Bankrate Personal Loans Review – Find A Loan Faster
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Bankrate makes it easy to find a loan you can afford through a prequalification process that should only take a few minutes to complete.
9/10
Ease of Use
9/10
Costs
9/10
Features
8/10
Services
9/10
As you might imagine, getting prequalified for a personal loan isn’t any fun. You may have to provide pay stubs and other financial information, and even then, you’re not guaranteed to get a loan.
Prequalification is just a preliminary step in the application process to determine whether you have a good credit history and are a good risk for a personal loan. A personal loan is usually an unsecured loan that doesn’t require any collateral.
Technology has made getting prequalified easier. You can shop online for loans and learn within minutes if you’re likely to get a loan. The personal finance website Bankrate is among the online leaders that help people find personal loans through a free process that doesn’t impact their credit score.
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What are Bankrate personal loans?
To start, you should know that Bankrate isn’t a lender. It’s a personal finance website that offers much information about loans and other personal finance topics.
It earns money through advertisements and sponsored products and services. When you click on a link on the website, you may be taken to a lender’s website. Bankrate will earn a fee from the lender when a referred customer takes out a loan.
Bankrate started in 1976. It’s based in New York City, and 2017, it became a subsidiary of Red Ventures.
Bankrate offers free information on mortgages, banking, credit cards, loans, investing, home equity, insurance, retirement, and other personal finance topics. Its section on personal loan rates includes factors it uses to create a list of the best personal loan providers.
If you’re looking to borrow a lump sum to pay for a large expense, such as a wedding, debt consolidation, or emergency expense, Bankrate is a good place to start looking for lenders.
The site is best for potential borrowers looking for basic information on how personal loans work. It gives a lot of information on personal loans and how to prequalify them, including an overview of lenders and a few quick ways to see what interest rates you may qualify for.
Related: Best Personal Loans for Fair Credit
Use Quicken Loans to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- TrustPilot Rating 4.6 out of 5
- Connect with lenders for $0
- 100% online experience.
How does Bankrate work?
Bankrate is free to use. You don’t have to sign in to read or use the website, though users can create an account. Signing up for a free account unlocks some video courses and a suite of premium financial tools and products, including seeing loan offers faster.
Our review doesn’t include initially signing up for an account. Instead, we start at the Bankrate home page and click on the “Personal loans” box to get started. However, by the end of the steps below to prequalify a loan, Bankrate requires users to sign up for a Bankrate account. So, either way, you’ll need to sign up for a Bankrate account if you want to prequalify for a loan through the site.
From the “Personal loans” box, we’re then taken to the Bankrate rates page for personal loans, which is updated monthly. The site considers each lender's interest rates, terms, and features. This page also has a lot of information on how unsecured personal loans work.
Start by using the "Check Your Personal Loan Rates" section on the page and fill in your loan amount, credit score, Zip code, annual income, and why you need the loan.
This is an important step to take. By answering a few questions in two minutes or less, you’ll be shown which personal loans you prequalify for. It’s free, and the soft credit check won’t impact your credit score.
Prequalifying can make applying for a loan and getting personal loan offers easier. It’s not a guarantee you’ll get a loan as you continue the application process, but it should give you a better idea of what you qualify for and what personal loan rates you’ll be offered.
The first question it asked was how much I wanted to borrow. I went with the default amount of $10,000.
It next asked me why I was looking for a loan, including the options of debt consolidation, credit card refinancing, home improvement, major purchases, or to cover an unexpected cost.
I chose a major purchase and was asked my credit score. I clicked “excellent.”
I was then asked what my employment status was. I selected “self-employed.”
It next asked for my gross annual income. I stuck with the default of $50,000.
You'll be asked for your Zipcode to find loan offers in your area, your home address if you rent or own, your monthly housing payment, your name, and an email address so Bankrate can send you status updates about your personal loan offers and more.
Now you must create a free Bankrate account to save your progress. You start by creating a password.
Your phone number is then requested, which requires agreement to its terms and conditions.
Your date of birth is requested to verify your identity and run a soft credit check, which won’t impact your credit score.
The last four digits of your Social Security Number are requested to verify your identity and find the offers you’re eligible for. Then, a credit check will be run that won’t affect your credit score.
I was then matched with eight of its lending partners for a $10,000 loan. The annual percentage rate ranged from 5.75% to 12.49%. The loan was for three or five years, and monthly payments ranged from $209 to $334.
Each was a prequalified offer. By clicking on the blue “Next” button under each loan offer, I was taken to the lender’s website to complete the online application.
Other steps from one lender required me to provide more basic information, such as my citizenship status and income source, create an account, verify my identity, link income sources, and sign documents online.
If approved, I could get cash before the next business day.
Is this faster than going to a lender’s website and applying for a loan? Yes, but not by much. One big advantage of prequalifying through Bankrate is getting several preapproved loan offers in one place, which makes comparing them easier.
But if I already know which lender I want to work with, it may take just as much time to go straight to the lender’s website. The information I filled in at Bankrate was transferred to my loan offers, but I had to enter more information to complete the application.
Use Quicken Loans to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- TrustPilot Rating 4.6 out of 5
- Connect with lenders for $0
- 100% online experience.
How much does Bankrate cost?
Bankrate’s service is free. As the site makes clear on its advertising disclosure, Bankrate is paid when you click on an offer and are approved for a loan you accept.
The loans you’re referred to by Bankrate, just like any other loan, may include fees. Read the loan terms or call the lender for specifics for any preapproved loan you’re interested in. Fees can include prepayment fees, application fees, prepayment penalties, origination fees, late fees, and interest rates. Some loans may have a minimum loan amount.
The lower your credit score, the more likely a lender will charge more fees.
Shopping for a lender should include looking at each lender’s fees. Some can be avoided, such as having autopay to avoid late fees. The fees should be listed on each lender’s website. If you can’t find them, call customer support for help.
Bankrate features
Bankrate has many features on its website that are related to personal loans. Most of it is explanatory to inform borrowers what they should expect when applying for a personal loan.
Comparison factors
Bankrate focuses on four factors that borrowers should compare when looking at loan lender options:
- APR: The annual percentage rate is the interest rate and fees expressed as a percentage.
- Loan term: How long you have to pay back what you borrow.
- Loan amount: How much you can borrow.
- Best for: What situation the lender best fits. Categories range from overall best to best in-person banking experience.
The loan rate you’re offered depends on multiple factors, including:
- Credit score
- Annual income
- Debt-to-income ratio
Interest rates by credit rating
Your credit rating is one of the biggest factors in setting interest rates. Lenders may require a minimum credit score, and those with bad credit may be charged the highest personal loan rates. FICO is the most common type of credit score used, and you may want to check yours before applying for a loan.
Bankrate shows borrowers what interest rate range they can expect from lenders based on their credit score range. The site says the average personal loan interest rate is 12.22% as of April 24, 2024. Here’s the site’s breakdown of the credit score range and interest rates by credit rating:
Credit | Credit score range | Average personal loan interest rate |
Excellent credit | 720-850 | 10.73%-12.5% |
Good credit | 690-719 | 13.5%-15.5% |
Average credit | 630-689 | 17.8%-19.9% |
Bad credit | 300-629 | 28.5%-32% |
Use Quicken Loans to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- TrustPilot Rating 4.6 out of 5
- Connect with lenders for $0
- 100% online experience.
Eligibility requirements and best loans
Bankrate also does a good job of explaining eligibility requirements for personal loans. For example, it recommends certain lenders based on certain types of loans and other criteria, including the best loan for:
- Small loan amounts
- Fewest loan fees
- In-person banking
- Using co-signers
- Little credit history
- Paying credit card debt
- Fast funding
- Low APRs
- Debt consolidation
- Bad credit
- Generous repayment terms
- Overall personal loan
Who is Bankrate best for?
Comparison shoppers. Bankrate is best for comparison shoppers, which should include everyone who needs a loan. The site is free to use, and prequalifying should only take a few minutes, so there isn’t an excuse not to shop for the best loan.
Interest rates, loan terms, and how much the low minimum loan amount are all available at a glance. The site is easy to use and can be a good start to finding loans you qualify for.
Use Quicken Loans to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- TrustPilot Rating 4.6 out of 5
- Connect with lenders for $0
- 100% online experience.
Who shouldn’t use Bankrate?
Borrowers with bad credit. You might not qualify for a personal loan if you have bad credit. These types of loans are usually unsecured, which means your car or home isn’t used as collateral. Lenders base their decision on whether you’re a good credit risk without putting anything of value upfront for the loan. Borrowers with a bad credit report for problems such as paying their credit cards late will probably be considered at high risk of not repaying loans.
Pros and cons
Pros
- Bankrate’s information on personal loans is easy to read and full of information that should help borrowers make a decision on a lender.
- The site’s prequalification process is easy and takes only a few minutes.
- Most people should be able to find a range of loans.
- Bankrate is open about how it makes money through loan referrals.
Cons
- Users must eventually create an account to see personalized rates after answering some prequalification questions.
- Bankrate’s terms and conditions for creating an account include possibly getting phone calls.
- Users should also compare rates with the banks and credit unions they already do business with.
FAQs
What will I do after prequalifying?
After being prequalified for a loan, you’ll choose the lender you want to work with and will be directed to their website to complete the loan application. This may require submitting documents such as pay stubs, tax returns, and verifying your personal information. A credit check may be required. When completed, the lender will tell you when you can expect to see the loan amount deposited into your account, which may be as soon as the next business day.
Is Bankrate a lender?
No. It refers borrowers to loans after helping them prequalify, but it doesn’t provide loans. It earns money through referrals.
Can I use a personal loan for any expense?
If you’re using the money for a legal purpose, most lenders don’t care what your loan purpose is. Debt consolidation, home renovations and emergency expenses are the most common uses for personal loans. Some lenders, however, may restrict their use, such as only for education costs or credit card debt consolidation.
How much can I borrow?
It depends on your credit score. In general, the higher your credit score the more money you can borrow, with maximum loan amounts from $50,000 to $100,000. The minimum loan amount can be $1,000 to $5,000, which people with fair credit may only be allowed. However much you’re allowed to borrow, it’s best to only borrow what you can afford to repay and to only borrow the amount you need.
Use Quicken Loans to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- TrustPilot Rating 4.6 out of 5
- Connect with lenders for $0
- 100% online experience.
The bottom line
Bankrate makes it easy to find a loan you can afford through a prequalification process that should only take a few minutes to complete. It helps borrowers understand how the personal loan application process works and explains some of the best lenders for their situation.
Its loan offers are personalized; fast funding can mean paying for an expense within a few days. Personal loan rates are often higher than those for auto or home loans, but the eligibility requirements are such that people with the best credit scores can get quick funding for loans they need soon.
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Writer
Aaron Crowe is a freelance journalist who specializes in personal finance writing and editing. He has worked at newspapers, where he won a Pulitzer Prize, and has written for numerous online publications. These include AOL, US News & World Report, WiseBread, Bankrate, AARP, and many websites focusing on housing, credit and insurance. He lives in California with his wife and daughter.
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