Personal loans lender review methodology
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What is the Bankrate Score for personal loans?
Bankrate evaluates personal loan lenders using a 20-point scale that is broken up into four main categories: availability, affordability, customer support and transparency. Each of these categories is crucial to determine how competitive a lender’s offering is and who its products and services cater to.
Score visualization across Bankrate
Bankrate Scores are visualized differently across our website. These images illustrate different variations you may encounter.
- 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
First, our editorial team defines a benchmark of what a competitive loan product looks like. To do this, we conduct a thorough analysis of industry trends while factoring in current market and economic conditions.
Once the benchmark is established, we collect lender-specific data pertaining to each of the categories analyzed within the Bankrate Score. Lenders are then rated from one to five — the latter being the highest.
Although Bankrate receives compensation from some of the lenders we review, partnerships do not influence our decisions. Lender scores are based on hard data and expert analysis to provide transparent ratings.
Overall score
Bankrate vets personal loan lenders in four categories, and each carries a different weight based on consumer impact.
Availability score
This portion of our scoring model is designed to determine a lender’s ability to serve a wide range of consumer credit profiles and needs. These factors also allow us to identify who a lender's products may be best suited for.
Our availability score favors lenders that offer flexible loan amounts, fast approval and funding timelines and those that have more inclusive credit and income requirements.
| Breakdown | |
|---|---|
| Minimum loan amount | 29% |
| Approval timeline | 29% |
| Funding timeline | 29% |
| Minimum income requirement | 12% |
Percentages do not add up to 100 due to rounding.
- Minimum credit score requirement of 640 and under
- Co-borrower or co-signer option
- Wide range of repayment terms
- Maximum loan amount of $100,000 or higher
Affordability score
Affordability factors help us determine how competitive a lender’s products are within the market. We consider more than just the interest rate range to give a full picture of what borrowers can expect to pay overall. Lenders that offer competitive rates and those that charge fewer fees receive higher scores.
| Breakdown | |
|---|---|
| Minimum APR | 25% |
| Maximum APR | 25% |
| Fees (origination, late payment, prepayment, etc.) | 50% |
- Flexible repayment dates or late payment grace periods
- Exclusive rewards and interest rate discounts
Customer experience score
The customer experience score measures the simplicity of the borrowing process and the lender’s ability to quickly and effectively respond to borrowers. Lenders that score higher in this category offer a streamlined application process and comprehensive online account management tools. We also favor lenders that offer customer support through a variety of channels with representatives available during a wide range of hours.
| Breakdown | |
|---|---|
| Application process (online, in-person or hybrid) | 33% |
| Online account management | 33% |
| Customer support options and service hours | 33% |
Percentages do not add up to 100 due to rounding.
- Highly rated mobile app
Transparency score
To make an informed decision, borrowers need a clear understanding of whether they might qualify for a lender's advertised products in addition to how much it could cost them. Lenders that make their credit requirements and rate and fee information accessible to borrowers score the highest.
| Breakdown | |
|---|---|
| Credit requirements listed | 50% |
| Rates and fees listed | 50% |
- Prequalification available with no hard credit check