Best Egg processes loan payments through ACH transfers from your bank account on a fixed schedule you choose during setup

When you take out a Best Egg personal loan, the company sets up automatic payments from your checking or savings account using the ACH (Automated Clearing House) network. You choose your payment date during the loan process — typically any day between the 1st and the 28th of each month. Best Egg withdraws the full payment amount on that date each month until the loan is paid off. The payment includes both principal (the amount you borrowed) and interest (what Best Egg charges for lending to you).

The ACH transfer usually takes one to two business days to process. Best Egg deducts the money from your account, sends it through the ACH network, and the funds settle in Best Egg's account. You can see the pending withdrawal in your bank account before it clears, which gives you a window to catch any problems — though by that point the withdrawal is already scheduled.

Best Egg does not offer payment by check, wire transfer, credit card, or manual bank transfer. ACH is the only method. If you want to change your payment date or bank account, you can do that through your Best Egg online account or by calling customer service, but the change typically takes effect on your next scheduled payment cycle.

Key Takeaways

  • Best Egg uses automatic ACH withdrawals only — you cannot pay by check, wire, credit card, or manual transfer.
  • You choose your payment date (1st through 28th) when you set up the loan, and that date stays the same every month.
  • The ACH transfer takes one to two business days to clear, so the money leaves your account a day or two before Best Egg receives it.
  • Each payment covers both principal and interest; the interest portion decreases over time as your balance shrinks.
  • You can change your payment date or bank account through your online account, but the change applies to the next payment cycle, not the current one.

How the payment amount breaks down each month

Your monthly payment stays the same throughout the life of the loan — this is called an amortizing loan. However, the breakdown of that payment changes every month. Early in the loan, most of your payment goes toward interest. As you pay down the principal, more of each payment goes toward reducing what you owe.

Best Egg provides an amortization schedule when you close the loan. This document shows exactly how much of each payment is principal and how much is interest for every month of the loan. You can also view this schedule in your online account. If you make extra payments or pay off the loan early, Best Egg applies the extra amount directly to principal, which shortens the loan term and reduces the total interest you pay.

The interest rate you receive depends on your credit score, income, and debt-to-income ratio at the time you explore. Best Egg does not adjust your rate after you close the loan — it stays fixed for the entire term, whether you chose a 3-year, 5-year, or 7-year repayment period.

What happens if your payment fails or bounces

If the ACH withdrawal fails because your account does not have enough funds, Best Egg will attempt to withdraw the payment again. The company typically makes one or two retry attempts over the next few days. If all attempts fail, Best Egg marks your account as late and may charge a late fee — usually between $15 and $25, depending on your loan agreement.

A failed payment also triggers a report to the credit bureaus. Even one missed payment can lower your credit score by 50 to 100 points. Best Egg reports the payment as late if it arrives more than 15 days after the due date, though the damage to your credit begins as soon as the payment is missed.

If you know your account will not have funds on your payment date, contact Best Egg before the withdrawal is scheduled. The company may allow you to defer a payment or adjust your payment date for that month. Asking ahead is far better than letting the payment fail, because a deferment does not trigger a late report to the credit bureaus, while a failed payment does.

Early payoff and prepayment rules

Best Egg does not charge a prepayment penalty. You can pay off your loan in full at any time without owing extra fees. Any amount you pay above your regular monthly payment goes directly toward principal and reduces the total interest you will pay over the life of the loan.

You can make extra payments through your online account or by contacting customer service. Some borrowers make one extra payment per year, while others pay extra whenever they have surplus cash. The more you pay toward principal, the faster the loan closes and the less interest accrues.

If you want to pay off the loan entirely, Best Egg can provide a payoff quote that shows the exact amount needed to close the account on a specific date. This quote accounts for interest that will accrue between now and your payoff date, so the amount is precise. You can request this quote through your online account or by phone.

Automatic payment setup and changes

During the loan process, Best Egg asks you to link a checking or savings account and choose your payment date. The company verifies the account by depositing two small amounts (usually under $1 each) and asking you to confirm those amounts. This verification takes one to two business days. Once verified, your account is set up for automatic payments, and the first payment is withdrawn on your chosen date.

If you need to change your payment date, log into your Best Egg account and select the option to update your payment schedule. The change takes effect on your next payment cycle — it does not affect a payment that is already scheduled. If you want to change the bank account that Best Egg withdraws from, you can add a new account and remove the old one through the same online portal.

If you close the bank account that Best Egg is set to withdraw from, contact the company when ready. Best Egg will attempt to withdraw from the closed account, which will fail and trigger a late fee and credit report. Updating your account information before the payment date prevents this problem.

How Best Egg reports payments to credit bureaus

Best Egg reports your payment history to Equifax, Experian, and TransUnion — the three major credit bureaus. The company reports once per month, usually around the same time each month. On-time payments are reported as positive activity and help build your credit score over time. Late payments, missed payments, and defaults are reported as negative activity and damage your score.

Best Egg reports the payment status as of your payment date, not when the money actually clears your bank account. If your payment is scheduled for the 15th and you make it on the 15th, it reports as on-time even if the ACH transfer does not clear until the 17th. However, if the payment is scheduled for the 15th and you do not make it until the 20th, it reports as late.

You can view your payment history and credit reporting status in your Best Egg online account. The account shows which payments have been reported to the bureaus and when. This information is useful if you are monitoring your credit score or disputing an error on your credit report.

Frequently Asked Questions

Can I change my payment date if I get paid on a different day of the month?

Yes. You can change your payment date through your online account to match your payday, which makes it easier to may support funds are available. The change takes effect on your next scheduled payment, so plan ahead if you need the change to happen by a specific date.

What happens if I pay off my Best Egg loan early?

Best Egg does not charge a prepayment penalty, so you can pay off the loan at any time without extra fees. Any amount you pay above your monthly payment goes toward principal and reduces the total interest you owe. You can request a payoff quote through your account to see the exact amount needed to close the loan on a specific date.

Does Best Egg accept payment by credit card or check?

No. Best Egg only accepts payments through automatic ACH withdrawals from a bank account. You cannot pay by credit card, check, wire transfer, or any other method. The ACH setup is required before your loan funds are disbursed.

How long does an ACH payment take to clear?

ACH transfers typically take one to two business days to process. The money leaves your bank account on or shortly after your payment date and arrives in Best Egg's account one to two days later. Weekends and holidays can extend the timeline.

What should I do if my payment fails due to insufficient funds?

Contact Best Egg when ready before the retry attempts are exhausted. The company may defer your payment or adjust your payment date, which prevents a late report to the credit bureaus. If the payment fails and is not resolved, it will be reported as late and may lower your credit score.