Our method
How we rate lenders
Every lender we list gets a score out of 5. The score comes from five things, each worked out from the terms the lender publishes. The same formula is used for every lender, and it is printed in full below, so you can check our maths.
What never changes a score
- What a lender pays us, or whether it pays us at all once it is listed.
- How many people click a lender, or how well it converts for us.
- Anything a lender tells us privately that it has not published.
We rate a chosen set of well-known lenders, whether or not they are partners, so this is not a ranking of every lender. Other lenders may suit you better.
The five criteria
Cost
How expensive is it likely to be?
- Starts from the middle of the lender's published APR range: 5 points at 6% or lower, falling in a straight line to 0 points at 36% or higher (the widely used affordability benchmark).
- Then subtracts for the highest origination fee the lender states: a quarter of a point for every 1% of fee, up to a maximum of 1.5 points.
Access
How open is it to people with fair credit?
- Based on the lowest credit score the lender says it will consider: 5 points at 580 or below, 4 at 620 or below, 3 at 660 or below, 2 at 700 or below and 1 above that.
- If the lender does not publish a minimum score, this earns 0 points.
Features
Does it make borrowing easier or safer?
- 1.5 points if you can see your rate with a soft credit check.
- Funding speed: 1.5 points for funds in 1 business day, 1 point for up to 3, half a point for up to 7.
- 1 point if it pays your creditors or contractor directly.
- Half a point for a wide choice of terms (36 months or more between shortest and longest), and half a point for loan amounts that reach $50,000.
Transparency
Is it upfront about what it costs?
- 2 points for stating that there is no prepayment penalty.
- 1.5 points for publishing its highest origination fee.
- 1.5 points for publishing all three of APR range, loan amounts and terms.
Support
Does it look after borrowers after the loan starts?
- 2.5 points if it reports your payments to the credit bureaus, so on-time payments can help your history.
- 2.5 points if it offers a hardship program.
How much each part counts
The weights depend on what matters most for that kind of loan. They add up to 100.
| Loan type | Cost | Access | Features | Transparency | Support |
|---|---|---|---|---|---|
| Personal loan, fair credit | 35% | 25% | 15% | 15% | 10% |
| Debt consolidation | 35% | 15% | 20% | 20% | 10% |
| Home improvement | 30% | 15% | 25% | 20% | 10% |
A worked example
Here is an invented lender, only to show the arithmetic. It is not a real company or offer. Scored as a fair-credit personal loan:
- Cost (35% weight)1.5 / 5
- Access (25% weight)4.0 / 5
- Features (15% weight)3.0 / 5
- Transparency (15% weight)5.0 / 5
- Support (10% weight)2.5 / 5
Score: 3.0 / 5
Illustrative only. Each part is multiplied by its weight and added up.
How lenders are ordered
- Highest score first. If two lenders tie, they keep a fixed order and neither is promoted.
- If a lender has not published enough to be scored, we say "Not scored" and list it last.
- "Best for" labels (such as lowest cost) are given automatically to whichever listed lender does best on that measure, and only when there are at least two lenders to compare.
Where the numbers come from
Only from the lender's own public pages and terms. Each listing shows the month we last checked. If a lender's page does not state something, it earns no points for it. We never guess. That is not a claim the lender lacks it, and it does mean lenders that publish less tend to score lower. Each rated lender shows how many of the 11 facts its page stated.
What a score cannot tell you
- It is not your rate. Your offer depends on your credit, income and the lender's review.
- It cannot see service quality, complaints or how a lender treats people in practice.
- A high score does not mean a lender is right for you. A lower score may fit your situation better.
Keeping it current
We re-check every listed lender at least every 90 days, and straight away if we learn of a change. If you spot something out of date, tell us.
See also our advertising disclosure and how to compare APRs.