take three to five days to deposit funds. This timeline is typical for the industry, though certain lenders may disburse funds more quickly.

American Express Personal Loan Features

One of the key features of an American Express personal loan is that you can use the proceeds to consolidate debt. Plus, you won’t pay any origination fees, something that’s often charged by other providers.

Debt Consolidation

When you’re approved for an American Express personal loan, you can use the loan proceeds to consolidate credit cards or other debt into a single monthly payment. You'll of course need to meet the loan minimum of $3,500. Restrictions may apply to have funds sent directly to creditors, but you can always pay them yourself.

Keep in mind that you can’t use the loan proceeds to pay off an American Express card.

No Origination Fees

Unlike many other personal loan providers, American Express doesn’t charge any origination fees on its personal loan. This is part of the reason why the APR charged by American Express is rumored to be very competitive.

Apply for an American Express Loan

To apply for a personal loan with American Express, you’ll need to:

1. Login to your account online to see if you’re pre-approved. Personal loans from American Express are only available to eligible cardholders. So, the first step is to log into your American Express cardmember account to see if you’re pre-approved for a personal loan. If you’re pre-approved, you’ll be able to see how much you can potentially borrow — potentially up to $40,000 — and an estimate of the interest rate you’ll pay.
2. Apply online. You’ll complete a quick application online. Besides providing basic personal information—including the loan’s purpose and your total income—you’ll select how much you want to borrow (up to the pre-approved amount), the loan term you desire, and where you want the funds sent. It usually takes seconds after applying to see if you’re approved.
3. Review the loan terms, accept the offer, and sign the loan documents. Once your loan is approved, you’ll receive an offer and will need to review the loan terms. If the terms work for you, you’ll then accept the offer and digitally sign the loan documents. You have three days to complete this process, or the offer will be withdrawn, and you'll need to reapply. You’ll need to wait at least 60 days from when your loan agreement was signed to apply for another American Express personal loan if you've already accepted a loan offer.
4. Receive your loan funds. Your loan funds will generally be sent to the bank account or credit card accounts specified in your application within three to five business days of signing the loan documents. If American Express hasn’t previously verified the bank account, the company will need to do so before transferring your funds. Take care when entering this information, as your loan will be canceled if your account can’t be verified.

Can I Refinance a Personal Loan with American Express?

You can’t refinance a personal loan with American Express. You also can’t change the due date for your payment, which will be set when you are approved for your personal loan. However, you can repay your personal loan early without being charged a prepayment penalty.

Customer Service

American Express has created a comprehensive help center that you can reference if you have questions. If you can’t get your question answered with this resource, you can also chat with a customer service agent by logging into your account or speak with a customer service agent by calling 1-800-528-4800 24 hours a day, 7 days a week.

Customer Satisfaction

American Express was ranked third for personal loans out of 22 lenders in J.D. Power's 2022 U.S. Consumer Lending Satisfaction Study. The company achieved a score of 754 which was much higher than the average of 730.

Notably, American Express was also ranked first among national card issuers in the J.D. Power U.S. Credit Card Satisfaction Study in 2021 and 2022. American Express personal loans are only offered to cardholders, making these customer satisfaction findings related to credit card issues relevant as well.

Account Management

You’ll manage the entire personal loan process by logging into your American Express account online. This begins by logging into your account to see if you have a personal loan offer and continues through the entire application and account management process. You’ll generally find out if you’re approved for a personal loan within seconds of submitting your application. 

If you have questions that aren’t answered after reviewing your online account, you can chat with a customer service agent from your dashboard or reach a representative by phone 24/7.

How American Express Compares to Other Personal Loan Companies

While the personal loan offered by American Express is only available to eligible cardholders, you can get an American Express personal loan in all 50 states. The footprint for many other lenders is restricted in some states. 

However, a $40,000 limit might not be enough for everyone's needs. While not advertised, American Express's personal loan interest rates are believed to be quite competitive. Additionally, as we've already seen, customers are very satisfied with the company, more so than they tend to be with competitors.

American Express vs. Discover

One of the biggest competitors to American Express is Discover, which also offers unsecured personal loans and a simple online application. While American Express finished third in J.D. Power's U.S. Consumer Lending Satisfaction Study, Discover finished fifth. Discover's score was strong, but consumers seem to prefer American Express a little bit more. Plus, neither company charges an origination fee.

Some of the key differences between personal loans with American Express vs. Discover are as follows:

• You can only apply for an American Express personal loan if you’re a cardholder who’s received a pre-approval offer. In contrast, U.S. citizens 18 years and older who have at least $25,000 income can apply for a Discover personal loan.
• Discover advertises its APR range as 6.99% to 24.99% (as of May 1, 2023), while American Express doesn't publicize its rates.
• Repayment terms for Discover personal loans are up to 84 months. American Express doesn't advertise its loan term options.

Both American Express to Discover are excellent lending options. If you’re an American Express cardholder invited to apply, it will probably be an easier and more convenient option to stay with one company. If you're not an American Express cardmember, or haven't received an offer, Discover could be a good choice.

Read our full Discover personal loans review.

Final Verdict

The biggest drawback to an American Express personal loan is that you can only get it if you are an eligible cardholder who has received a pre-approval offer. However, if you’ve received a pre-approval offer, then a personal loan from American Express is a great option as long as you need $40,000 at most. Plus, its APRs are believed to compare favorably with the competition, and the company has an excellent reputation.

Methodology

Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of personal loan lenders. To rate providers, we collected over 25 data points across more than 50 lenders, including interest rates, fees, loan amounts, and repayment terms to ensure that our reviews help users make informed decisions for their borrowing needs.  

Our full personal loans methodology, including our data collection process and weighted data points, is available for review.

Frequently Asked Questions

Is It Easy To Get a Personal Loan From American Express?

You have to be invited to apply for a personal loan from American Express, so it's not as easy as it is with other lenders. American Express personal loans are only available to eligible cardholders who receive a pre-approved offer.

How Long Does It Take To Get Approved for an American Express Personal Loan?

Because American Express personal loans are only offered to pre-approved cardholders, getting approved is fast. You could be approved just moments after you submit your application.

What Can I Use an American Express Personal Loan For?

American Express restricts the use of personal loan funds. You may use the loan proceeds to consolidate credit card debt, pay for big expenses, or make home renovations. You cannot use the loan to consolidate debt from American Express credit cards, pay for college, or buy a home, car, or stocks.

What Credit Score Do I Need for an American Express Personal Loan?

American Express doesn't disclose the credit score required to get its personal loan or publish its rates or loan terms.