There’s a surprisingly wide array of prices offered for a standard unsecured $10K personal loan for an individual with FICO 700-750 range. For this to be the case, it seems that both:
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Similar lending companies have different opinions about optimal pricing, either from an estimated repayment or customer long-term value plays.
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Customers shop around less than they should.
Full article and data source: Lending Times
Code for the graph:
# data from https://seekingalpha.com/article/4083106-lending-club-take-look-competition
aprs <-c(6.47, 10.99, 11.95, 11.76, 12.04, 12.12, 12.95, 13.65, 14.00, 13.80, 22.88)
qplot(aprs, geom = "histogram") +
ggtitle("APR offerings of $10K unsecured personal loan") +
xlab('APR (%)') +
ggplot2::scale_x_continuous(labels=6:25, breaks=6:25)