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Lenders offered better personal loan terms to most potential borrowers in January 2018 than they did one month earlier: APRs were down and amounts offered were generally up. January is a significant month for consumers seeking to manage debt accrued through the holiday season and the prior year. 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): Offered APRs to consumers with a credit score of 760+ averaged 7.41% in January.
Good credit (680 – 719 score): Offered APRs to consumers with a credit score between 680 and 719 averaged 15.79% in January.
The most common reasons for seeking a personal loan are credit card refinancing and debt consolidation. These two categories comprise two-thirds of all loan inquiries.
About the Report
The LendingTree Personal Loan Offers Report contains data from actual 36-month 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 about how their credit profiles may 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.