Personal Loans Lender Rating Methodology
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Credible’s process in rating personal loan lenders for the benefit of the borrower
We collected 1,216 points of data 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: Senior 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 senior editors are experts in the personal loan field.
- Determine criteria: Senior 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: Senior editors and editorial staff collect lender data from lender sites, lender representatives, and internal intake forms from Credible partners. Data is verified by a third party against its source to ensure that data is accurate, and the source is reliable 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 who offers repayment terms up to 10 years would compare favorably to a similar lender that only offers a 5-year repayment term.
- Assign weights: Once individual criteria are scored, they are each weighted by senior 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.
18.75% - Rates and feesDefinition: The APR range available from each lender
We compared each lender’s annual percentage rate (APR) range, which accounts for the interest rate charged plus upfront fees, like origination fees. The lenders with the lowest available APRs scored the highest in this category. However, lender scores suffered if the maximum APR was relatively higher than that of competitors.
Why it matters
The lower the APR, 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.
17.5% - Eligibility / options for poor and fair creditDefinition: Eligibility criteria and the availability of joint loans and secured loans
We considered minimum income, minimum credit score, and membership requirements, along with the availability of joint loans and secured loans. Lenders with low minimum income and minimum credit score requirements that offer secured and joint loans scored highest in this category.
Why it matters
Your own criteria, such as credit score, income, and whether you're applying for a secured loan and/or with a joint applicant, dictate which loans you’re eligible for. Understanding lender eligibility requirements can help you narrow down which loans you should apply for.
12.5% - AvailabilityDefinition: State availability and loan use
We considered state availability along with what purposes you can use loans for (e.g., home improvement, debt consolidation, major purchase, etc.). Lenders offering personal loans in all 50 states for a wide variety of loan purposes scored highest in this category.
Why it matters
If a lender doesn't offer loans in your state or won't let you use loan funds for your intended purpose, that lender is not an option for you.
10% - Customer serviceDefinition: Access to live agents
We considered features like whether live chat is available on the lender’s site and whether it offers a mobile app.
Why it matters
Generous access to customer service agents makes it easier to ask questions about your existing loan or a potential loan, which can help you make better choices when shopping loans and managing one.
10% - Loan amounts and loan termsDefinition: Repayment periods and loan amounts
We compared the maximum repayment period and the number of repayment periods available from each lender, as well as the maximum and minimum loan amounts available. The lenders with the longest available repayment periods tended to score highest in this category. The lenders with the largest available loan amounts also did well. Lender scores were dinged if their minimum loan amounts were relatively high.
Why it matters
A loan’s repayment period affects your monthly payment, your APR, and how much you’ll pay in interest over the life of the loan. A longer repayment period can make a personal loan more affordable on a monthly basis. Lenders that offer a wide range of loan amounts are suitable for a wider range of borrowers.
10% - Customer satisfactionDefinition: Third-party reviews
Better Business Bureau (BBB) letter ratings, average Trustpilot customer review scores, and J.D. Power rankings (where available) were considered for each lender on a relative scale.
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 along with potential red flags.
10% - Efficiency and fund deliveryDefinition: How quickly loans fund / how easy it is to get a loan
We considered minimum loan funding times, how likely loans were to close once prequalified, and whether the lender offers prequalification on its website. Quick funding times, the options to prequalify, and a high correlation between prequalification and loan approvals resulted in high scores in this category.
Why it matters
Elements like prequalification and quick funding make it easier (and quicker) to get a loan. Speed doesn't necessarily correlate with the best overall lenders, but it is a nice feature, especially for emergency expenses.
7.5% - DiscountsDefinition: Autopay and direct pay discounts
Whether lenders offer autopay and direct pay discounts was considered, as was the size of the discount. Lenders that offer the largest discounts for automatic monthly payments and for payments made directly to creditors on debt consolidation loans scored the highest in this category. Lenders that don’t offer discounts scored the lowest.
Why it matters
Loans can be expensive. While a loan with a low APR is the best way to save money on interest, discounts can help.
3.75% - Credible proprietary dataDefinition: Closed loans data from the Credible personal loan marketplace
We considered proprietary Credible personal loans data based on thousands of loans closed over a 12 month period across 16 lenders, from May 2024 through April 2025.
Why it matters
Lenders advertise their lowest rates, highest loan amounts, and quickest funding times. Looking back at a year's worth of real loans to real borrowers, we were able to see which lenders best delivered on those promises. We also considered average interest rates and loans amounts that borrowers were approved for according to a range of criteria, including credit score tiers (bad, fair, good, very good, and excellent).
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