What Credit Score Do You Need for a Personal Loan?

Personal loans are one of the most versatile financial tools available — but your credit score determines your rate and whether you qualify. Here is what you need to know.

Minimum Credit Score Requirements

• Excellent credit (720+): Best rates, typically 6-12% APR
• Good credit (680-719): Approved at most lenders, 10-18% APR
• Fair credit (620-679): Fewer options, 18-28% APR
• Poor credit (580-619): Limited options, 28-36% APR
• Bad credit (below 580): Very few lenders, extremely high rates or denial

Options with Bad Credit

Credit unions. Often more flexible than banks for members with fair or poor credit.

Online lenders. Some specialize in bad credit personal loans — but read the fine print carefully.

Secured personal loan. Using collateral reduces lender risk and can get you approved with lower credit.

Co-signer. A creditworthy co-signer dramatically improves approval odds and rates.

Will a Personal Loan Hurt My Credit Score?

Applying creates a hard inquiry (small temporary drop). However, a personal loan can actually help your score long-term by adding a different type of credit (installment loan) to your mix and building payment history.

Before applying for a personal loan with bad credit and high rates, consider whether fixing your credit first would get you a significantly better deal. Get your free CreditGM analysis and we will help you decide the best path forward.