American Express vs. Wells Fargo: Which offers better personal loans?
If you’re looking for a personal loan, both American Express and Wells Fargo are well-established options. American Express has been providing financial products to customers since 1850, and Wells Fargo started in 1852 to help customers manage their money well.
In terms of personal loans, American Express is the best option for low APRs while Wells Fargo offers larger loan amounts.
American Express vs. Wells Fargo at a glance
Wells Fargo and American Express both offer personal loans, but they differ in APRs, loan term lengths and loan amounts.
| American Express | Wells Fargo | |
|---|---|---|
| Bankrate Score | 4.4 | 4.4 |
| Better for | Lowest APR | Large loan amounts |
| Loan amounts | $3,500–$40,000 | $3,000–$100,000 |
| APRs | 6.90%-19.97% | 7.49%-24.99% |
| Loan term lengths | 12–60 months | 12–84 months |
| Fees | Late payment fee | Late payment fee |
| Minimum credit score | Not Specified | Not Specified |
| Time to funding | Typically 3-5 business days | Typically 1-3 business days |
American Express personal loans
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American Express provides personal loans for American Express cardholders. Its loans come with a competitive starting APR but a relatively low range of amounts — capped at $40,000. American Express doesn’t specify a credit score minimum for its personal loans, but you can expect a score between 610 to 640 will be required.
While the American Express personal loan presents a good option for American Express cardholders, it’s quite inconvenient to get a personal loan from it if you don’t already have one of its credit cards. Additionally, personal loans from American Express have a number of restrictions on how you can use the funds, including a ban on purchasing vehicles. Other personal loans give more freedom in how you can use loan funds.
Wells Fargo personal loans
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If you’re looking for a personal loan, you could also consider Wells Fargo. Similar to American Express, Wells Fargo only offers personal loans to current customers, but you can visit a local branch to find out how to become a customer and apply for a personal loan. If you are a current customer, you can apply for a personal loan with Wells Fargo online, by phone or in-person.
Wells Fargo personal loans have a few features that stand out. First of all, it offers loan amounts up to $100,000. Many personal loan lenders have a maximum amount closer to $50,000. Additionally, Wells Fargo offers a special military benefit of loan relief during active service. There is also a rate discount between 0.25 percent and 0.50 percent available to borrowers who set up autopay from a qualifying Wells Fargo account.
How to choose between American Express and Wells Fargo
Both American Express and Wells Fargo offer personal loan options to pre-existing customers. This may limit your eligibility, but if you’re looking to open an account with one over the other, both lenders have different strengths. Choose Wells Fargo for larger loans, but stick with American Express if you want to score the lowest personal loan interest rate.
Choose Wells Fargo for large loan amounts
Wells Fargo wins out against American Express for the highest loan amount. American Express offers loans up to $40,000, while Wells Fargo has loans as large as $100,000. This is higher than American Express and higher than many other lenders offer. If you are looking for a large personal loan, Wells Fargo is the best option.
Choose American Express for most competitive APR
On the flipside, American Express offers the lowest APR between the two lenders. American Express APRs start as low as 6.90 percent. Rates for a Wells Fargo personal loan start at 7.49 percent. If you are looking to save the most money on your loan over time, choose American Express.
Compare lenders before applying
Getting a personal loan costs money. The interest rate, loan fees and repayment terms all add up to create the cost of the loan. Make sure you are getting the best deal by comparing multiple lenders. Look at both traditional lending and online lending options. You may find you can get the best deal with a lender you already bank with.
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