The typical minimum credit score needed to qualify for a personal loan is from 540 to 680, according to over three dozen lenders surveyed by NerdWallet.
Credit score requirements for personal loans vary across lenders. Many lenders give preference to borrowers with good or excellent credit (scores of 690 and higher), but some accept borrowers with bad credit (a score below 630).
A high credit score doesn’t guarantee you’ll be approved for a personal loan. Qualifying rests largely on your creditworthiness, which is usually a combination of your credit history and score, in addition to your income and debt. Use the tool below to learn what loan options you may have based on your credit score.
Minimum credit score requirements of top lenders
Take a look at the minimum credit score requirements of several of NerdWallet’s top-rated personal loan lenders.
Lender | Minimum credit score requirement |
|---|---|
560 | |
600 | |
600 | |
600 | |
630 | |
640 | |
660 | |
680 | |
680 | |
None | |
Not disclosed | |
Not disclosed | |
Not disclosed | |
Not disclosed |
» MORE: Compare the best personal loans
While some lenders require you to have a credit score in the mid to high 600s, others accept a score of 600 or lower. You’ll also find that some lenders don’t publicly disclose their minimum credit score requirements or they don’t have a specific requirement when it comes to applicants’ credit scores.
When a lender doesn’t share details about its requirements, it can be hard to gauge whether it would likely approve your loan application. Fortunately, most lenders let you pre-qualify for a personal loan to check your likelihood of getting approved, plus preview key details about your potential loan.
Pre-qualifying for a personal loan typically involves a soft credit check, which does not affect your credit score. However, when you submit a formal loan application, the lender will usually perform a hard credit check, which can cause your credit score to drop a few points.
How your credit score impacts your loan’s rate
Your credit score not only affects whether you qualify for a personal loan, but it also helps determine what annual percentage rate, or APR, you’ll receive.
Your APR represents the cost of your loan and is made up of your loan’s interest rate plus any origination fee your lender charges. The lower your APR, the less expensive your loan is.
You’re more likely to qualify for a loan with a lower APR if you have a good credit score than if you have bad credit. Lenders are more likely to charge a higher origination fee if you have bad credit.
Here are the average rates by credit band that borrowers who pre-qualified with NerdWallet received over the last 90 days:
Borrower credit rating | Score range | Estimated APR |
|---|---|---|
Excellent | 720-850 | 15.06% |
Good | 690-719 | 19.63% |
Fair | 630-689 | 23.87% |
Bad | 300-629 | 27.42% |
Getting a personal loan with fair or bad credit
While it’s possible to get a personal loan with fair or bad credit, you’ll likely receive a rate on the high end of a lender’s range. If your score is below 540, you may not qualify for a loan with an APR below 36% — the highest interest rate an affordable loan can have, according to most consumer advocates.
A low credit score could also be the reason a lender approves you for a smaller loan amount or a shorter repayment term than what you request. Lenders generally view a loan applicant with fair or bad credit as more risky than applicants with good credit scores.
Ways to boost your chances of loan approval
These tips can help you increase your odds of getting a loan with a lower credit score.
Select lenders that cater to applicants with lower credit scores: Check out our recommendations for the best personal loans for fair credit and the best personal loans for bad credit. Local credit unions may also be a good option as they tend to consider factors beyond your credit score to make an approval decision, such as your history as a credit union member.
Apply with a co-signer or co-borrower: Lenders may be more likely to approve you for a co-signed or joint loan, because they can also get loan payments from your co-signer or co-borrower if you’re not able to make payments.
Use collateral to secure a personal loan: A secured personal loan can be easier to qualify for, because the lender can take your collateral — typically a car or savings account — to recoup its losses if you stop making payments.
Tips to build your credit
If you have time to build credit before applying, you may improve your chance of qualifying for a personal loan at a low rate. It’ll likely take a few months for these steps to affect your score, but it may be worth it if it significantly lowers the cost of a loan that you’ll be repaying for a year or more.
1. Make payments on time
Credit card and loan payments that are more than 30 days past due could cause your credit score to drop by about 100 points. Consider setting up automatic payments or due date reminders to ensure you won’t miss payments on your current debts. If you have multiple bills due around the same time and it’s causing you to be late on payments, ask your creditors if you’re able to shift your payment due dates.
2. Dispute credit reporting errors
Review your credit reports from each of the three credit bureaus — Equifax, Experian and TransUnion — to see if there are any errors that may be dragging your score down, like incorrect account balances or accounts you don’t recognize. Dispute any mistakes online, by mail or by phone.
3. Lower your credit utilization
Your credit utilization ratio is the percentage of your available revolving credit that you’re using. Try to keep this number below 30%. If it's higher, take time to pay down your credit card balances and other credit lines. Requesting a credit limit increase can also lower your credit utilization, but first ask if the creditor will perform a hard credit pull before increasing your credit limit. A hard pull can lower your credit score by a few points.
4. Become an authorized user on someone’s credit card
If you know someone with a higher credit score who will let you become an authorized user on their credit card, you can benefit from their good credit habits, such as on-time payments or a low credit utilization. You aren’t responsible for the cardholder’s balance and don’t even need access to the credit card.
Alternatives to personal loans
You may have other ways to borrow money, even if you meet credit score requirements for a personal loan.
Family loans: Getting a loan from a family member or friend requires no credit check and may be interest free. To avoid disputes that can sour the relationship, have both parties sign a loan agreement detailing how the money will be repaid.
Home equity loans: Securing a loan with the equity in your home can give you lower rates than unsecured personal loans, but you risk losing your home if you stop making payments. You’ll typically need at least a fair credit score to qualify.
Buy now, pay later: Many major retailers offer “buy now, pay later” plans that break the cost of a purchase into smaller payments — typically four interest-free biweekly payments. The BNPL company may perform a soft credit check, but you generally don’t need a high credit score to be approved.
Cash advance apps: Apps like Dave and Brigit can approve you for small loans (usually less than $1,000) based on your income and cash flow, rather than your credit score. You’re essentially getting an advance on your upcoming paycheck (with repayment due in full on your next payday), and borrowing can come with fees.ar you.
