What Credit Score Do You Need for a Personal Loan?
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How your credit score impacts your personal loan offer
Borrower credit rating | Score range | Estimated APR |
---|---|---|
Excellent | 720-850. | 13.31%. |
Good | 690-719. | 16.48%. |
Fair | 630-689. | 20.23%. |
Bad | 300-629. | 20.62%. |
Getting a personal loan with fair or bad credit
Tips to build your credit
1. Make payments on time
2. Dispute credit reporting errors
3. Lower your credit utilization
5. Get a credit-builder loan or secured credit card

at Self
Requirements for a personal loan beyond credit score
- Credit history: Lenders like to see a long credit history on a loan application. A lender may say it requires a minimum of two or three years of credit history, but longer is typically better. More accounts throughout your credit history show a lender how diligently you’ve made payments. Borrowers with multiple credit cards, a mortgage, or an auto loan showing regular on-time payments may be more likely to qualify.
- Income: Lenders may ask for copies of your pay stubs, bank statements or tax documents to ensure you have a steady source of income. Some lenders have specific income requirements, while others just want to know you’re bringing in enough money to repay your personal loan.
- Debt-to-income ratio: Lenders seek borrowers who make enough money to meet their current monthly financial obligations, plus loan payments. Many use your debt-to-income ratio to see whether another loan would overextend your finances.
- Free cash flow: Your debt-to-income ratio doesn’t account for expenses like gas, groceries and rent, so some lenders look at bank account transactions to see how much money borrowers have left after other expenses. Lenders call this “free cash flow,” and the more of it you have, the more confident a lender may feel approving your application.
Alternatives to personal loans
Can I get a personal loan with a 500 credit score?
Many lenders require borrowers to have credit scores above 500, but you may be able to qualify with a co-borrower or by putting down collateral. Several lenders let you pre-qualify with a soft credit check, which allows you to test your likelihood of loan approval without a ding to your credit.
What is considered a good credit score?
Credit score ranges vary, but a good credit score is typically one that falls within the mid 600s to the mid 700s.
Article sources
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