What Credit Score Do You Need for a Personal Loan? (Ranges + What They Mean)

Thinking about getting a personal loan? The first question that pops into your head is probably, “Is my credit score good enough?” Here’s the good news: there isn’t one single magic number. In practice, lenders evaluate your score within specific ranges—from fair to excellent. Understanding where you stand is the crucial first step to unlocking the best possible loan.

The Credit Score Tiers: Where Do You Stand?

Lenders use credit score tiers to quickly gauge your financial history and decide whether to offer you a loan. A FICO score from 740-850 is considered Very Good to Exceptional, making you a top applicant. The “Good” tier (670-739) also has very strong approval odds and includes the average credit score needed to secure a loan with favorable terms.

What if your score is in the “Fair” range (580-669)? You can still get approved. Many lenders set their minimum credit score for a personal loan right in this bracket, though you will have fewer options and they'll look more closely at your income. Knowing your tier is the first step, but your score does more than just open the door to approval—it directly controls the price you’ll pay.

How Your Score Directly Impacts Your Wallet: An APR Example

Your credit score tier isn’t just about getting approved; it’s about the price you’ll pay. Lenders use a figure called the Annual Percentage Rate (APR) to set this price, which is the true cost of borrowing money each year, including interest and fees. A lower score almost always means a higher APR.

Let’s see this in action with a $10,000 loan paid back over five years. A borrower with a “Good” score might be offered an 11% APR, for a monthly payment of $217. In contrast, someone with a “Fair” score could face a 25% APR, pushing their monthly payment to $294. That’s a $77 difference every month. Over the life of the loan, that higher APR adds up to over $4,600 in extra interest.

Before applying, you can use a personal loan pre-qualification soft pull to check your potential rates without hurting your score. This is a smart first step to finding the best personal loans for fair credit.

Two Simple Steps to Boost Your Score

If that higher interest rate example has you worried, you can take action. Of all credit score factors, the most powerful is simple: pay every single bill on time. It’s the foundation of a healthy score.

For a faster boost, focus on your credit card balances. Lenders get nervous when they see cards maxed out. A good rule of thumb is to keep your balance below 30% of your total credit limit. Paying down balances is one of the quickest ways to improve your credit score. Making consistent, timely payments and lowering your credit card debt shows lenders you’re a reliable borrower, helping you unlock better rates.

Find Your Best Loan with Confidence

You now see your credit score not as a final grade, but as a starting point. It’s a map showing where you stand with lenders, empowering you to shop for a personal loan with confidence. Safely explore rates using pre-qualification—it’s a “soft pull” that won’t affect your score.

Disclaimer: The information provided in this blog post is for educational and informational purposes only and should not be considered as financial, legal, investment, or tax advice. Symple Lending is not responsible for any financial outcomes resulting from following the information or ideas shared in this blog. Every individual's financial situation is unique, and we strongly encourage readers to take their own circumstances into consideration and consult with a qualified financial, legal, tax, and investment advisor before making any financial decisions. Symple Lending does not provide financial, legal, tax, or investment advice.