Business Insider's Personal Loan Review Methodology

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate personal loans to write unbiased product reviews.

If you're looking to borrow money to pay for an expense, whether it's a household improvement project or a medical bill, an online loan might be a great option for you. There are many lenders out there, and we provide reviews and guides of them and their loan offerings to help you make the best borrowing decision possible.

To ensure we evaluate each of them equally, we use a rating system that considers a range of factors from interest rates and fees to customer support and ethics. We consider the pros and cons of each company and product, comparing them with others that are available so you can decide which personal loan matches your particular needs.

What we look for when rating personal loans

We rate all personal loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. They are:

Interest rate (20% of rating)
Fees (20% of rating)
Term lengths and loan amounts (15% of rating)
Funding speed (15% of rating)
Borrower accessibility (15% of rating)
Customer support (7.5% of rating)
Ethics (7.5% of rating)

Each category's weighting is based on its importance to your borrowing experience. Rates and fees have the most direct impact on the overall cost of your loan, so we weigh those the most heavily. Customer support and ethics are still very important parts of the borrowing experience, but do not directly tie to a personal loan's terms, so they have less of an impact on the overall rating.

Interest rate (20%)

We look at range of rates a lender offers, from the minimum APR to maximum APR, to determine its rating and to help you find the best personal loan interest rate. We want to serve readers who have both higher credit scores (thus qualifying for a lower rate) and lower credit scores (thus getting a higher rate).

Examples

A lender will receive 5 out of 5 if its minimum APR is one of the lowest on the market (about 5%) and its maximum APR is similarly low (about 20% or less).
If a lender has a higher APR range but still has low rates for borrowers with good credit (about 9%), it will earn 3 out of 5.
Lenders with significantly high minimum rates or have maximum rates that greatly exceed 36% will get 1 out of 5.

Fees (20%)

Lenders might charge a variety of fees, from origination fees to late payment penalties. We prioritize lenders that charge minimal or no fees.

Examples

If a lender charges no fees, it will net a 5 out of 5.
Lenders with a small origination fee and a reasonable late fee will receive 2.5 out of 5.
Lenders will get a 1 out of 5 if they charge hefty origination fees which take a significant portion out of your total loan amount and late fees that stack up if you fall behind on payments.

Term lengths and loan amounts (15% of rating)

We determine if the company has a variety of repayment term lengths, offering options for borrowers who want to pay off their loans quickly and save on interest, as well as those who want to spread their costs over more years.

We also look at both a company's minimum loan amount and its maximum. A smaller minimum makes a company more accessible to borrowers who only need a bit of cash to tide them over. A high maximum enables borrowers who need to fund a more expensive project to do so.

Examples

A lender will earn a 5 out of 5 if it has a loan minimum of at least $1,000 and a maximum of at least $50,000, coupled with term lengths between one to seven years.
Companies with a loan minimum of $2,500 or higher or a loan maximum of $35,000 or lower, or a slightly shorter maximum term length (about five years) get a 3 out of 5.
Lenders will receive a 1 out of 5 if they have extremely tight loan amount ranges or select your term length for you from a limited number of options.

Funding speed (15%)

We assess how quickly a lender will get you your money after you apply and are approved for a loan.

Examples

Lenders that get you your money the same business day will get 5 out of 5.
If you receive your money within three days, the company will earn 3 out of 5.
Lenders will receive a 1 out of 5 if it takes them seven business days or longer to get you your money.

Borrower accessibility (15%)

Lenders may only cater to borrowers in certain states, or with certain credit scores and income levels. We look at how accessible the lender is for borrowers with a range of backgrounds.

Examples

Lenders that are available in all states and have minimal or nonexistent credit requirements will get 5 out of 5.
A company that is available in almost every state or has slightly stricter eligibility requirements will receive a 3 out of 5.
Lenders will get a 1 out of 5 if they aren't available in most states or if they have high barriers to entry for most borrowers.

Customer support (7.5% of rating)

We review the different ways you're able to contact customer support. For instance, we look at if you can contact someone over the phone, by live chat, through email, or regular mail. We also review customer service hours and give high marks for companies that offer around-the-clock service.

Examples

A lender will receive 5 out of 5 if it offers several ways for you to contact it and is open seven days a week for a significant portion of the day.
A lender with customer support available six out of seven days and many ways for you to contact it will earn 3 out of 5.
Lenders will get a 1 out of 5 if they have limited ways for you to contact them and are only available during certain hours of the traditional work week.

Ethics (7.5% of rating)

We look into the company to see if there have been any scandals in the past three years. We research if the company is known for being racist, or sexist toward its customers or staff or has predatory lending practices. We also consider the company's Better Business Bureau rating.

Examples

A lender will receive 5 out of 5 if it has had no scandals in the last three years and has an A+ rating with the Better Business Bureau.
If a company has no scandals and a BBB grade of about B, it will get a 3 out of 5.
Lenders will get a 1 out of 5 if they have been a part of a significant scandal within the past three years or if they have a BBB grade of D or lower.

Our ratings can help you determine which lender is best for you. Personal loan lenders that earn high marks in each category will be our lenders with the highest overall ratings. Still, consider options with lower overall ratings if they are a better fit for your individual situation.

Personal Loans We've Reviewed

Ryan Wangman, CEPF

Loans Reporter

Ryan Wangman was a reporter at Personal Finance Insider reporting on personal loans, student loans, student loan refinancing, debt consolidation, auto loans, RV loans, and boat loans. He is also a Certified Educator in Personal Finance (CEPF).In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership. He graduated from Northwestern University and has previously written for The Boston Globe.