What Credit Score Do I Need for a Personal Loan?
Credit scores impact factors like borrowing limits and interest rates
Partner Disclosures
TrustPilot Trust Score = 4.6* *Trustpilot TrustScore as of April 2025. Best Egg loans are personal loans made by Cross River Bank, a New Jersey Chartered Bank, Member FDIC, Equal Housing Lender, or Column N.A., Member FDIC, Equal Housing Lender. The term, amount, and APR of any loan we offer to you will depend on your credit score, income, debt payment obligations, loan amount, credit history and other factors. Your loan agreement will contain specific terms and conditions. About half of our customers get their money the next day. After successful verification, your money can be deposited in your bank account within 1-3 business days. The timing of available funds upon loan approval may vary depending upon your bank’s policies. Loan amounts range from $2,000– $50,000. Residents of Massachusetts have a minimum loan amount of $6,500; Ohio, $5,001; and Georgia, $3,001. For a second Best Egg loan, your total existing Best Egg loan balances cannot exceed $100,000. Annual Percentage Rates (APRs) range from 6.99%–35.99%. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0.99%– 9.99% of your loan amount, which will be deducted from any loan proceeds you receive. The origination fee on a loan term 4-years or longer will be at least 4.99%. Your loan term will impact your APR, which may be higher than our lowest advertised rate. Eligibility for the best available rate subject to creditworthiness. For example: a 5‐year $10,000 loan with 9.99% APR has 60 scheduled monthly payments of $201.81, and a 3‐year $5,000 loan with 7.99% APR has 36 scheduled monthly payments of $155.12. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents. Best Egg products are not available if you live in Iowa,Vermont, West Virginia, the District of Columbia, or U.S. Territories. TO REPORT A PROBLEM OR COMPLAINT WITH THIS LENDER, YOU MAY WRITE OR CALL– Operations Manager, Email: crt-resolutions@bestegg.com, Address: P.O. Box 42912, Philadelphia, PA 19101, Phone: 1-855-282-6353. This lender is licensed and regulated by the New Mexico Regulation and Licensing Department, Financial Institutions Division, P.O. Box 25101, 2550 Cerrillos Road, Santa Fe, New Mexico 87504. To report any unresolved problems or complaints, contact the division by telephone at (505) 476-4885 or visit the website https://www.rld.nm.gov/financial-institutions/
Partner Disclosures
Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 8.99% APR with a term of 5 years would result in 60 monthly payments of $207.54. Truist Bank is an Equal Housing Lender. © 2023 Truist Financial Corporation. Truist, LightStream, and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.
Partner Disclosures
The full range of available rates varies by state. A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 21.58% and a 9.84% origination fee of $984, for an APR of 26.82%. In this example, the borrower will receive $9016 and will make 60 monthly payments of $275. APR is calculated based on 5-year rates offered in December 2023. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved. While most loans through Upstart are unsecured, certain lenders may place a lien on other accounts you hold with the same institution. There may be an option to secure your personal loan through Upstart with your vehicle, which will require a lien to be placed on the vehicle. It is important to review your promissory note for these details before accepting your loan.
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Your credit score is one of the biggest factors lenders consider when approving a loan. While good or excellent credit can open the door to the broadest possible list of loans, fair credit or poor credit means you’ll have limited borrowing options, or you may not get approved at all.
How much you can borrow, the interest rates you’ll pay and potential loan fees are all influenced by your credit score. As such, if you have a low score and don’t need financing in a hurry, you’ll want to improve your credit score before seeking a personal loan.
Each lender has its own specific credit score minimum requirements.
Jump to insightYour credit score impacts your loan approvals, loan fees and interest rates.
Jump to insightTaking time to improve your credit score before you borrow can yield significant savings.
Jump to insightTypical credit scores of approved personal loan borrowers
Here’s a look at the most recent industry data on average and median credit scores for borrowers approved for mortgages, plus what it means for different risk profiles:
- Average U.S. credit score: As of early 2025, the national average FICO score sits around 715, according to FICO’s Credit Insights report.
- Median FICO for mortgage originations: According to Ginnie Mae data, as of February 2025, the median FICO score for all agency-backed loans was 739.
- Credit trend for borrower risk: According to the CFPB, originations continue across a range of credit profiles — from deep subprime (below 580) up through super-prime (720-plus).
- Tightening credit conditions: The Urban Institute reports that despite looser lending in debt-to-income (DTI) and loan-to-value (LTV) ratios, credit score standards have actually tightened, with the median origination FICO rising from 742 in 2021 to 749 in 2025.
While the average U.S. credit score is in the “good” 700s, most approved mortgage borrowers are clustered around the upper 700s, particularly for agency loans. If your score is well below that, expect fewer options or higher rates. Conversely, a strong credit profile (near or above 739 to 749) may give you the best access to favorable mortgage terms.
What is the minimum credit score to get a personal loan?
There’s no one-size-fits-all credit score for personal loans. Each lender sets its own standards. But many lenders now require about 580 FICO as a minimum.
Upstart reports its APR range for personal loans starts at 6.5% and goes up to 35.99%, even while underwriting scores as low as 620, per its published guidelines. Avant is another option that works with lower scores. Many sources say it lends to people with credit as low as 550 to 580. Lenders like LightStream typically favor “good-to-excellent” profiles, or roughly 660 to 670-plus, according to comparison sites.
Here’s FICOs list of credit ranges updated for 2025:
- Exceptional: 800-plus
- Very good: 740 to 799
- Good: 670 to 739
- Fair: 580 to 669
- Poor/subprime: Below 580
If your score is in the fair or better tiers, you have a shot at a personal loan — just expect higher rates unless you shop around or improve credit.
» MORE: What is a good credit score?
Loan factors affected by credit score
Your credit score can determine which lenders might approve you for a loan, but that’s not all. Other borrowing factors can also be heavily influenced by your creditworthiness.
Borrowing limits
Even if your income is high, your credit score can influence how much money you can access with a personal loan. The exact borrowing limits vary across lenders, and some may offer more (or less) insight into how they calculate borrowing limits.As an example, Upstart says in its fine print that the amount you can borrow will be determined based on your credit, income and other information in your loan application, but “not all applicants will qualify for the full amount.”
Repayment terms
Your credit score can also influence the repayment terms you’re offered, meaning the timeline over which you must pay the money back. Where having a good or excellent credit score can mean qualifying for a longer repayment period or more options overall, fair credit and bad credit can limit your options dramatically.Also note that additional factors can influence the repayment term you’re offered, including your income, other debt obligations, the amount borrowed and more.
Loan fees
Individuals with good or excellent credit are most likely to qualify for personal loans with no origination fees. Everyone else will need to choose among lenders that charge these upfront fees — which can be high if your credit isn't great.For example, Upstart targets consumers with fair or poor credit, and its loan products can come with origination fees that equal up to 12% of the loan amount.
Interest rates
Your credit score will affect the interest rate you’ll pay on all types of loans. The higher your score, the lower the interest rates you’re typically offered. The opposite is also true.Lenders are fairly transparent about this fact since most publish a range of interest rates with some wording on how the rate you’re offered will be based on your creditworthiness. Some lenders even list specific information on the type of borrower that can qualify for their lowest rates.
For example, Best Egg’s fine print says you need a minimum FICO score of 700 and at least $100,000 in annual income to qualify for its lowest advertised interest rates.
Other factors that affect personal loan approvals
Your credit score will impact whether you're approved for a personal loan, as well as which lenders will even give you a chance. But it’s not the only criterion. Additional factors that can impact your ability to qualify for a personal loan include:
- Debt-to-income ratio: Your debt-to-income (DTI) ratio shows how much you owe in regular bills compared to your income. Generally speaking, lenders like to see a debt-to-income ratio of about 40% or less before approving you for a personal loan.
- Income: Your income will also determine how much you can borrow, or if you can even qualify for a personal loan in the first place. Some lenders publish minimum income requirements for their loan products.
How to improve your credit score for better loan terms
Having imperfect credit when you apply for a personal loan means fewer lenders to choose from, higher interest rates and the potential for more loan fees. That’s why, if possible, you should strive to improve your credit score before you borrow money. The following steps can help you give your score a much-needed boost.
Look over your credit reports regularly
According to accredited financial counselor Monique White, errors on your credit reports can severely damage your credit. To find errors and get them fixed, review your credit reports several times per year. You can do this for free on AnnualCreditReport.com.
Make all bill payments early or on time
Paying all your bills on time can play a huge role in boosting your credit, particularly since your payment history makes up 35% of your FICO score. Be sure to pay the full amount due each month. “If you have a mortgage, a partial payment doesn’t count — you have to make the full monthly payment for it to count as paid on time,” said White.
Pay down existing debt
The amount you owe to debtors in relation to your available credit limits is known as your credit utilization. Since this factor makes up another 30% of FICO scores, you can help yourself by paying down existing debt. Most experts recommend keeping your credit utilization ratio below 30%.
Utilize all your bills and expenses
Finally, White recommends making sure all your bills are being reported to your credit history, including subscription services and utility bills. This opportunity can either be made available through your landlord or through programs like Experian Boost to get credit for regular bills you pay.
» MORE: How to check your credit score
Secured vs. unsecured personal loans
When considering a personal loan, it’s important to understand the difference between secured and unsecured loans. A secured loan is backed by collateral, such as a car, savings account or home equity. Because the lender can claim the collateral if you default, these loans often have lower interest rates and higher borrowing limits. For example, a borrower using a car as collateral might secure a $15,000 loan at a 7% APR.
In contrast, an unsecured personal loan requires no collateral but relies entirely on your creditworthiness. Interest rates are typically higher, reflecting the lender’s greater risk. A borrower with a strong credit profile could still secure an unsecured $10,000 loan at 12% APR. Unsecured loans are generally quicker to fund and don’t put personal assets at risk, making them ideal for borrowers seeking convenience and flexibility.
FAQ
How do credit score requirements differ between banks, credit unions and online lenders?
Banks, credit unions and online lenders each have different thresholds. Traditional banks often require higher scores, while online lenders and fintechs may approve borrowers with lower scores but at higher interest rates.
What credit score is needed for the best personal loan rates?
To secure the lowest interest rates, aim for a FICO score of 740 or higher. Borrowers in this range are considered “very good” or “exceptional” and are more likely to qualify for favorable loan terms.
Can I get a personal loan with poor credit?
You can get a personal loan with poor credit, but the lenders willing to approve you are limited. You’ll also pay higher interest rates and loan fees, and you may qualify for a lower loan amount than you want.
Should I improve my credit score before applying for a personal loan?
Yes, you should improve your credit before applying to a personal loan. Having a strong credit score increases your likelihood of qualifying for and getting approved for loans, especially in what many refer to as a “credit crunch.” Your credit can impact how much you pay for home loans, car loans and other loans.
Do lenders look at my FICO or Vantage credit score?
Lenders can use either FICO scores or VantageScore credit scores when approving applicants for a loan.
Bottom line
There may be no such thing as a minimum credit score for all personal loans, but you will absolutely want the best credit you can have before you apply. After all, having good or at least decent credit makes it easier to compare offers across a larger number of lenders. Good credit can also mean paying lower interest rates and loan fees (or even no loan fees), which will make borrowing less expensive overall.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- FICO, “Investor Relations.” Accessed Nov. 17, 2025.
- GinnieMae, “Global Markets Analysis Report.” Accessed Nov. 17, 2025.
- Urban Institute, “Housing Finance at a Glance.” Accessed Nov. 17, 2025.
- LightStream, “Frequently asked questions.” Accessed Nov. 17, 2025.
- Avant, “How to Get a Personal Loan.” Accessed Nov. 17, 2025.
- FICO, “What Is a Credit Score?” Accessed Nov. 17, 2025.
- Discover, “What is Debt-to-Income Ratio?” Accessed Nov. 17, 2025.
- FICO, “What's in my FICO Scores?” Accessed Nov. 17, 2025.
