LendingTree Personal Loan Offers Report – January 2018
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.
The average best APR offered to all borrowers with credit scores of 760 or above was 7.41%, a decrease of 13 basis points from the prior month, and 47 basis points from the same period one year ago.
At $24,218, the average loan amounts offered with the best APRs to all borrowers with a score of 760 and above, was down 17 basis points ($41) from December, but up over 23% ($5,607) 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 4.98% on average, and loan amounts of $34,892. A borrower with this APR and loan amount would save $2,896 by consolidating debt with a 10% APR over a three-year term.
Good credit (680 – 719 score): Offered APRs to consumers with a credit score between 680 and 719 averaged 15.79% in January.
The average best APR for all borrowers with credit scores of 680 – 719 was 15.79%, down 12 basis points from last month, but up almost 200 basis points from a year earlier.
At $15,628, borrowers with scores of 680 – 719 saw the amounts offered with the best APRs increase by 1% ($160) in the last month, but drop by 1.72% ($268) from January 2017.
The top 10% of offers, presented to borrowers with the best profiles within the 680 – 719 credit score range, had an average best APR of 7.19%, offered with an average loan amount of $24,130. A borrower with this APR and loan amount would save $3,215 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 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.