How does your credit score impact the personal loan options you have available?

The credit score you need to qualify for a personal loan depends on the lender and the factors they consider important when assessing the risk you pose as a borrower. Generally, a good to excellent FICO® credit score is needed to be approved for a personal loan. The ideal “good” FICO score that can grant you lower interest rates is 690.

Lenders do look at other factors apart from your credit score before approving you for a loan, like your debt-to-income ratio, your bank balance, and the length of your credit history. But, your credit score does hold a lot of weight in their decision. Some lenders do approve loans for people with fair credit scores, but those generally come with higher interest rates. Whatever your credit score may be, you may still qualify for a personal loan. The difference will be in the loan amounts and interest rates you’ll be expected to pay.