What is a good credit score for a personal loan?

Asked by: Ms. Sister Kertzmann I  |  Last update: February 21, 2025
Score: 4.8/5 (16 votes)

To qualify for a personal loan, you generally need a minimum credit score of at least 580 — though certain lenders have even lower requirements than that. However, your chances of getting a low interest personal loan rate are much higher if you have good to excellent credit, typically a score of 740 and above.

What credit score do I need for a personal loan?

You generally need a credit score of 580 or higher to qualify for a personal loan. And you'll typically need a score in the 700s to qualify for favorable terms. That said, there's no universal minimum credit score required to get approved for a personal loan.

What credit score do I need for a $40,000 loan?

You'll have the most luck getting approved for a $40,000 loan with at least a very good credit score (at least 740), and a DTI ratio of 36% or lower.

What credit score do you need to get a $20,000 loan?

A minimum credit score of 670 to 739 is typically required for a $20,000 personal loan. Proof of steady income, including pay stubs, tax returns, and bank statements, is essential. Applicants must be at least 18 years old and legal U.S. citizens. A debt-to-income ratio below 36% enhances loan approval chances.

What credit score do I need for a $3,000 loan?

Qualification for a $3,000 personal loan often requires a decent credit score, with many lenders preferring scores of 660 or higher for better terms. Monthly payments on personal loans are fixed, making budgeting easier, but borrowers should be cautious of potential origination fees and penalties.

Credit Cards vs Lines of Credit vs Personal Loans - What's the Difference? Pros and Cons Discussed

45 related questions found

What is the monthly payment on a 3000 personal loan?

The monthly payment on a $3,000 loan ranges from $41 to $301, depending on the APR and how long the loan lasts. For example, if you take out a $3,000 loan for one year with an APR of 36%, your monthly payment will be $301.

Will Navy Federal give me a loan with a 550 credit score?

Navy Federal says its loans are available to borrowers across the credit spectrum, including borrowers with bad credit or thin credit histories, and there's no minimum credit score requirement. You must be a member of Navy Federal to apply.

What credit score do I need for a $20,000 car loan?

In general, you'll need a FICO credit score of at least 600 to qualify for a traditional auto loan, although there are lenders that offer bad credit auto loans.

How can I get a $5000 loan without income proof?

You may be able to get a personal loan without income verification if you pledge collateral, use a co-signer or have an excellent credit score. There are several ways to get approved for a personal loan with no proof of income, including applying with a co-signer and securing the loan with collateral.

How much is a $40 000 loan for 5 years?

If you take a loan for five years and your interest rate is 4%, your monthly payment for a $40,000 loan will be $737. Remember that the longer the loan period, the more money you will overpay to the bank.

What is an excellent credit score?

For a score with a range of 300 to 850, a credit score of 670 to 739 is considered good. Credit scores of 740 and above are very good while 800 and higher are excellent.

What credit score is needed for a $35000 personal loan?

Requirements to Get a $35,000 Personal Loan

Personal loan applicants with a credit score of 640 or higher are more likely to be offered favorable terms. Collateral: Personal loans are typically unsecured, which means collateral will not be required to back the loan.

What is the easiest loan to get immediately?

Some of the easiest loans to get approved for if you have bad credit include payday loans, no-credit-check loans, and pawnshop loans. Before you apply for an emergency loan to obtain funds quickly, make sure you read the fine print so you know exactly what your costs will be.

Does getting a personal loan hurt my credit score?

A personal loan will cause a slight hit to your credit score in the short term, but making on-time payments will bring it back up and can help improve your credit in the long run. A personal loan calculator can help determine the loan repayment term that's right for you.

What is a hardship loan?

Hardship personal loans are a type of personal loan intended to help borrowers overcome financial difficulties such as job loss, medical emergencies, or home repairs. Hardship personal loan programs are often offered by small banks and credit unions.

Which bank gives a loan easily?

HDFC Bank customers can get Personal Loans with minimal or no documentation. In fact, if they are pre- approved for a Personal Loan, they can easily apply for it.

Do personal loans verify income?

Most personal loan lenders will require proof of income, even if they don't disclose their minimum income requirements and even if those requirements are relatively low.

What is the biggest loan you can get with no credit?

Just keep in mind that if you are approved for the loan with a lower (or no) credit score, you may be subject to a higher interest rate. You can apply for loan amounts as low as $1,000 and as much as $50,000.

How much is the monthly payment for a $20000 car loan?

Payments would be around $377 per month. According to the results, it will take you 60 months, an interest rate of 5% of $2,645, to fully pay your $20,000 car loan. However, the monthly cost of a $20,000 car loan will depend on your repayment period and the annual percentage rate (APR).

What credit score do car dealers use?

Many dealers use a FICO Auto Score instead of a traditional FICO Score or VantageScore when evaluating your car loan application. Your FICO Auto Score can range from 250 to 900, depending on your previous auto loans.

Is credit karma accurate?

Overall, Credit Karma may produce a different result than one or more of the three major credit bureaus directly. The slight differences in calculations between FICO and VantageScore can lead to significant variances in credit scores, making Credit Karma less accurate than most may appreciate.

How easy is it to get a loan from Navy Federal?

Applying is fast and easy, and you can enjoy a fixed monthly payment at a competitive rate. Plus, you won't pay any origination or prepayment fees. In most cases, you'll receive same-day funding.

What is the lowest credit score to buy a car?

According to Car and Driver, “Most used auto loans go to borrowers with minimum credit scores of at least 675. For new auto loans, most borrowers have scores of around 730. The minimum credit score needed for a new car may be around 600, but those with excellent credit often get lower rates and lower monthly payments.”