If you’re gearing up for a major expense or want to consolidate high-interest debt, you might consider a personal loan. But you often need a minimum credit score to qualify for a personal loan.
Most lenders use your credit score to determine your interest rate and loan terms. Other factors, like your income and current debt, contribute to your ability to qualify for a loan, but the better your credit score, the better loan terms you’ll usually receive.
What is a credit score?
Your credit score is a number between 300 and 850 that represents your credit history. Personal loan lenders use your credit score to get an idea of how likely you are to repay a loan.
There are several different scoring models that assign credit scores based on the information in your credit report. One of the most commonly-used credit scoring models is the FICO score, developed by the Fair Isaac Corporation. Other companies have different credit scoring models, but most lenders use FICO scores when assessing your loan and credit card applications.
FICO scores are divided into the following credit score ranges:
- Below 580: Poor
- 580 to 669: Fair
- 670 to 739: Good
- 740 to 799: Very Good
- 800 or higher: Exceptional
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Tip: A good, very good, or excellent credit score will make it more likely you qualify for a larger loan and a lower interest rate.
FICO scores and other credit scoring models take several different factors into account when determining your credit score, including:
- Payment history: Whether or not you’ve made previous payments on time. Doing so positively impacts your credit score.
- Credit utilization: How much of your available credit you use. A lower credit utilization can help improve your credit.
- Length of credit history: How long your credit accounts have been active. A longer credit history generally improves your credit.
- Credit mix: If you carry a variety of debt — like credit cards, installment loans, and mortgages — this can boost your credit score.
- New credit inquiries: The number of accounts you’ve applied for recently. Too many credit inquiries in a short period of time can lower your credit score.
Advertiser DisclosureOverview
Lightstream is one of three Credible partner lenders to offer loan amounts up to $100,000, which makes it ideal for financing large expenses like home improvements or weddings. Funds are available as soon as the same day you apply, and you'll have up to 12 years to repay certain types of loans, including home improvement loans, RV loans, and boat loans. There are no origination fees, and rates are low — Lightstream's lowest APR beats SoFi's advertised lowest APR by 1 percentage point. But you'll need good credit to qualify.
Unlike most lenders, Lightstream does not let you prequalify on its site. Nor does it provide a contact phone number next to its customer service hours on its website.
Repayment terms
2 - 12 years, depending on loan purpose
Eligibility
Available in all states except RI and VT
Time to get funds
As soon as the next business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
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Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also is one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
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Discover Personal Loans offers low APRs, repayment terms up to seven years, no origination fees, nationwide availability, and doesn't require your Social Security number to prequalify on its site. You'll need to have an annual income of at least $40,000, and a FICO score 660 or higher, to be eligible. If your credit score is fair or poor, you'll need to go elsewhere, as Discover doesn't allow cosigners.
Funds are available as soon as the next business day after loan approval.
Eligibility
Available in all 50 states
Time to get funds
Funds can be sent as soon as the next business day after acceptance
Loan uses
Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding
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Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
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LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 8%.
Eligibility
Available in all 50 states
Loan uses
Debt consolidation, paying off credit cards
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SoFi stands out for offering no-fee personal loans with competitive rates, high loan amounts, long loan terms, discounts for autopay and direct pay, and funding as soon as the same day. Plus, SoFi prioritizes convenience for existing and potential customers with features like live chat and an easy prequalification process that doesn't require your Social Security number.
The main catch is that you need to qualify for a loan with SoFi, which can be hard to do if you don't have good credit. You also won't be able to apply with a cosigner, since SoFi doesn't accept cosigners; nor does it offer secured personal loans.
Fees
Option to pay an origination fee (up to 6%) in exchange for a lower rate
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
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Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 8.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
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Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, and WV
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Repayment terms
1 to 5 years (2 to 5 years through Credible)
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It’s worth considering a personal loan through Splash if you have good credit (ideally, a FICO score above 700). The platform offers loans from a wide range of lenders, and next-day funding is available. Plus, Splash has a live chat feature so you can get real-time answers without having to wait on hold or for an email. Loans are available up to $100,000 if you apply via Splash’s website.
Rates are competitive, but borrowers with excellent credit may find lower APRs elsewhere. If you need a repayment term longer than five years, you’ll need to look elsewhere as well.
Loan amount
$5,000 - $100,000 (up to $35,000 on Credible)
Eligibility
Available in all states except VT. OH and NM net disbursed amount must be greater than $5,000. MA must be greater than $6,000
Time to get funds
Same day available, typically 1-3 days
Loan uses
Debt consolidation, home improvement, medical expenses, major purchases
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Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Read full reviewOverview
Happy Money has been in operation since 2009 (formerly known as Payoff). It's an option for fair-credit borrowers (plus those with better credit), and notably has a relatively low top-end APR. In other words, you could qualify for a lower rate with Happy Money with fair credit, relative to other lenders that offer fair-credit loans. The company does charge an origination fee on some loans, up to 5%, but that's not as high as some other lenders' origination fees.
You should be prepared to wait a few days to get your money, as funding can take three to five days once approved. And loans aren't available in Massachusetts or Nevada. Happy Money has an A+ rating with the BBB and is ideal for debt consolidation and credit card consolidation loans.
Eligibility
Available in all states except MA, MS, NV, and OH
Time to get funds
As soon as 2 - 5 business days after verification
Loan uses
Debt consolidation and credit card consolidation only
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BHG Money stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher. However, if you have a cosigner that meets these requirements, BHG will consider your application.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 2% and 4%, depending on your financial profile. Loan funds are available within three to 14 days of loan approval. Note that you can't prequalify with BHG.
Fees
Origination fees, late fees
Eligibility
Available in all states except Maryland and Illinois
Loan uses
Debt consolidation, baby (adoption), engagement ring financing, moving (relocation), business, home improvement, special occasion, cosmetic procedures, major purchase, taxes, credit card refinancing, medical expenses, vacation, wedding, other
Read full reviewFees
Origination Fee, $15 Late Fee, $25 NSF Fee
Eligibility
Available in all states except CO, CT, ME, NV, NH, TN, VT, WV, WY, and all U.S. Territories
Time to get funds
Funds typically deposited into your account in 1 business day13
Loan uses
Debt consolidation, credit card refinancing
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OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Read full reviewMinimum credit score for a personal loan
Your credit score — along with your income and debt-to-income ratio (DTI) — impacts your ability to qualify for a personal loan. Your credit score also affects the loan amount and interest rates you’re offered.
Lenders, understandably, want to avoid taking on too much risk. Looking at your credit score when assessing your loan application allows them to get a sense of how likely you are to repay a loan.
The higher your credit score, the more likely you are — from a lender’s perspective — to pay back your loans. That’s because your credit score demonstrates your history of repaying debt. Paying your loans and credit cards off on time helps boost your credit score. On the other hand, falling behind on payments and overextending yourself leads to a lower credit score.
The minimum credit score required for a personal loan depends on the lender. Some are more lenient than others when it comes to lending to borrowers with bad credit. Some lenders require fair credit — a score of at least 580 — to qualify for a loan. But many require a good credit score for a personal loan — generally, a score in the high 600s or above. Fewer lenders offer personal loans for bad-credit borrowers, or those with a credit score below 580.
Learn More: What Is Debt-To-Income Ratio?
Credit score range and personal loans
While different lenders have different eligibility requirements for personal loans, here’s what you might expect when applying for a personal loan based on your credit score:
| Impact on loan application and terms |
---|
| Lenders will generally see you as a very risky borrower. You may struggle to qualify for a loan on your own. |
| You may qualify for a loan, but you’ll probably face higher interest rates and lower loan limits. |
| You’re more likely to qualify for a loan with a decent interest rate and loan limit. |
| You’re more likely to qualify for low interest rates and higher loan limits. |
| Lenders will typically see you as a very low-risk borrower. You’re more likely to qualify for the lowest available interest rates and highest loan limits. |
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Tips to improve your credit score
If you don’t have the credit score needed for a personal loan — or your score is preventing you from getting a low interest rate — you can take steps to improve your credit score. While you usually won’t see your credit score jump overnight, the following strategies can help you raise it over time:
- Pay off your debt on time and in full: Payment history is the biggest factor that affects your credit score. Improve your score by making full payments on time, every time.
- Don’t max out your credit cards: Using all or the majority of your credit limit signals that you may be overextended. Lowering your credit utilization can help raise your credit score.
- Keep old credit cards open: Avoid closing old credit cards, even if they’re paid off. The length of your credit history has a big impact on your credit score, so keeping those long-standing accounts open makes a difference.
- Look for errors on your credit report: Hopefully, your credit report is error-free, but mistakes do happen. Check it for errors at least once per year and before applying for a loan. If you find a mistake, follow the Consumer Financial Protection Bureau’s steps for disputing it.
How to get a personal loan with bad credit
If you aren’t able to wait for your credit score to improve, you may need to get a personal loan for bad credit. While it’s not as easy to get a loan with bad credit, it’s not impossible. In fact, you have several options:
- Secured loans: Secured loans require you to put up collateral — like your house, car, or another valuable asset — in order to qualify. Because they’re less risky for the lender, they tend to have lower interest rates and are usually easier to qualify for.
- Get a cosigner on a loan: If you’re struggling to qualify for a personal loan, you may be able to apply for a loan with a cosigner. A cosigner with good credit can help you qualify for a loan with low interest rates, but their credit, as well as your own, will be on the line if you default.
- Credit-builder loans: Credit-builder loans work “backward.” Instead of receiving your funds upfront, you make monthly payments — which can help you build your credit — before you receive your funds. Look for credit-builder loans at credit unions or smaller community banks.
- Payday alternative loans (PALs): PALs are small loans available to federal credit union members. These short-term loans have repayment periods of up to 6 months and have much lower interest rates than traditional payday loans.
Check Out: How To Build Credit
FAQ
Is it possible to get a personal loan with a 600 credit score?
Yes, you can get a personal loan with a credit score of 600 — which, according to FICO’s scoring model, is considered fair. While a score of 600 is lower than average, meaning lenders likely will consider you a riskier borrower, you may still be able to qualify for some loans. However, options will be limited and you’ll likely face higher interest rates and lower loan limits.
What are the easiest loans to get approved for?
The easiest loans to get approved for are usually those that don’t perform a credit check. But some of these loans — like payday loans, for example — compensate for this by charging extremely high interest rates. Just because you can get approved for a loan doesn’t necessarily mean you can afford it. However, if you have good, very good, or excellent credit, it won’t be as difficult to qualify for more affordable loans.
Can you get a loan with bad credit?
Yes, but your options will be limited. While some lenders do offer loans for bad credit, they tend to have higher fees and interest rates that may make them unaffordable. Alternatively, you can use a cosigner — who has good credit — to apply for a loan with some lenders. Or you could look into a payday alternative loan if you’re a member of a federal credit union.
Meet the expert:
Emily Batdorf
Emily Batdorf is a personal finance expert, specializing in banking, lending, credit cards, and budgeting. Drawing on her scientific background, she's developed a knack for analyzing financial products in the context of different needs. She finds joy in helping readers understand their best options and shuns a one-size-fits-all approach.