What Credit Score Do You Need for a Personal Loan?

You've got a lender's application open in one tab and your credit score in another, stuck on one question: Is the number high enough?

The worry is reasonable. Your score helps decide whether you're approved and what the loan costs, so checking before you apply is a smart move.

You often don’t need to risk your score to find out whether you might be eligible for a personal loan. And if you’re still worried, a few targeted moves could strengthen your position before you ever fill out an application.

What's the minimum credit score for a personal loan?

There's no universal minimum credit score for a personal loan, because lenders set their own requirements. Many look for at least fair-range credit, around 580 FICO Score or higher. A score of 670 or higher tends to open more lenders and better pricing, and 740 or higher typically reaches the most competitive rates. 

Lenders generally treat a score of 619 or below as higher risk, a tier the Consumer Financial Protection Bureau calls subprime. That doesn't rule you out. It mostly shapes the rate and the size of the loan you're offered. 

Here's how the common FICO ranges line up with what you might expect:

Treat the table as a guide, not a gate. Your score sets your starting point, and the rest of how to get a personal loan comes down to income, debt-to-income ratio, and the other factors covered next.

Which credit score do lenders use: FICO vs. VantageScore?

You don't have one credit score. You have several, and the number a lender sees may not match the one in your banking or score tracking app.

Most personal loan lenders look at a FICO Score, though some use a VantageScore instead, and a few weigh extra data points alongside it. 

Your numbers differ from app to app for two reasons:

• Scoring models calculate a little differently, so a FICO Score and a VantageScore can land a few points apart. Each company has multiple models that also weigh factors differently.
• The three bureaus (Equifax, Experian, and TransUnion) may hold slightly different information, so the same model can produce different numbers.

For context, a VantageScore in the Prime range runs from 661 to 780.  The practical move is simple: Use your credit scores as a guide, not a hard line in the sand.

How your credit score affects your rate, loan amount, and terms

Lenders price loans by risk, and your score is one way lenders gauge how risky you might be as a borrower.

Your score could influence several things at once:

• Interest rate. A higher score tends to earn a lower APR.
• Loan amount. Stronger credit can often support a larger loan.
• Fees. Origination fees generally range from 0% to 12% of the loan amount. When a fee applies, it comes out of the money you receive before it hits your account. 

Actual rates move with your credit, income, lender, and the wider market, so any single quote is a snapshot. To see where they sit right now, compare current personal loan rates before you commit. 

Other factors lenders consider besides your credit score

Your score opens the conversation. These factors decide the rest of it.

• Income. Lenders want proof you can repay, usually through pay stubs, bank statements, or tax returns.
• Employment. A steady work history signals reliable income.
• Debt-to-income ratio. Your DTI is all your monthly debt payments divided by your gross monthly income, and housing costs count as part of that debt. A lower DTI could help offset a lower credit score.
• Credit history. A longer record of on-time payments carries weight beyond the score itself.
• Repayment term. Personal loan terms typically run two to seven years, though some lenders offer shorter or longer. 

Some online lenders also weigh education and employment data alongside credit.  One number you'll hear a lot is 43% DTI. It's a widely used benchmark, not a universal cap, so a higher ratio doesn't automatically mean no.

Can you get a personal loan with bad or fair credit?

Yes. A lower score could limit your lender options or make approval more challenging, and the loan will likely be more expensive—but the options are real. 

A few paths could improve your chances of getting a yes:

• A secured loan. Most personal loans are unsecured, but secured options let you back the loan with collateral (something of value you own), which could ease approval. 
• A cosigner or joint applicant. A creditworthy partner could strengthen your application, though availability varies by lender. 
• A credit union. Some offer small-dollar alternatives built for members with thinner or rougher credit.
• Lenders that serve lower scores. Some lenders specialize in fair-credit borrowers.

When you compare offers, weigh the rate and fees together by comparing the APR (annual percentage rate). The APR includes the interest and most lender fees. The best personal loans for bad credit lay both out before you apply.

One category to skip: payday and no-credit-check loans. Their costs sit far above 36% APR, the ceiling the National Consumer Law Center treats as affordable. Treat these products as ones to avoid, not a backup plan.

How to check and strengthen your score before you apply

Start by pulling your credit free at AnnualCreditReport.com, the only federally authorized source for free reports from all three bureaus, which also offer free weekly reports  Check each report and dispute anything inaccurate.

If your score isn't where you want it, three habits move it the most:

• Pay every bill on time. Payment history is the single biggest factor in your score. 
• Keep your credit utilization at or below 30% of your limits. 
• Limit new applications so you avoid stacking hard inquiries.

Give it honest time. Only steady habits and time repair accurate marks on your report, and no company can speed that up for a fee.  

When you’re ready to explore loan options, use pre-qualification to check your potential rates. Pre-qualification uses a soft inquiry that won’t impact your credit score. Only apply for a personal loan when you’ve chosen a lender so you only have to apply once. A formal application uses a hard inquiry, which can lower your score by a few points for a short time.

Bills Action Plan

1. Pull your credit report free at AnnualCreditReport.com, and dispute any errors you find. Check your free credit score to see which range you fall under.
2. Prequalify with a few lenders to compare real rates. It's a soft inquiry, so it won't affect your score.
3. If your score is lower than you'd like, pay down card balances and keep every payment on time before you apply.

Key Terms

APR: The yearly cost of borrowing. It includes the interest rate plus certain fees, and it's higher than the interest rate alone.

Credit utilization: How much of your available credit you're using. Lower is better, and at or below 30% is a common guide.

Debt-to-income ratio (DTI): Your monthly debt payments divided by your gross monthly income, with housing counted as part of the debt.

Hard vs. soft inquiry: A soft inquiry, like prequalifying or checking your own score, doesn't affect your score. A hard inquiry, like a formal application, can lower it a few points for a short time.

Secured loan: A loan backed by collateral, such as cash savings or a vehicle, which can be easier to get with a lower score. This content is for general education and is not financial advice. Loan terms and approval depend on your individual circumstances and each lender's requirements. Consider speaking with a qualified financial professional about your situation.