Personal Loans Rating Methodology (original) (raw)

Our team researched 37 of the country’s most popular personal lenders, including large online companies like SoFi, big banks like Wells Fargo and peer-to-peer lenders like Upstart. We regularly collect data on each company’s loan offerings and terms, and use this information to score each provider based on key metrics that matter most to you, the potential borrower.

Our Rating System for Personal Loans

To create our rating system, we analyzed each personal loan company’s disclosures, licensing documents, marketing materials, sample loan agreements and websites to understand their loan offerings and terms. We then examined each company’s public profile with the Better Business Bureau to gauge its standing in the industry. Next, we reviewed any available legal documents detailing settlements or agreements with federal and state regulators. We also factored in its rating on Trustpilot for an evaluation of overall customer experience, and its years in business to determine its stability. We focus on five key categories to create these ratings:

Our team continuously monitors personal loan data to ensure rankings and provider information are up to date.

Factors We Use To Score Personal Loan Companies

Our scores are based on a 100-point rating system that is converted into a five-star scale. More important factors — such as a loan’s affordability and features — are weighted more heavily. Below are more details on the data points and measures that go into each rating category.

Affordability (30%)

A key factor in whether a personal loan is a good deal is how easy it is to pay back. Our affordability category looks at two major factors:

Note that the interest rate you qualify for will depend on factors like credit score, the length of your loan and the amount you borrow; the higher the interest rate, the higher your monthly payment will be — and the more money you’ll pay over the lifetime of your loan.

Note that other fees can add to the cost of your loan. Because origination fees are often the most significant you pay on a personal loan, we include them in the affordability category. Other fees, such as late fees and prepayment penalties, are often avoidable and are included in loan features.

Loan Features (25%)

Equally important for most personal loan borrowers are the terms and conditions each lender offers. We look at a wide range of data points in this category, including:

Companies also score points for not charging late fees, offering autopay discounts or other discounts.

Company Reputation (20%)

A lender’s reputation is another key factor for personal loan borrowers. We review several major factors to determine company reputation:

Customer Experience (15%)

How easy a company is to work with is also a key consideration for personal loan borrowers. We look at a wide range of data points in this category, including:

Accessibility (10%)

The accessibility of a company to its customers is a key factor for personal loan borrowers. We review three major factors to determine this for each institution:

The Bottom Line: How To Choose the Right Personal Loan

Our rating system and company reviews are intended to help you make the best decision possible when shopping for a personal loan. We collect data on each company’s affordability, loan features, customer experience, company reputation and accessibility to give you a comprehensive look at the provider and help you weigh whether it fits your needs. However, the highest-rated lenders on our list may not always make the most sense for you.

Every person’s financial situation is different, and borrowers may not qualify for every loan option. Before signing a loan agreement, make sure you thoroughly review and understand the terms of the loan and your expected monthly payment. You may also consider speaking with an approved credit counseling provider to help you review your options.

Cash Advance Apps Methodology

When looking for a cash advance app, you could find a number of product options with different pricing structures and repayment terms. To help you make the most informed decision, we at the MarketWatch Guides team provide thorough evaluations of the best cash advance companies in the U.S.

Our team researched 17 of the country’s most popular cash advance apps, collecting data on each company’s cash advance offerings and terms. We then used this information to rate each provider based on key metrics that matter most to potential borrowers.

Our Rating System for Cash Advance Apps

To create our rating system, we analyzed each cash advance company’s disclosures, marketing materials and websites to understand its offerings and terms.

We focused on four core categories to create these ratings:

We collected 21 data points across these categories for each company, including app features, pricing structures, repayment options and possible loan amounts. We also examined the providers’ public profiles with the Better Business Bureau (BBB) and Trustpilot to gauge their standing in the industry. We then noted their app ratings and customer support options to evaluate the overall user experience.

Our team regularly monitors information on cash advance apps to ensure provider information is up to date.

Factors We Use To Score Cash Advance Companies

Our scores are based on a 100-point rating system that is then converted into a 5-star scale. More important factors — such as affordability and app features — are weighted more heavily. Below are further details on the data points that go into each rating category.

Affordability (32.5%)

Cash advances generally have lower associated costs than payday loans. But because fee structures vary, we want to give you context for the affordability of each app. We base our affordability rating on four factors:

Features (25%)

The borrowing terms and in-app tools each company offers are also of key importance in evaluating cash advance options. Here are the data points we look at in this category:

Customer Experience (22.5%)

The customer experience score is based on several key factors that determine how easy the app is to use, along with the quality and availability of customer service. The factors we rate are:

Reputation (20%)

As with every type of lending product we review, a cash advance company’s reputation is a crucial factor in our ratings. We look at several components of a provider’s reputation in our ratings:

The Bottom Line: How To Choose the Right Cash Advance App

Our rating system and company reviews are intended to help you decide whether a cash advance is right for you and which provider best meets your needs. We collect data on each company’s affordability, app features, customer experience and industry reputation to give you a comprehensive look at the provider.

However, even the highest-rated cash advance apps on our list may not make the most sense for you. Every person’s financial situation is different, and you may not qualify for the largest advance a company offers, even if you have a high income.

Before agreeing to take a cash advance, thoroughly review the terms and make sure you understand your expected repayment date and the full cost of the service.

Albert, B9, Beem, Brigit, Chime, Clair, Current, Dave, Earnin, Empower, FloatMe, Gerald, Klover, MoneyLion, Rocco, SoLo, Varo

Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional since every person’s situation and needs are different.