What Credit Score Is Needed for a Personal Loan?

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A personal loan typically requires a fair credit score or better to be approved. FICO defines “fair” credit as a score of at least 580.

A low credit score will affect how much you can borrow with a personal loan. Your options will be limited and your interest rates will be high. Your best chance at success is to wait until you’ve got a “good” credit score — 670 or above, which will provide a lower APR and a better choice of lenders.

Here’s the thing, though: A credit score is just one factor that financial institutions weigh when deciding whether to extend a loan to you. Details like income, credit history and current debt are important as well.

Here’s a look at what credit score is needed for a personal loan.

Credit Score Ranges and Loan Options

Your credit score is like a report card that lenders can look at to gauge how risky of a borrower you are. If it’s low, that’s a signal that you may have either limited or blemished credit history.

• Poor credit: 300 to 579. You’ll have a tough time getting approved for any loan with a “poor” credit score.
• Fair credit: 580 to 669. You may be approved for a loan if you have other things going for you, such as steady income and little debt.
• Good credit: 670 to 739. Most loans are likely within your reach, though you may still not receive the most favorable APR.

Any credit score above that often yields the best interest rates. Here’s a more complete overview:

Can You Get a Personal Loan With No Credit?

It’s a big ask: Can you get a personal loan with no credit? Yes, you can — but the pickings will be slim.

Here are your top options:

1. Ask for Help From a Cosigner

Find someone willing to open the loan alongside you, using their robust credit profile to secure an approval. Note tha the cosigner is ultimately responsible for the loan being paid back — so if you default on your loan, you’ll injure your cosigner’s credit.

2. Open a Secured Loan

With no credit, a lender will be reluctant to let you borrow money. Submitting collateral to the bank, like a vehicle or jewelry, can make them more receptive to the idea. If you default on your loan, they can sell your collateral to repay your debt.

3. Try a Credit Builder Loan

These loans are of no value other than to help you create a credit history. If you’re looking to borrow money, a credit builder loan won’t be helpful.

How Lenders Use Credit Scores to Make Decisions

Your credit score helps lenders assess your creditworthiness and plays a role in determining the terms they offer, such as:

• Approval: A high credit score gives lenders confidence that you can repay the loan, so you may be eligible for favorable terms. On the other hand, a low credit score signals higher risk, which could mean less than favorable terms or even deny the loan.
• Interest rate: If you have a low credit score, a bank will charge you more interest. It does this with higher-risk borrowers to compensate for expected losses. Less risky customers tend to get better interest rates.
• Loan term: The amount of time you have to pay off your loan may shorten the lower your credit score is. The bank wants to recoup its money as quickly as possible.

Keep in Mind

There’s more to the story than just your credit score. Lenders will weigh your current debt, the amount of money you can access to pay your bills, your job situation and more.

How To Qualify for a Personal Loan With a Lower Score

To qualify for a personal loan with a lower credit score, it will take some legwork.

Some banks and credit unions will allow you to see if you’re preapproved for a loan. This doesn’t guarantee approval, but it gives you an idea of what might happen, provided all the personal information you entered, such as your income, is correct. Shop around by using these preapproval tools.

You may also target smaller financial institutions, like your local credit union. You’ll receive a more personalized process than with a big bank, giving you a chance to explain your situation. Credit unions are also not-for-profit, which makes a difference in lending.

If you still can’t get a loan, you may need to either open a secured loan, which requires collateral, or find a cosigner with respectable credit.

3 Ways To Improve Your Credit Before Applying

If your credit score is low, do everything in your power to raise it before you apply for a loan. Try these steps to get a personal loan approval:

1. Lower your credit utilization by paying down credit card balances.
2. Continue to make on-time payments with all of your current accounts.
3. Avoid applying for multiple credit cards in a short period of time.

You should also take a peek at your credit report every now and again to make sure there are no errors that could hurt your credit score — they’re more common than you think. If you find one, file a dispute with the credit bureau to have it fixed.

Best Lenders for Different Credit Ranges

Fixed rates from 8.99% APR to 35.49% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount.

SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of April 24, 2025 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors.

Loan amounts range from $5,000- $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

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