Credit-builder Lender Methodology
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What is the Bankrate score for credit-builder loans?
For credit-builder loans, Bankrate evaluates lenders using a 14-point scoring model that measures three key aspects: availability, affordability and customer support. Each of these aspects play an essential role in helping our editorial team assess how a lender’s products and services stack up against current market offers and the clientele they cater to.
Score visualization across Bankrate
Bankrate scores may look different across our website. These images illustrate the different variations.
- 4 - 5 stars is exceptional
- 3 - 4 stars is above average
- 2 - 3 stars is average
- 0 - 2 stars is below average
How we calculate a Bankrate score
The Bankrate team begins the scoring process by conducting a thorough analysis of industry trends and economic and market conditions influencing that particular space. These findings allow our team to develop a baseline to rate credit-builder loan products properly.
Once the baseline is established, our team collects lender-specific data pertaining to each factor considered within the Bankrate score. Lenders are then rated with a score from one to five — the latter being the highest.
Though Bankrate may have partnerships with some of the lenders featured, that doesn’t influence our decisions. Scores are determined based on hard data and expert analysis.
Overall score
Bankrate evaluates credit-builder loan lenders in three categories. Weight is assigned based on consumer impact.
Percentages do not add up to 100 due to rounding.
Availability score
The availability score allows us to determine who the lender’s products cater to and their best uses. Bankrate favors lenders who offer a range of loan amounts and repayment terms. Lenders that offer early access to funds and nationwide servicing also score higher in this category.
| Breakdown | |
|---|---|
| Minimum loan amount | 25% |
| Maximum loan amount | 25% |
| Repayment terms | 15% |
| Fund accessibility | 15% |
| States serviced | 20% |
- Allowing concurrent loans.
Affordability score
Affordability factors allow us to measure how competitive a lender’s products are when compared to those offered by its competitors. Lenders with the most competitive rates and those who charge fewer fees score the highest.
| Breakdown | |
|---|---|
| Minimum APR | 25% |
| Maximum APR | 25% |
| Minimum monthly payment | 20% |
| Fees (account setup, late payment, early account closing, etc.) | 30% |
Customer experience score
Lenders offering a range of contact options, support hours and a flexible cancellation policy rate higher in this category. A well-established reputation and proven excellent service through consumer feedback are also favored here.
| Breakdown | |
|---|---|
| Customer support options and service hours | 30% |
| Cancellation policy | 35% |
| Industry reputation | 35% |
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