What Credit Score Is Needed for a Personal Loan?
Every lender sets its own approval requirements, so there’s no universal minimum credit score needed to get a personal loan. In fact, some lenders don’t have a formal minimum credit score requirement at all.
Alongside credit score, lenders usually use factors like income, debt-to-income ratio and employment stability to determine loan eligibility.
- Credit score is important, but it’s not the only thing that lenders look at. You could qualify with bad credit or get denied with good credit, depending on your financial profile and loan request.
- You may qualify with a lower score, but competitive personal loan rates usually require at least very good credit (740+).
- LendingTree users who qualified for at least one personal loan offer have an average credit score of 653.
What is the minimum credit score requirement for getting a personal loan?
As long as they follow discrimination and lending laws, lenders decide their own personal loan requirements.
For instance, online lender LightStream only accepts good to excellent credit. Lending platform Upstart, on the other hand, doesn’t have a formal minimum credit score requirement at all
The easiest way to see if you’re eligible is to prequalify for a personal loan, which won’t hurt your credit. Still, here’s a quick guide to help you navigate typical lender expectations.
- Bad credit (580 or below) makes it hard to qualify for a loan, but it’s possible. Interest rates will generally be the highest.
- Fair credit (580-669) may qualify for a personal loan, but at higher rates.
- Good credit (670-739) usually unlocks lower rates and larger loan amounts.
- Very good (740-799) or excellent credit (800+) often qualifies for the most competitive rates and fees.
How lenders evaluate borrowers beyond credit score
Lenders approve personal loans based on risk, or in this case, how likely it is that the borrower will default. While lenders do generally use credit score to help predict this risk, they also look at other factors like:
- Income and cash flow: Lenders may ask for pay stubs or tax documents to see that you bring in consistent income. They may also have minimum annual income requirements, though these are rarely public.
- Debt to income ratio (DTI): Income also matters when it comes to debt-to-income ratio. DTI measures how much you already owe compared to how much you make. Lenders usually consider 35% as “good,” but it varies across companies.
- Employment history and job stability: Lenders may pause if you have a spotty employment record. Freelancers or contractors might need to provide extra documents to prove income.
- Recent credit behavior: Certain actions can be a red flag to lenders, like applying for multiple loans or cards in a short period of time. This could be a sign of money troubles.
- Credit history: Those with a long history of positive payments on a variety of credit products (loans, cards, etc.) usually have an easier time borrowing.
- Loan amount and repayment term: Larger, longer loans are harder to qualify for. The bigger the loan, the more the lender stands to lose. Plus, longer-term loans give the borrower more time to fall behind.
Who gets approved and who doesn’t, based on LendingTree data
There’s no such thing as guaranteed approval when it comes to personal loans. If a lender does advertise this, skip it because it may be predatory. Even no-credit-check loans have requirements borrowers must meet.
Using LendingTree marketplace data, we analyzed which borrowers tend to get approved for loans and for how much.
Interestingly, users who qualified for at least one offer and those who didn’t are in the same credit band (fair). This shows how factors like annual income and credit history can impact your odds of qualifying.
| Received at least one offer | Received no offers | |
|---|---|---|
| Credit score | 653 | 598 |
| Self-reported income | $70,551 | $52,217 |
| Requested loan amount | $14,365 | $10,596 |
| Age of oldest account | 11.5 years | 7.6 years |
Lenders often tighten requirements during economic uncertainty
Expect it to be harder to qualify for a personal loan during periods of economic uncertainty or a weakening job market. Lenders usually adjust approval standards based on broader economic conditions.
For example, even borrowers with high income may appear riskier if they work in industries experiencing layoffs. During uncertain periods, some lenders may:
- Raise minimum credit score expectations
- Reduce loan amounts
- Require stronger income verification
- Place more emphasis on employment stability and debt levels
That means the same borrower could receive different loan offers depending on current market conditions.
Average personal loan rates by credit score
Many lenders start approving borrowers at a credit score of about 580, though their annual percentage rates (APRs) will typically be higher. Borrowers with credit scores of 740 or higher tend to qualify for the best rates, based on LendingTree user loan data.
| Credit tier | Average APR |
|---|---|
| Excellent (800 and above) | 15.75% |
| Very good (740-799) | 17.89% |
| Good (670-739) | 23.27% |
| Fair (580-669) | 27.79% |
| Poor (under 580) | 30.25% |
How to improve your approval odds before applying
Whether you have bad credit or no credit, there are things you can do to boost your approval odds.
Pay down credit card debt
Improve your credit score before applying by paying off some of your credit card debt. This will help improve your credit utilization, a credit scoring factor that measures how much available credit you’re using.
Consider a secured loan
Secured personal loans require collateral — usually your car, permanent home fixtures or savings account. If you stop paying your loan, the lender can repossess your collateral and make up some of its losses. This reduces its risk, helping make qualifying easier.
Apply with a co-borrower
A joint loan is a loan with two borrowers. Teaming up with someone who has excellent credit can increase your approval chances, as each of you has equal responsibility to repay the loan. This means that late payments will hurt your co-borrower’s credit as much as they will yours.
Your credit score is based on factors like payment history, credit utilization and account age. Understanding how your score is calculated can help you strengthen your borrowing profile before applying for a personal loan.
If you aren’t sure where you stand, check your credit for free with LendingTree Spring. We’ll also give you personalized tips that may help improve your borrowing profile over time.
Frequently asked questions
Having a good credit score can make it easier to get a personal loan, but it’s not a guarantee. Lenders review more than your credit score when reviewing your application. If you have good credit but the lender finds a different disqualifying factor (a short credit history, for instance), it could deny you.
Yes. Personal loan requirements can shift based on broader economic conditions and lender risk tolerance. During periods of economic uncertainty — such as rising interest rates, inflation or widespread layoffs — some lenders may tighten approval standards or offer higher rates to riskier borrowers.
That means a borrower who qualified easily in one market environment may receive different offers later, even if their credit profile hasn’t changed much.
LendingTree is a loan marketplace, so individual loan credit requirements will vary by lender. Users who qualified for at least one offer had an average credit score of 653. Many lenders on our network consider fair-credit applicants, while others focus on prime-credit borrowers.
You can check loan offers without a hard credit pull, so there’s no risk to your score to explore your borrowing options on LendingTree.
If you’d like to see what the process is like in real life, read a LendingTree writer’s own experience shopping for loans with 15 different lenders and marketplaces — including LendingTree itself.
Get personal loan offers from up to 5 lenders in minutes