• Preston Morris

What Credit Score Do I Need to Get a Personal Loan?

For other types of credit, such as personal loans, student loans and retail credit, you'll likely want to know your FICO® Score 8, which is the score most widely used by lenders.


Is FICO score used for loans?

To evaluate this risk, lenders will often pull a credit report and credit score. The most widely used credit scores are FICO ® Scores. In fact, FICO ® Scores are used by 90% of top lenders, helping lenders make decisions about extending credit and at what terms and rates.

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What is the minimum credit score for a personal loan?


Some personal loans, like loans for bad credit, accept credit scores as low as 600. However, a score at this level won't get you low interest rates or high loan limits. If you're searching for the absolute best loan terms, you'll likely need a score above 670. Before applying, check your credit score and look for ways to improve it. This will help you secure a more favorable loan.


What credit score do I need for a $40,000 loan? In order to qualify for a $40,000 loan, borrowers are generally required to have a credit score of at least 670. A good to excellent credit score not only gives you more options in terms of lenders, but it also improves your chances of approval and gives you access to the most flexible terms and lowest interest rates.


Key statistics

  • The national personal loan debt balance rose from $72 billion in 2015 to $143 billion at the start of 2021.

  • The average personal loan interest rate is currently 10.50.

  • 19.1 million people in the U.S. had unsecured personal loans in 2021.

  • Personal loans only account for 1% of consumer debt overall.

  • The average debt per personal loan borrower is $8,402.

  • Personal loan delinquency rates are over twice as high as delinquency rates for auto loans and mortgages.

Personal loans for fair or bad credit


Though lenders consider a few factors on a loan application, your credit score is often given a lot of weight.


Borrowers with fair or bad credit often qualify for high rates, which can be up to 36%. A low credit score could also be the reason a lender approves you for a low loan amount.

Lenders that offer fair credit loans may look beyond your credit score to make a loan decision. Credit unions, for example, look at a member’s standing with the credit union and other factors on an application.


Loan applications can cause a temporary dip in your score. Pre-qualifying can show you potential loan offers and won’t hurt your credit score. If you don’t qualify for the loan you want, you can boost your chances with a co-signer or by building your credit.

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