- The credit score you need to qualify for a personal loan will vary depending on the lender.
- Generally, lenders like to see borrowers with a credit score in the mid-600s.
- In addition to your credit, lenders will consider your debt-to-income ratio and employment status.
If you need cash to fund a project or pay a bill, a personal loan can help. Whether or not you're eligible for one will depend largely on your credit score, and the minimum requirements will vary among lenders.
Minimum credit score required for a personal loan
Generally, lenders require a credit score in the mid-600s to qualify for a personal loan, though some will lend to borrowers with lower credit scores. The better your credit score, the better your interest rate should be. If your credit is poor, check out Insider's guide to the best personal loans for bad credit.
Just because you don't qualify with one lender doesn't mean you won't qualify with another. Here are examples of the minimum credit scores required for the best online personal loans.
| Lender | Minimum credit score |
| LightStream | 660 |
| SoFi | 680 |
| Avant | 600 |
| Happy Money | 640 |
Other factors influencing personal loan terms
However, your credit score isn't the only thing to take into account when trying to get a personal loan. Lenders will also consider your debt-to-income ratio — or the amount of debt you owe each month in relation to your gross monthly income — and employment status, among other financial factors.
Also note that each lender has its own particular rules; with US Bank personal loans, for example, the minimum credit score is 660 for existing customers, but there's a separate, higher minimum for non-customers that the bank doesn't disclose.
Compare Personal Loan Rates
Average personal loan rates by credit score
A higher credit score generally means you'll receive a lower rate — but not always.
The difference in interest rates for someone with an excellent credit score versus a someone with a poor credit score can be quite large. And the higher rates significantly drive up the overall cost of a loan for poor-credit borrowers.
For example, looking at average APRs on personal loans in mid-February 2024, borrowers with excellent credit scores (720 or higher) got rates of around 20%, while those with poor credit scores (le sss than 620) paid almost 148%.
Credit score | Score range | Average APR |
Excellent | 720+ | 20.19% |
Good | 660-719 | 28.01% |
Fair | 620-659 | 92.74% |
Poor | Less than 620 | 147.74% |
The average rates (APRs), terms, and loan amounts were sourced through Fiona.com. This information is based on aggregated, anonymized offer data from Fiona's lender marketplace of financial services providers as of July 10. The data presented in this table applies only to lenders with APRs below 30%, and is not specific to any individual lender or consumer.
See our picks for the best debt consolidation loans »
Improving your credit score for a personal loan
If you don't qualify for a loan from any lender and you're trying to get a loan with bad credit, you can try to increase your credit score to increase your likelihood of approval. Additionally, improving your credit score can net you better terms on your loan.
To get your credit report from the three major credit bureaus, use annualcreditreport.com. While you won't receive your credit score in these reports, you'll get information about your credit and payment history. While reviewing your credit report, you can spot errors and figure out where you can improve.
You can usually check your credit score for free on your credit card statement or online account. You can also purchase it from a credit reporting agency. Many lenders will also allow you to prequalify for a personal loan, which has no impact on your credit score, before submitting a full application.
See our roundup of the best unsecured loans »
If you have a low credit score and lenders have denied your loan applications, here are some steps you can take to boost your credit score:
- Request a copy of your credit report. Look for any mistakes on your report that could be damaging your score. If necessary, reach out to the credit bureau to talk about fixing the error.
- Maintain low credit card balances. Having a credit utilization rate — the percentage of your total credit you're using — of 30% or less will prove to lenders that you can handle your credit well.
- Create a system for paying bills on time. Your payment history makes up a substantial percentage of your credit score, and lenders like to see steady and reliable payments in the past. Set up calendar reminders or automatic payments so you don't fall behind.
If you can wait to take out a personal loan until you increase your credit score, you may qualify to borrow with more lenders and be eligible for better rates.
How personal loans work
A personal loan is a lump sum of money you can borrow for a variety of reasons, including home improvements, medical bills, debt consolidation, and even vacations. You'll repay the loan in fixed monthly installments, and it usually comes with a fixed interest rate. The amount you can borrow typically ranges from $1,000 to $100,000.
Most personal loans are unsecured, which means you don't have to put up any collateral. Average personal loan interest rates tend to be higher than rates on secured loans like mortgages and auto loans, and roughly comparable to credit card interest rates if you have a lower credit score.
If you need a personal loan, you should start by shopping around with different lenders and seeing which lender offers you the best terms on a loan.
See our picks for the best personal loans »
Credit score for personal loans FAQs
It is possible to get a personal loan with a low credit score, but your may have limited options. Lenders may require you to pay higher interest rates or have a cosigner for your loan. Some lender specialize in loans for bad credit.
You can check your credit score through various online services, some of which are free. You're can also get free weekly credit reports from each of the major credit bureaus.
No, credit score requirements vary between lenders. Some cater to borrowers with good-to-excellent credit scores, while others are more flexible and consider applicants with lower scores.
The time it takes to improve a credit score varies depending on the specific factors affecting it. Consistent, responsible financial behavior like timely bill payments can improve your score gradually. There is no short-term fix to a low credit score.
Multiple loan applications can lead to several hard inquiries on your credit report. This may negatively impact your credit score.
