LendingTree Personal Loan Offers Report – December 2017
For the calendar month of December 2017, lenders offered substantially higher loan amounts than one year earlier. Rate and loan amount offers varied widely among consumers, depending on factors including, but not limited to, credit score, income, and current debt obligations.
Excellent credit (760+ score): Loan offers to consumers with a credit score of 760+ averaged over $24,000 in December.
The average best APR offered to all borrowers with credit scores of 760 or above was 7.54%, an increase of 17 basis points from the prior month, and a drop of 24 basis points from the same period one year ago.
At $24,177, the average loan amounts offered with the best APRs to all borrowers with a score of 760 and above was down almost 2% ($451) from November, and up 26% ($6,179) from the same period one year ago.
The top 10% of offers, presented to borrowers with the best profiles within this group, had APRs of 5.07% on average, and loan amounts of $41,768. A borrower with this APR and loan amount would save $3,407 by consolidating debt with a 10% APR over a three-year term.
Good credit (680 – 719 score): Loan offers to consumers with a credit score between 680 and 719 averaged over $15,000 in December.
The average best APR for all borrowers with credit scores of 680 – 719 was 15.91%, down 1.5% from last month, but up 2% from a year earlier.
At $15,468, borrowers with scores of 680 – 719 saw the amounts offered with the best APRs drop by 4% ($624) in the last month, but rise by 343 basis points ($530) over the last year.
The top 10% of offers, presented to the borrowers with the best profiles within the 680 – 719 credit score range, saw an average best APR of 7.37%, offered with an average loan amount of $25,385. A borrower with this APR and loan amount would save $3,306 by consolidating debt from a 15% APR over a three-year term.
The most common reasons for seeking a personal loan are credit card refinancing and debt consolidation. These two categories comprise over 63% of all loan inquiries.
About the Report The LendingTree Personal Loan Offers Report contains data from actual loan terms offered to borrowers on LendingTree.com by third-party lenders. Our report averages the best offered APRs by credit score band and the best 10% of offered APRs within each credit score band, as well as the average loan amounts that accompanied those offers. We organize results by credit score so that borrowers have added information on how their credit profiles affect their loan prospects.
The personal loan market is a fundamental component of personal finance products available to consumers, and personal loans are often used to refinance existing debt. Knowledge about the terms available to similar borrowers can be a key to making decisions about managing personal finances. We believe this report is an important addition to standard industry surveys and reports on personal loan rates, as most quoted industry rates are either the minimum possible rate or the average rate, and few borrowers will experience either.