Most lenders won’t publish the exact credit score needed to approve you for a personal loan, which makes it hard to know whether it’s even worth applying. The reality is that credit scores for personal loans vary by lender, and your score is only one part of what they look at.
How do I check my credit score?
In the US, your credit score is calculated by three main credit reporting agencies: Equifax, Experian, and TransUnion. Each one may show a slightly different number depending on what information they have.
The easiest way to check your credit score is through AnnualCreditReport.com, the only federally authorized site for free credit reports. You’re entitled to a free report from each bureau once a year.
For your actual score, a lot of banks and credit card providers now show it for free in your online account or app. Credit Karma and Experian’s own apps are also popular free options.
Checking your own score is a soft inquiry, which won’t affect your credit score.
How does my credit score impact my personal loan application?
Your credit score affects three things in particular:
- Whether you get approved
- What interest rate you’re offered
- How much you can borrow
Lenders use it as a quick measure of lending risk. A higher credit score tells them you have a solid track record of repaying debt on time, which makes them more confident lending to you at a lower interest rate. A lower credit score suggests more risk, so lenders either charge a higher interest rate to offset that or decline the application altogether.
Two people can apply for the same loan amount and walk away with very different rates. Over the life of a loan term, that difference in APR can add up to hundreds of dollars, so it’s worth knowing your score before you apply.
What are the minimum credit score requirements for personal loan approval?
Most lenders in the US use FICO scores, which range from 300 to 850. Those ranges are generally categorized as:
| Credit Score Range | Rating |
| 800 and above | Exceptional |
| 740 to 799 | Very Good |
| 670 to 739 | Good |
| 580 to 669 | Fair |
| 579 and below | Poor |
There’s no industry-wide minimum credit score needed, but as a general rule, a score of at least 670 puts you in a strong position with most lenders. The minimum personal loan varies by lender, so it’s worth checking before you apply.
Borrowers with excellent credit or good credit will typically have the widest range of loan options available, along with more competitive rates. Those with fair credit may still qualify, but with fewer choices and higher rates. If you have poor credit, traditional banks are likely to decline your application, though specialist and online lenders may still be able to help.
Traditional banks and credit unions tend to have the strictest requirements. Online lenders are typically more flexible, with some approving borrowers with scores in the 500 range.
How to Get a Personal Loan with Bad Credit
Poor credit doesn’t automatically rule out a personal loan. It does narrow your loan options, but there are still legitimate routes worth exploring.
Apply With a Co-Signer
If someone with stronger credit is willing to co-sign your loan, lenders may approve you on the strength of their credit history. Just be aware that if you miss loan payments, it affects them too.
Consider a Secured Loan
Some lenders offer secured personal loans, where you put up an asset like a car or savings account as collateral. Because lenders have something to fall back on, they’re often more willing to approve borrowers with lower credit scores.
Consider a Smaller Loan
Applying for a smaller loan reduces the risk for the lender, which can improve your chances even if your credit score isn’t in great shape. It can also make it easier to repay the loan on time, which helps build your credit going forward.
Use a Loan Matching Service
Rather than applying to multiple lenders individually and racking up hard credit inquiries on your report, a matching service like Yup Loans connects you with lenders suited to your situation without hurting your credit³.
How to Improve Your Credit Score to Qualify for a Personal Loan
If your score isn’t where you need it to qualify for a loan, the good news is that credit scores aren’t fixed. With some consistent effort, most people can boost their credit meaningfully within a few months.
Pay on Time, Every Time
Loan payments and bill payments are the single biggest factor in your credit score, accounting for around 35% of your FICO score. Even one missed payment can drag your score down, so setting up autopay for at least the minimum amount is worth doing.
Bring Down Your Credit Utilization
Credit utilisation is the percentage of your available credit limit that you’re currently using. Keeping it below 30% is generally recommended, and the lower the better. If you have credit card balances, paying them down can have a quick impact on your score.
Diversify Your Credit Mix
Lenders like to see that you can manage different types of credit responsibly. Having a healthy credit mix of installment loans, credit cards, and other products can help build your credit over time.
Check Your Credit Report for Errors
Mistakes on credit reports are more common than people realize. Check your free report from each credit reporting agency every year, and if you spot anything that looks wrong, you can dispute it directly with the bureau.
Avoid Applying for New Credit Before You Apply for a Loan
Every time you apply for credit, a hard credit inquiry is recorded on your report. Multiple applications in a short period can nudge your score down, so avoid applying for anything new if you’re planning to apply for an installment loan soon. A hard credit inquiry won’t ruin your credit, but it’s worth being mindful of when you’re actively trying to boost your credit.
Keep Old Accounts Open
The length of your credit history matters. Closing old accounts, even ones you don’t use much, can shorten your average account age and lower your score.
Need to qualify for a personal loan fast? Choose Yup Loans!
Yup Loans is a free matching service that connects you with a panel of lenders based on your situation. Whether you have good credit, fair credit, or you’ve been turned down elsewhere, our lenders consider more than just your score when reviewing applications³.
Fill out a short online form, and we’ll get to work finding lenders who can help. The whole process takes around 3 minutes¹ and you’re never obligated to accept an offer. If you are approved, funds can be deposited into your account as soon as the next business day*.