Personal Loans

Variance in Offered Rates for the Same Borrower on the Same Loan – December 2020

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At LendingTree, we know that the same prospective borrower can be offered vastly different terms from lenders for the same loan. In fact, our marketplace is intended to show borrowers multiple offers so they can choose the best option for their money.

Below are the average differences, or spreads, between the highest (most expensive) and lowest (least expensive, or best) annual percentage rates (APRs) offered to the same borrowers across different loan types on our platform in the previous calendar month.

APRs combine both interest rates and loan origination fees to show the actual cost of a loan in each year.  Some borrowers are willing to pay higher fees when they open their loans in exchange for a lower interest rate (and thus, lower monthly payments). Some borrowers prefer to pay higher interest rates to avoid a big upfront fee. Because of the variety of options, APRs can reveal actual loan costs.

Implied cost savings between the highest and lowest offers for different loan types


For every loan inquiry that received at least one offer from a lender, analysts calculated the spread between the lowest and highest APRs offered to each prospective borrower. Lowest, highest and the spread were averaged across credit score ranges for each loan type. The credit score ranges are scores under 640, 640 to 679, 680 to 719, 720 to 759, and 760 or higher.


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