WalletHub Personal Loan Review Methodology

John S Kiernan, WalletHub Managing EditorDec 12, 2023

John S Kiernan, WalletHub Managing Editor
Dec 12, 2023

In order to provide the most accurate personal loan reviews, WalletHub uses 17 key metrics grouped into three overall sections: Terms, Requirements & Application, and Reviews & Transparency. We rate each section on a scale of 0 to 5, with 5 being the best, and then average the scores of the three sections to produce an overall rating for the loan.

All metrics for which we are not able to find data receive a score of 0, aside from “BBB rating” and “Reviews on WalletHub,” which would receive a score of “N/A” if applicable. If a metric receives a rating of N/A, it is subtracted from the maximum point total.

Ratings for each metric reflect how close a loan offer is to WalletHub’s definition of a 5-star loan, which is based on market conditions and what we believe are reasonable terms. We compare loan offers to that standard to give a numerical approximation of how reasonable and competitive the loan is compared to others.

While we understand that subprime lenders have to offer high APRs in order to compensate for the credit risk of borrowers in the segment, we cannot in good conscience assign five stars to a loan with a 200% APR, for example. The loan could still be right for some people, depending on their circumstances, despite a low rating for its APR.

For companies where APR and fee ranges differ greatly by state, we use data from the most populous state serviced by the company.

Below, please find the complete grading rubric used to evaluate loan offers and produce WalletHub’s personal loan ratings.

Loan Terms: 60 points

Maximum APR (20 Points)

Up to 19.99% - 20 points
Between 20.00% and 29.99% - 15 points
Between 30.00% and 39.99% - 10 points
Between 40.00% and 59.99% - 5 points
60% or higher - 0 points

Minimum APR (20 Points)

Below 9.99% - 20 points
Between 10.00% and 19.99% - 15 points
Between 20.00% and 29.99% - 10 points
30.00%+ - 0 points

Max Loan Origination Fee (10 points)

None - 10 points
Between 0.01% and 1% - 7.5 points
Between 2.00% and 3.99% - 5 points
Between 4.00% and 6.00% - 2.5 points
6%+ - 0 points

Maximum Loan Amount (5 points)

$10,000 or higher - 5 points
Between $5,000 and $9,999 - 3 points
Between $2,500k and $4,999k - 2 points
Between $1,000k and $2,499 - 1 point
Up to $1,000 - 0 points

Maximum Payoff Period (5 points)

More than 36 months - 5 points
36 months or fewer- 3 points
24 months or fewer - 2 points
12 months or fewer - 1 points
6 months or fewer - 0 points

Requirements & Application: 20 points

When is the soonest you can get your money? (5 Points)

Less than 3 business days after applying - 5 points
Between 3 and 7 business days after applying - 4 points
7 to 10 business days after applying - 2 points
More than 10 business days after applying - 0 points

How easy it is to apply (5 points)

Online option offered - 3 points
Phone option offered - 1 points
In-person option offered - 1 point

Can you pre-qualify with a soft pull? (4 points)

Yes - 4 points
No - 0 points

Can non-citizens apply? (2 points)

Yes - 2 points
No - 0 points

Can you apply with an ITIN/passport instead of SSN? (2 points)

ITIN works - 1 point
Passport works - 1 point

Co-applicants/joint application (2 points)

Allows co-applicants or joint applications - 2 points
Does not allow co-applicants or joint applications - 0 points

Reviews & Transparency: 20 points

BBB rating (3 points)

A- to A+ - 3 points
B - to B+ - 2 points
C+ or below - 0 points
Not rated - N/A

Complaints Filed with Consumer Financial Protection Bureau per 1,000 Keyword Volume (3 points)

Less than 1.00 - 3 points
From 1.01 to 10.00 - 2 points
From 10.01 to 15.00 - 1 point
More than 15.00 - 0 points

Transparency on APR Range (4 points)

APR is easy to find on the online site - 4 points
APR can be found online but not easily - 1 point
APR not found on website - 0 points

Transparency on fees (4 points)

Fees are easy to find on the online site or if fees are not listed because there are none - 4 points
Fees can be found online but not easily - 1 point
Fees not found on website - 0 points

Transparency on credit score requirements (3 points)

Credit score requirements are easy to find on the online site - 3 points
Credit score requirements can be found online but not easily - 1 point
Credit score requirements not found on website - 0 points

Reviews on WalletHub (including from reputable external sources that WalletHub uses) (3 points)

4 or above star rating - 3 points
3 - 3.99 star rating - 2 points
Below 3 star rating - 0 points
Less than 10 reviews on WalletHub to score - N/A

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We work hard to show you up-to-date product terms, however, this information does not originate from us and thus, we do not guarantee its accuracy. Actual terms may vary. Before submitting an application, always verify all terms and conditions with the offering institution. Please let us know if you notice any differences.