What Credit Score Is Needed for a Personal Loan?

Most lenders require a minimum credit score between 580 and 670 to approve a personal loan application. The exact credit score needed for a personal loan varies significantly from one lender to the next.

Some lenders, like Upstart and Avant, approve borrowers with FICO scores as low as 580. Others, like SoFi, require a minimum of 600. Banks and credit unions typically prefer scores of 670 or higher.

The higher your credit score, the better your chances of approval and the lower your interest rate. But your credit score is just one piece of the puzzle. Lenders also look at your income, debt-to-income ratio, employment history, and overall credit report when deciding what credit score is needed for a personal loan approval.

Your FICO credit score falls into one of five categories. Each range affects your personal loan options differently:

• Exceptional (800-850): You qualify for the lowest rates available. Lenders compete for your business. Expect APRs starting around 6% to 10%.
• Very Good (740-799): You still get excellent rates and easy approval. APRs typically range from 8% to 14%.
• Good (670-739): This is generally considered a good credit score to get a loan with favorable terms. Most lenders approve you without issues and this is the sweet spot where you have plenty of options. Average APRs fall between 12% and 18%.
• Fair (580-669): You can still get approved, but with higher rates. Expect APRs between 18% and 28%. Fewer lenders will work with you.
• Poor (300-579): Traditional personal loans become difficult to get. You may need to consider secured loans, bad credit loans, or adding a co-signer.

Keep in mind that these are general ranges. Individual lenders set their own thresholds, and some specialize in serving borrowers with lower scores.

Your credit score has a direct impact on the interest rate you pay. Here is what borrowers typically see as of 2026:

• Excellent credit (720+): 6.49% to 12% APR
• Good credit (690-719): 10% to 17% APR
• Fair credit (580-689): 17% to 28% APR
• Poor credit (below 580): 28% to 36% APR

The average personal loan interest rate in early 2026 is around 12.26%, according to Bankrate. That number is pulled down by borrowers with strong credit. If your score is below 670, expect to pay well above that average.

Even a small improvement in your credit score can save you hundreds or thousands of dollars in interest over the life of a loan. For example, on a $10,000 loan with a 3-year term, the difference between a 12% APR and a 24% APR is roughly $2,000 in total interest.

Different lenders have different minimum score requirements. Here is a snapshot of what some popular personal loan providers look for:

• Upstart: No minimum credit score (uses alternative data like education and employment)
• Avant: 580 minimum FICO score
• OneMain Financial: No strict minimum (accepts low scores with collateral)
• Prosper: 560 minimum FICO score
• LendingClub: 600 minimum FICO score
• Best Egg: 640 minimum FICO score
• SoFi: 600 minimum FICO score
• Discover: 660 minimum FICO score
• Wells Fargo: 660+ recommended
• Marcus by Goldman Sachs: 660 minimum FICO score

These numbers can change, so always check with the lender directly. Many lenders let you pre-qualify online to see your estimated rate without hurting your score.

Yes, you can get a personal loan with bad credit, but your options are more limited and the costs are higher.

Lenders like Upstart, Avant, and OneMain Financial specialize in working with borrowers who have credit scores below 600. If your personal loan credit score is 550 or lower, you still have options, though interest rates will be at the higher end. Some online lenders use alternative data points beyond your credit score, including income stability, education, and job history, to evaluate your application.

Here are a few strategies if your credit score is low:

• Apply with a co-signer. A co-signer with good credit can significantly improve your approval odds and help you get a lower rate.
• Offer collateral. Secured personal loans use an asset (like a car or savings account) as backing. This reduces the lender's risk and makes approval easier.
• Try a credit union. Credit unions are often more flexible than banks and may offer lower rates to members with less-than-perfect credit.
• Consider smaller loan amounts. You are more likely to get approved for a smaller loan, and it is easier to manage the repayment.
• Look into bad credit loan options. Some lenders are specifically designed for borrowers with poor credit histories.

If your credit score is not where you want it, take some time to improve it before applying. Even a few months of effort can make a real difference.

• Pay all bills on time. Payment history makes up 35% of your FICO score. Even one late payment can drop your score significantly.
• Pay down credit card balances. Your credit utilization ratio (how much of your available credit you are using) accounts for 30% of your score. Try to get below 30%, and ideally below 10%.
• Do not close old accounts. The length of your credit history matters. Keeping older accounts open helps your score.
• Check your credit report for errors. Mistakes happen. You can get free credit reports from AnnualCreditReport.com and dispute any inaccuracies with the credit bureaus (Equifax, Experian, TransUnion).
• Avoid opening new credit accounts. Each new application generates a hard inquiry, which can lower your score temporarily.
• Become an authorized user. If a family member has a credit card with a long, positive history, being added as an authorized user can boost your score.

Most credit score improvements take 30 to 90 days to show up, so plan ahead before submitting your loan application.

Your credit score gets the most attention, but lenders evaluate several other factors when reviewing your personal loan application:

• Income and employment: Lenders want to see stable income that is sufficient to cover your monthly payments. Some set minimum income requirements (often $20,000 to $45,000 per year).
• Debt-to-income ratio (DTI): This is your total monthly debt payments divided by your gross monthly income. Most lenders prefer a DTI ratio below 36%, though some accept up to 50%.
• Credit history length: A longer credit history gives lenders more data to work with and generally works in your favor.
• Recent credit inquiries: Multiple hard inquiries in a short period can signal financial distress to lenders.
• Loan purpose: Some lenders restrict what you can use a personal loan for. Debt consolidation and home improvement are generally well-received.
• Existing relationship: If you already have a checking or savings account with a bank, you may qualify for a relationship discount or easier approval.

Applying for and taking out a personal loan impacts your credit score in several ways:

• Hard inquiry (short-term dip): When you formally apply, the lender runs a hard credit check. This can lower your score by 5 to 10 points temporarily.
• New account (short-term dip): Opening a new credit account lowers your average account age, which can slightly reduce your score.
• Payment history (long-term boost): Making on-time payments every month builds positive payment history, the single biggest factor in your FICO score.
• Credit mix (potential boost): Adding an installment loan to a credit profile that only has credit cards can improve your credit mix, which accounts for 10% of your score.
• Lower utilization (potential boost): If you use a personal loan to pay off credit card debt, your credit utilization drops, which can significantly improve your score.

The initial dip from the hard inquiry and new account is usually small and temporary. Consistent on-time payments over the life of the loan typically result in a net positive effect on your credit score.