In each article, Credible will identify if the lender is a partner lender. If the lender is described as a partner or partner lender, Credible receives compensation from the lender. Compensation will not impact how or where products appear on the Credible platform when requesting prequalified rates and loans. Not all lenders participate in the Credible marketplace. Any opinions, analyses, reviews, or recommendations expressed in these articles are those of Credible (and the author) alone and have not been reviewed, approved, or otherwise endorsed by any lender or other provider.
Personal Loans Lender Rating Methodology
Our primary mission at Credible is to give you the tools and power you need to make confident financial decisions. Although we may receive compensation from partner lenders, all opinions are our own, our reviews and articles are written objectively, and our ratings are grounded in rigorous, data-driven research.
Credible’s process in rating personal loan lenders for the benefit of the borrower
We collected 1,184 data points on 32 lenders to determine which are the best overall, and which are the best for specific uses and needs, such as personal loans for debt consolidation and personal loans for bad credit and fair credit. Here’s how:
- Establish lenders: Credible editors research which lenders to evaluate based on lender size, online search traffic and rankings, lender type (bank, credit union, online lender), and whether lenders are Credible partners. Our editors are experts in the personal loan field.
- Determine criteria: Editors then determine which criteria to evaluate across lenders. Criteria include key loan terms, such as APRs, repayment periods, eligibility requirements, and loan types, plus loan features like whether cosigners are allowed and available discounts.
- Collect and verify data: Editors and editorial staff collect lender data from lender sites, lender representatives, and internal intake forms from Credible partners. Data is verified to ensure that it's accurate and current.
- Clean and score data: Once data collection and verification are complete, the data is cleaned and evaluated numerically. Scores are assigned for individual criteria based on how that lender compares in that category to its competitors. For example, a personal loan lender that offers repayment terms up to 10 years would compare favorably with a similar lender with a maximum repayment term of only 5 years.
- Assign weights: Once individual criteria are scored, they are each weighted by editors according to their importance for each user set. For example, a list of the best lenders for bad credit would heavily weight the minimum credit score that each lender requires, while a list of the best lenders for excellent credit would not.
- Determine star ratings: Once the scores for each set of criteria are weighted appropriately, each lender’s weighted scores are summed to arrive at an overall star rating, on a scale of 0 to 5.
- Establish superlatives: Overall star ratings and individual criteria scores are evaluated across lenders to determine the best lenders by category, such as “best debt consolidation loans for fair credit.”
Below are the weightings assigned to each general category for the best personal loan lenders — which is made up of individual criteria (that are individually weighted) in that category.
22.5% — Borrower costOrigination fee ranges and minimum and maximum APRs
We compared each lender’s minimum and maximum annual percentage rate (APR) and the range of origination fees charged, if any. APR accounts for both the interest rate charged plus upfront fees. Lenders with the lowest available APRs and zero or low origination fees scored the highest in this category.
Why it matters
The lower the APR and origination fees, the less you’ll pay to borrow money. It’s important to compare minimum APRs between lenders if you have good or excellent credit. If you have poor or fair credit, it’s important to consider the lender’s maximum APR.
22.5% — FlexibilityOptions for loan amounts, loan purposes, repayment terms, and types of loans
We considered maximum repayment terms, number of loan purposes, minimum and maximum loan amounts, and availability of joint loans and secured loans. Lenders offering extended repayment terms, a broad range of loan amounts, and loans for a wide variety of purposes scored highest in this category. Lenders offering joint loans or secured or joint loans, which are less common among personal loan lenders, also benefited.
Why it matters
Flexibility in loan amounts, repayment terms, and loan purposes gives borrowers more options for choosing a loan that fits their needs. For example, a lender that offers loans only for debt consolidation or credit card refinancing isn't the ideal choice for a homeowner looking to pay for the installation of a new deck.
22.5% — Eligibility and availabilityMinimum income requirements, funding speed, minimum credit score requirements, and state availability
We considered each lender's minimum income and minimum credit score requirements, its fastest funding speed, and the number of states where its loans are available. Lenders offering personal loans to a broad range of credit profiles and borrower incomes nationwide scored highest in this category.
Why it matters
The ability to access personal loans easily and quickly without facing insurmountable barriers to entry is a reasonable expectation for borrowers. Widespread state availability is also important in this respect, especially in areas where borrowers have limited local options.
15% — ReputationCustomer reviews and independent, third-party ratings
We considered each lender's ratings from Trustpilot, the Better Business Bureau, and (where applicable) the annual U.S. Consumer Lending Satisfaction Study by JD Power. This scoring category combines, on a relative scale, customer reviews with JD Power's scientific survey of thousands of personal loan customers.
Why it matters
How well consumers rank a business and how well it responds to customer complaints can indicate how easy or difficult the lender is to work with. It can also highlight potential red flags.
12.5% — Discounts, customer service, and digital managementDiscounts, customer support options, and mobile apps
We considered the availability of options such as automatic payments and direct payments to creditors, and whether they come with discounts. We also considered whether the lender offers a mobile app and live customer support via online chat.
Why it matters
Why it matters: Convenient, money-saving perks, digital loan management tools, and easy access to customer support help ensure borrowers have a seamless customer experience.
5% — Partner lender dataClosed loans data from the Credible personal loan marketplace
We considered proprietary data from Credible lending partners, including average interest rates, loan amounts, funding time, and eligibility criteria.
Why it matters
Analysis of closed loans data measures how well borrowers fared in real-world situations with Credible's partner lenders. It provides objective benchmarks for affordability, accessibility, and flexibility.
Read more about Credible’s mission and promise to our readers.