Qualifying
What credit score do you need for a personal loan?
Most lenders require a minimum FICO score in the fair-to-good range — roughly 580 to 670 — to approve a personal loan, though the best rates typically go to borrowers with scores of 720 or higher. There is no single federal minimum; each lender sets its own threshold.
The full picture
No universal minimum — here's the practical range
There is no federally mandated minimum credit score for personal loans — lenders set their own standards. In practice, most lenders publishing minimum requirements start around 580 (the low end of the FICO "fair" range of 580–669). Borrowers in the "good" range (670–739) or above typically see lower APRs and access to larger loan amounts. Sub-580 scores are not automatically disqualifying at every lender, but rates will be significantly higher.
How your score affects APR — not just approval
Lenders use risk-based pricing: the higher your score, the lower the interest rate offered. The Federal Reserve's G.19 report tracks the average 24-month personal loan rate at commercial banks (FRED series TERMCBPER24NS). Borrowers with scores in the 760–850 range may qualify for rates near the low end of the market, while borrowers in the 580–620 range can expect rates well above the average — sometimes exceeding 25–30% APR depending on the lender.
Other factors lenders consider
Credit score is one input, not the whole picture. Lenders also evaluate income and employment stability, existing debt obligations (your debt-to-income ratio), the purpose of the loan, and whether the loan is secured or unsecured. A strong income profile can sometimes offset a mid-range credit score, particularly at credit unions, community banks, and branch-based installment lenders that use manual underwriting — see who qualifies with Mariner Finance for an example of that model.
- 580–669 (Fair) — approval possible at many lenders; expect higher APRs and lower loan limits.
- 670–739 (Good) — competitive approval odds; rates near or below average market rates.
- 740–799 (Very Good) — strong approval odds; access to lower-rate offers and larger amounts.
- 800+ (Exceptional) — best available rates; lenders compete for your business.
For a fuller breakdown of typical APR ranges, loan amounts, and lender considerations at each tier, see ClearValue's personal loan credit score guides — including the 700–739 'Good' credit tier, where most borrowers land.
The numbers
- FICO score ranges: 580–669 = Fair, 670–739 = Good, 740–799 = Very Good, 800+ = Exceptional. Most lenders use FICO as their primary scoring model. — myFICO
- The Federal Reserve's G.19 report publishes the average finance rate on 24-month personal loans at commercial banks. — Federal Reserve / FRED
- Higher credit scores typically make it easier to qualify for a loan and may help secure better terms, including lower interest rates. — CFPB
Key takeaways
- No federal minimum exists — most lenders start approving personal loans around a 580 FICO score.
- Scores of 670 and above typically unlock near-average market rates; 740+ yields the best offers.
- Credit score determines not just approval but the APR you're offered — even a 50-point difference can shift your rate meaningfully.
- Income, debt-to-income ratio, and employment history all factor into the decision alongside your credit score.
Frequently asked questions
Is there a legal minimum credit score required for a personal loan?
No — there's no federally mandated minimum. Each lender sets its own threshold. In practice, most lenders publishing minimum requirements start around 580, the low end of the FICO "fair" range (580–669).
What credit score gets the best personal loan rates?
Scores of 720 or higher typically unlock the best rates lenders offer. Within the FICO ranges, borrowers in the 760–850 band tend to see rates near the low end of the market, while the "good" range (670–739) and above generally sees lower APRs and access to larger loan amounts than the "fair" range.
Can I get a personal loan with a credit score in the fair range (580–669)?
Yes — approval is possible at many lenders in the fair range, but expect a higher APR and lower loan limits than a borrower in the good (670–739) or very good (740–799) range would receive.
What besides credit score affects personal loan approval?
Lenders also weigh income and employment stability, your existing debt-to-income ratio, the purpose of the loan, and whether it's secured or unsecured. A strong income profile can sometimes offset a mid-range credit score, particularly at credit unions and community banks that use manual underwriting.
How much more will I pay with a lower credit score on a personal loan?
The gap can be significant. The Federal Reserve's G.19 report tracks the average 24-month personal loan rate at commercial banks — borrowers in the 580–620 range can see rates well above that average, sometimes exceeding 25–30% APR, while borrowers in the 760–850 range tend to qualify near the low end of the market.
Published 2026-05-22 · Updated 2026-08-06 · https://clearvaluelending.com/answers/what-credit-score-do-you-need-for-a-personal-loan