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A personal loan is a flexible way to borrow that can be used for anything from covering the cost of a home repair to consolidating high-interest debt. While there’s no universally required credit score needed for a personal loan, you generally need a score of at least 610 to qualify, and an even higher score to get a lender’s best rates. Some lenders may approve borrowers with a score as low as 580.
Read on for a closer look at what credit score is needed for a personal loan, how your credit score can impact loan amounts and interest rates, plus other factors lenders look at when considering an applicant for a personal loan.
Key Points
• A minimum credit score of 610 is generally required to qualify for a personal loan, with higher scores yielding better interest rates.
• Lenders may offer personal loans without credit checks, but these typically come with higher interest rates.
• Personal loans are versatile, allowing for uses ranging from home repairs to debt consolidation.
• Factors like debt-to-income ratio and income level also significantly influence loan approval and conditions.
• Higher credit scores can access more favorable loan terms, while lower scores may face higher interest rates and limited loan amounts.
How Your Credit Score Affects Personal Loan Eligibility
A credit score is a three-digit number (typically between 300 and 850) designed to predict how likely you are to pay a loan back on time based on information from your credit reports. There is no universally set minimum credit score needed for personal loans but many lenders require applicants to have a minimum score of around 610.
That doesn’t mean borrowers with lower scores or thin credit are out of luck. Some lenders offer personal loans to applicants without any credit history at all. There are also personal loans on the market designed for applicants with poor or bad credit. Keep in mind, though, that these loans often come with high interest rates and less-than-favorable terms.
Interest Rates and Loan Terms
Personal loan interest rates for those with a high credit score are typically lower than for people with weaker scores. To get approved for more favorable rates, you may need a credit score above 670. And some lenders reserve their lowest rates and largest loan amounts for scores of 800 or higher.
Personal loans typically have a repayment term of two to seven years. The interest rate and loan term and your credit score and other qualifying factors come together to determine your monthly loan payment. Each lender will have its own rules, so it’s a good idea to seek out a quote on your desired loan amount and term from multiple lenders.
Loan Amounts
A personal loan enables you to borrow a specific amount of money to use in virtually any way you like — unlike a mortgage or auto loan, which is earmarked for one specific purpose. Personal loans are offered by banks, credit unions, and online lenders and are generally unsecured (meaning you don’t have to pledge an asset to secure the loan). Lenders determine the ceiling for your loan based on the amount you request and internal policies. Each lender will have a ceiling: a maximum amount it is comfortable lending.
Once you get approved for a personal loan of a certain amount, you receive the funds in one lump sum up front, then repay the money (plus interest) in monthly installments over the loan term.
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Other Factors Lenders Consider Beyond Credit Score
These are a few other typical personal loan requirements lenders take into consideration when deciding whether or not to offer you a personal loan, as well as how much to offer and at what rate. Here’s a look at what you may need to show in addition to a credit score for a personal loan.
Debt-to-Income Ratio
Lenders will also look closely at an applicant’s debt-to-income (DTI) ratio, which measures the percentage of a person’s monthly income that goes to debt payments. You generally want your DTI to be as low as possible, because that indicates that your income is well above what you need to cover your monthly expenses.
If you’re applying for a personal loan, lenders typically want to see a DTI of 40% or less. A lender might allow a higher DTI, however, if you have a strong credit score or other compensating factors, like enough money in your savings account to cover several months of living expenses.
Income
To make sure that borrowers have the cash flow to repay a new loan, lenders typically have minimum income requirements for personal loans. Income thresholds vary widely by lender — some require applicants to earn at least $45,000 per year, while others have a minimum annual income requirement of just $20,000. Lenders don’t always disclose their income requirements, so you may not be able to discover these minimums before you apply for a personal loan.
Lenders see your income by looking at your monthly bank statements, last two years of tax returns, and pay stubs. Some lenders also require a signed letter from an employer. If you are self-employed, you can provide tax returns or bank statements to show proof of income.
Credit History
Your credit history is all the details included in your credit report. In addition to looking at your credit score, a lender might consider whether you have any red flags in your history, such as accounts handed to a collection agency, a foreclosure, or a lien or judgment related to unpaid bills. Information flows between lenders and credit agencies, and it’s important to remember that even as your credit affects whether you can get a loan, taking out a personal loan affects your credit, too.
đź’ˇ Quick Tip: With average interest rates lower than credit cards, a personal loan for credit card debt can substantially decrease your monthly bills.
Credit Score Ranges for Personal Loans
When it comes to having the right credit score for personal loans, there is no one set score that disqualifies someone from getting their hands on one, as noted above. That said, having a FICO® Score in the good range (670-739) or higher gives applicants the widest range of lending opportunities and helps borrowers get favorable interest rates.
Take a closer look at how different FICO credit score ranges can affect lending opportunities.
| FICO Credit Score Range | Rating | Lending Opportunities |
|---|---|---|
| 800+ | Exceptional | Wide variety of lending products, favorable interest rates, larger loan amounts |
| 740-799 | Very Good | Wide variety of lending products, favorable interest rates, larger loan amounts |
| 670-739 | Good | Wide variety of lending products, good loan amounts, fair interest rates |
| 580-669 | Fair | Can qualify for some lending products with slightly higher interest rates |
| <580 | Poor | Limited lending opportunities, smaller loan amounts, typically high interest rates |
Exceptional
An exceptional credit score qualifies applicants for the widest variety of personal loan options, the most favorable interest rates, and larger loan amounts.
Very Good
Having a very good credit score qualifies applicants for most if not all of the same rates and lending opportunities as exceptional applicants.
Good
Having a good credit score puts a borrower near or slightly above the average of U.S. consumers, and most lenders consider this a good score to have. Applicants shouldn’t struggle to find a personal loan, but they may not be approved for the lowest interest rates.
Fair
A fair credit score is below the average score of U.S. consumers. Many lenders will approve loans with this score, but rates and terms might not be as desirable as they are for higher scores.
Poor
A poor or “bad” credit score is well below the average score of U.S. consumers and demonstrates to lenders that the applicant may be a lending risk, which greatly limits the applicant’s borrowing options. If they do qualify for a personal loan they likely can expect to be approved at high interest rates.
Recommended: How a Personal Loan Can Boost Your Credit Score
Alternatives to Personal Loans
If your credit score makes it difficult to qualify for a personal loan, you may want to explore alternative lending options. Here are some to consider.
• Credit card cash advance: Consumers with credit cards may be able to request a cash advance from their credit card, which can make it easy to get access to cash quickly. These cash advances typically come with higher interest rates than a regular credit card purchase.
• Peer-to-peer loans: There are some web-based lending sites that offer some flexibility in qualification requirements. Since these sites are not lenders, and more like matchmakers, they may help you find an investor who is willing to look at other factors besides your credit score.
• Cross-collateral loans: If you already have a loan secured by collateral with a lender (such as auto loan or mortgage), you may be able to qualify for another loan with the same lender using that same collateral. However, not all lenders allow cross-collateral loans. And there are risks involved for borrowers. To have a lien released from the asset used as collateral, you typically need to pay both loans in full.
Personal Loan Rates From SoFi
The average personal loan interest rate, as noted above, will depend on several factors. SoFi makes personal loans of up to $100,000 with repayment terms of two to seven years. The fixed interest rate a borrower qualifies for will depend on their credit score and other details. No-fee loan options are available, though some borrowers choose to pay a one-time fee to obtain a lower interest rate.
The Takeaway
What credit score is needed for a personal loan will depend on the borrower’s needs and qualifications and the lender’s guidelines. Some lenders may allow a borrower to qualify for a personal loan with a credit score as low as 580, but generally speaking, you’ll need a minimum score of 610 to qualify for a personal loan with most lenders. And a credit score of 670 or better can help you obtain a better interest rate.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.
FAQ
Is a different credit score required for loans of different sizes?
Generally, the higher your credit score, the larger the loan you can qualify for. Maximum amounts for personal loans range from $500 to $100,000. If you have strong credit, you may qualify for a larger loan than you need. Be sure to consider how much you can afford to repay each month before deciding what size loan to take out.
Can you get a personal loan without having a credit score at all?
There are some personal loans on the market with no credit check. Since the lender can’t rely on your credit history, they will typically focus on other indicators of your ability to pay back the loan, such as your income, employment history, rental history, and any previous history with the lender.
When applying for a personal loan with no credit check, you’ll want to carefully weigh the benefits against the costs. Lenders will often charge higher interest rates and impose more fees to lessen their risk.
Can getting a personal loan affect a credit score?
Getting a personal loan can affect credit scores both positively and negatively. Applying for a personal loan typically results in a hard credit inquiry, which may cause a small, temporary drop in your credit score. On the flip side, taking out a personal loan can have a positive impact on your credit by increasing your credit mix. Making on-time payments can also improve your credit profile. (Late payments, however, can have a negative impact on your credit.)
What credit score do you need to get the best personal loan rates?
The best personal loan interest rates are typically reserved for borrowers with a credit score of 800 or better, which is considered an exceptional score. (The average credit score in the U.S. in early 2026 was 713.)
What is the minimum credit score for a SoFi personal loan?
The minimum credit score SoFi will accept for a personal loan will depend on the loan amount requested and the borrower’s credit history and debts. It would not be unusual to need a score of 620 to qualify for a loan of $3,000, for example.
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