Personal loans lender review methodology
The Bankrate promise
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Personal loans are installment loans that can be used for almost any purpose. These are offered by banks, credit unions, peer-to-peer lenders and online lenders. Because lenders are as varied as the ways you can use a personal loan, choosing the right lender can sometimes feel like a tall order.
To help borrowers narrow down their choices, the Bankrate team has crafted a meticulous methodology that allows us to determine which lenders have the best loan offers in the market.
How does Bankrate evaluate personal loan lenders?
To evaluate lenders, our editorial team uses a 20-point scale known as the Bankrate Score. This scoring model takes into account four key factors: availability, affordability, customer experience and transparency.
How does Bankrate assign lender stars?
Once our team of experts finishes collecting information regarding the four main factors in our scoring model, lenders are then rated with a score from one to five — the latter being the highest. For instance, the lower the APR range, the higher that lender will score, whereas, the higher the APR range, the lower it will rank.
Although Bankrate does receive compensation from some of the lenders we review, partnerships do not influence our opinion. Lender scores are solely based on hard data and expert analysis. Our goal is to provide transparent ratings so you can find the right lender for your needs.
Here’s a closer look at the Bankrate personal loan methodology and each of the data points our team evaluates as part of the process.
Availability
- Minimum and maximum loan amounts.
- Approval and funding times.
- Number of repayment terms offered.
- Flexibility to apply with a coborrower or cosigner.
- Minimum income and credit score requirements.
Why we consider this
Affordability
- APR ranges.
- Loan fees.
- Prepayment penalties.
- Flexible repayment dates or grace periods.
- Exclusive rewards and discounts.
Why we consider this
Customer Experience
- Application process.
- Online account management and features.
- Mobile app availability.
- Customer support options and service hours.
Why we consider this
Transparency
- Advertised credit requirements, interest rates and fees.
- Prequalification.