Comparing Personal Loan Offers Could Save Borrowers Up to $2,482
Borrowers who skip comparing loan offers could miss out on significant savings.
LendingTree data shows the difference between the highest- and lowest-cost offers when rate shopping could translate to nearly $2,500 in savings over three years. Across all credit profiles, consumers who compare personal loan offers could reduce their monthly payments by an average of $50.
Learn more about how credit scores impact personal loan offers and why comparing multiple loan offers could boost savings, along with additional tips for shopping for personal loans.
- Borrowers who received six or more personal loan offers could save up to $2,482 over three years by choosing the lowest-rate offer instead of the highest-rate offer. Those with credit scores of 720 to 759 and 760 or higher saw the greatest potential savings. Across borrowers who received six or more offers, average savings totaled $2,198 over three years.
- Borrowers who received three or more offers saw wider APR ranges and greater potential savings than borrowers overall. In this group, savings averaged $52 per month and $1,875 over three years.
- Across all credit profiles, comparing personal loan offers could save borrowers an average of $1,787 over three years. On monthly payments, borrowers could save $50 on average.
- Applicants with stronger credit profiles were more likely to receive multiple personal loan offers. Among borrowers with credit scores of 760 or higher, 97.4% received at least three offers and 87.9% received at least six. By comparison, 92.8% of borrowers with credit scores from 640 to 679 received at least three offers, while 67.4% received at least six.
Getting 6-plus personal loan offers could save borrowers nearly $2,500
Borrowers who receive six or more loan quotes have the greatest savings potential. Their potential savings average nearly $2,200 over three years and as much as $2,482 (for people with credit scores of 720 or higher).
The potential savings come from lower APR offers. Borrowers comparing six or more lenders received APR offers ranging from 19.26% to 31.44% — a 12.18 spread. Over the course of a loan term, even a small difference in APR can have a big impact on the monthly amount due and the overall amount paid; a double-digit difference could be massive.
In real dollars, that variance in APR would translate to a $348 monthly payment on the low end versus a $409 payment at the high end, or a $61 difference. (Note that payment estimates were calculated using the average loan amount received by borrowers who closed a personal loan during the analyzed period.)
Why can there even be such a big disparity between personal loan APR offers? It’s because each lender has its own underwriting model, funding costs, business goals and appetite for risk, says Matt Schulz, LendingTree chief consumer finance analyst and author of “Ask Questions, Save Money, Make More: How to Take Control of Your Financial Life.”
“One lender may be aggressively trying to grow its personal loan portfolio, while another may be more focused on profitability or limiting risk,” he said. “A borrower with excellent credit might qualify for an 8% APR from one lender and a 12% APR from another, simply because those lenders evaluate the opportunity differently.”
The only way to discover those differences, however, is to look at more than one lender.
How much borrowers with 6 or more offers could save on average by shopping around for a personal loan
| Credit score | Avg. APR offers | Avg. monthly payments | Total payments, 3 years | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Range | Minimum | Maximum | Spread | Minimum | Maximum | Spread | Minimum | Maximum | Spread |
| 640 to 679 | 22.45% | 32.75% | 10.31 | $363 | $416 | $53 | $13,083 | $14,973 | $1,890 |
| 680 to 719 | 19.95% | 32.38% | 12.43 | $351 | $414 | $63 | $12,646 | $14,902 | $2,256 |
| 720 to 759 | 16.76% | 30.68% | 13.92 | $336 | $405 | $69 | $12,099 | $14,581 | $2,482 |
| 760+ | 12.98% | 27.28% | 14.29 | $319 | $388 | $69 | $11,470 | $13,952 | $2,482 |
| All | 19.26% | 31.44% | 12.18 | $348 | $409 | $61 | $12,526 | $14,724 | $2,198 |
Even if monthly payment differences seem relatively modest, those small savings could accumulate into meaningful total savings over the life of the loan. “A lot of people are skeptical that rate shopping can be as impactful as it is,” Schulz says.
Part of that reluctance may have to do with the exaggerated claims from predatory lenders, according to Schulz. “When people hear that something can save them thousands of dollars, their first reaction might be an eye roll or a shrug rather than to dive in and give it a shot.”
The savings potential remains high with 3-plus personal loan offers
Borrowers don’t necessarily need to pull six or more personal loan offers to realize meaningful savings. We also analyzed data among those who received three or more offers. It found that these borrowers accessed more potential savings than borrowers overall, though slightly less than those who got six or more offers.
In this group, savings averaged a solid $52 per month ($9 less than those getting six-plus offers). The APR spread between the lowest and highest offers was 10.34. Even though the three-year savings of $1,875 is less than the potential savings for those getting six or more offers ($2,198), it’s still impressive.
How much borrowers with 3 or more offers could save on average by shopping around for a personal loan
| Credit score | Avg. APR offers | Avg. monthly payments | Total payments, 3 years | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Range | Minimum | Maximum | Spread | Minimum | Maximum | Spread | Minimum | Maximum | Spread |
| 640 to 679 | 24.05% | 32.36% | 8.31 | $371 | $414 | $43 | $13,368 | $14,899 | $1,531 |
| 680 to 719 | 21.27% | 31.98% | 10.71 | $358 | $412 | $54 | $12,876 | $14,826 | $1,951 |
| 720 to 759 | 18.03% | 30.42% | 12.39 | $342 | $404 | $62 | $12,315 | $14,534 | $2,218 |
| 760+ | 13.92% | 27.18% | 13.26 | $323 | $387 | $64 | $11,624 | $13,934 | $2,309 |
| All | 20.90% | 31.23% | 10.34 | $356 | $408 | $52 | $12,811 | $14,686 | $1,875 |
Different from those who received six-plus offers, borrowers in the 760-plus credit score range saw slightly higher potential savings than those with scores of 720 to 759.
Across all borrowers, here’s what happens when you shop around
It’s not just borrowers with high credit scores that benefit from comparison shopping, either. Across all credit profiles in our study, requesting multiple quotes could save eligible personal loan borrowers an average of $1,787 over three years. On a monthly payment basis, it could lower your cost of borrowing by an average of $50.
Also worth noting is how much of a role credit scores play in potential APRs. At the lower end, those with a 640 to 679 credit score received a starting APR of 24.25%. In comparison, those with a 760-plus score had APR offers starting at 14.04%.
However, to emphasize why rate shopping is so important, consider that the worst rate for those in the highest credit range (26.98% for 760-plus scorers) was higher than the best offer for those in the 640 to 679 range (24.25%).
The good news is that shopping around for personal loans is easier than ever before, thanks to prequalification. “The personal loan market is much more consumer-friendly than it was even a decade ago,” Schulz says. In the past, comparing loan offers required a bunch of paperwork and could drag on for days or weeks, he explains. “Today, lenders often let you prequalify online in just a few minutes, often using a soft credit check that doesn’t affect your credit.”
Borrowers can easily compare estimated rates, monthly payments and loan terms from several lenders before deciding where to formally apply.
How much borrowers could save on average by shopping around for a personal loan
| Credit score | Avg. APR offers | Avg. monthly payments | Total payments, 3 years | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Range | Minimum | Maximum | Spread | Minimum | Maximum | Spread | Minimum | Maximum | Spread |
| 640 to 679 | 24.25% | 32.06% | 7.81 | $372 | $412 | $40 | $13,404 | $14,842 | $1,438 |
| 680 to 719 | 21.59% | 31.80% | 10.21 | $359 | $411 | $52 | $12,932 | $14,793 | $1,861 |
| 720 to 759 | 18.30% | 30.32% | 12.02 | $343 | $403 | $60 | $12,362 | $14,515 | $2,153 |
| 760+ | 14.04% | 26.98% | 12.95 | $323 | $386 | $63 | $11,644 | $13,898 | $2,254 |
| All | 21.20% | 31.04% | 9.84 | $357 | $407 | $50 | $12,863 | $14,650 | $1,787 |
Borrowers with stronger credit are more likely to receive multiple offers
Aside from being a main factor in the APRs that borrowers receive, credit scores can also play a role in the number of personal loans you can access. Nearly all borrowers with 760-plus credit received multiple offers, while lower-score borrowers were somewhat less likely to.
A closer look reveals that among people with 760-plus credit scores or higher, 97.4% received at least three offers, while 87.9% received at least six. Among those with scores ranging from 640 to 679, 92.8% received at least three offers, while 67.4% received at least six. (That said, the study findings also demonstrate that borrowers with less-than-stellar credit can still benefit by comparing multiple offers.)
In general, as credit scores rise, borrowers can access more loan offers. Lenders and banks that offer personal loans tend to compete more aggressively for lower-risk borrowers because they have a higher likelihood of completing repayment.
5 tips for shopping for personal loans
Taking out a personal loan is a big financial commitment. Borrowers who shop around before settling on one can help ensure they’re finding the best possible deal for their situation.
Here are some important loan shopping tips to keep in mind:
- Compare several lenders before accepting. “There can be major differences among lenders when it comes to rates, fees and other loan terms,” Schulz says. Comparing multiple offers can make those differences crystal clear and help you decide which loan best meets your needs and budget.
- Prequalify whenever possible. “Prequalification shifts the balance of power toward the borrower,” Schulz explains. It allows consumers to compare multiple lenders side by side and choose the loan that best fits their needs without worrying about a credit score impact.
- Focus on APR — not just the monthly payment. While the monthly payment is important because it tells you whether a loan fits your budget, the APR tells you what the loan costs, Schulz says. “Two loans can have nearly identical monthly payments while carrying very different interest rates and fees,” Schulz says. APR, he adds, gives consumers the best apples-to-apples comparison because it reflects both the interest rate and most upfront fees. “If you’re shopping for a personal loan, start with a payment you can comfortably afford, but use APR to identify the best value.” That way, you can keep your monthly budget and your total borrowing costs under control.
- Avoid borrowing more than necessary. Just because a lender tells you that you can afford a huge loan, it doesn’t mean you should take more than you need. Determine how much you need before the process starts and stick with that number. “That way, you’ll make the most informed decision possible,” Schulz says.
- Improve your credit before applying, if possible. “Even a modest improvement in your credit profile could qualify you for a lower APR, potentially saving you hundreds or even thousands of dollars over the life of the loan,” Schulz says. While there’s no quick fix for your credit, lowering your credit utilization (the amount you owe relative to your available credit) is a great start. If paying off a big chunk of your balance isn’t an option, you could also ask your credit card issuers for a credit limit increase, Schulz says. “If you’re approved and don’t increase your spending, your utilization rate falls, which can help your credit score.” Other than that, keep making every payment on time, avoid applying for new credit in the months leading up to your loan application and check your credit reports for any possible errors that could drag down your score.
Methodology
LendingTree researchers analyzed personal loan request and offer data from the LendingTree personal loan marketplace between May 1 and May 31, 2026. Analysts calculated the average offered APR for consumers who sought 36-month personal loans and grouped borrowers by credit score range.
Analysts also calculated average offered APRs for borrowers who received at least three offers and at least six offers. Monthly and total payment estimates are based on the average loan amount received by borrowers who closed a personal loan during the same period. Payment figures are rounded to the nearest dollar.
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