Credit score requirements for personal loans vary across lenders. Many give preference to borrowers with good or excellent credit scores (690 and above), but some lenders accept borrowers with bad credit (a score below 630). Show The typical minimum credit score to qualify for a personal loan is 560 to 660, according to lenders surveyed by NerdWallet. Some lenders may require a higher score. A high credit score doesn’t guarantee you’ll qualify or get a low interest rate. Qualifying rests largely on your creditworthiness, which is usually a combination of your credit history and score, in addition to income and debt. Use the calculator below to learn what loan options you may have based on your credit score. See if you pre-qualify for a personal loan – without affecting your credit score What you need to qualify for a personal loanJust because you meet a lender’s minimum credit score requirement doesn’t mean you’ll qualify for a loan. Lenders have a range of criteria they consider on an application. Some lenders look at alternative data, like where you went to college and what field you work in. Others look mostly at your credit report and history, along with your income and debts. Here’s what most lenders look at on a personal loan application:
Personal loans for fair or bad creditThough lenders consider multiple factors on a loan application, your credit score is often given a lot of weight. Borrowers with fair or bad credit often qualify for high rates, which can be up to 36%. A low credit score could also be the reason a lender approves you for a low loan amount. Lenders that offer fair-credit loans may look beyond your credit score to make a loan decision. Credit unions, for example, look at a member’s standing with the credit union and other factors on an application. How to compare personal loansHere are a few factors to consider when deciding between personal loan lenders: Annual percentage rates. The APR is the total cost of the loan with interest and fees. APR provides an apples-to-apples cost comparison across personal loans and other financing options. Pre-qualifying with a soft credit check. Many lenders let you pre-qualify to preview your potential interest rate and monthly payments before applying for a loan. Pre-qualifying won’t affect your credit score and can help you decide which personal loan fits your budget and borrowing needs. Joint loans. Adding a co-borrower to an application can bolster your chances of qualifying for a personal loan. Not all lenders offer joint loans, but adding someone with good credit and strong income can help you get a lower rate or larger loan amount. With a joint loan, your co-borrower is also responsible for payments. Secured loans. Secured loans require borrowers to provide collateral in order to get a loan. The collateral can be money in a savings account, permanent home fixtures or a car, which the lender can take if you don’t repay the loan. Secured loans can help borrowers with low credit scores qualify for a loan or get a better rate than on an unsecured personal loan. Special features. Lenders may offer perks like credit-building assistance, free career coaching, and unemployment or hardship assistance. If you have two affordable loan offers, check for additional benefits that might help you pick which one is the best fit for you. Personal loan calculator: Learn how much your monthly payments could be, based on your loan amount, term and credit score. What credit score do you need to borrow?Generally, borrowers need a credit score of at least 610 to 640 to even qualify for a personal loan. To qualify for a lender's lowest interest rate, borrowers typically need a score of at least 690.
Can I get a loan with a credit score below 600?There are lenders out there willing to offer personal loans to borrowers with a credit score of 600 or below. But with higher interest rates and fees, you may end up paying more for your debt in the long run.
Can I get a loan with a credit score of 580?You'll typically need a score of at least 550 to 580 to qualify for a personal loan. You can find personal loans for bad credit, but: You'll likely pay a higher interest rate than other borrowers. You probably won't qualify for larger loan amounts.
Can I get a loan with credit score of 500?If conventional loans are more for experienced borrowers with credit scores in the Good range, FHA loans are aimed more at first-time homebuyers, especially borrowers with credit scores in the Poor to Fair FICO Score range. Anyone with a minimum credit score of 500 can apply for an FHA loan.
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