Quick answer: Most personal loan lenders require a credit score of at least 580 to 660, but scores above 700 get you much lower interest rates. Some subprime lenders approve borrowers with scores below 580, though rates will be high.
Key Takeaways
- Prime lenders typically require FICO scores of 660 or higher for approval and competitive rates.
- Subprime lenders may approve scores as low as 560 to 580, but APRs often exceed 30 percent.
- Credit unions often accept lower scores than banks if you have a deposit relationship or stable income.
- Soft credit checks during prequalification do not hurt your score, but the final application triggers a hard inquiry.
💳 What is the minimum credit score for a personal loan?
The minimum score depends on lender type. Banks and online lenders usually set the floor at 660 for unsecured loans. Credit unions may go as low as 580 if you have been a member for at least six months and show steady income. Subprime lenders will approve borrowers with scores below 580, but expect APRs above 30 percent and origination fees up to 8 percent of the loan amount.
The Fair Credit Reporting Act (15 U.S.C. section 1681) requires lenders to disclose which credit report they used if they deny your application or offer worse terms because of your score. You can request a free copy of that report within 60 days of the adverse action notice. If you find errors, dispute them with the credit bureau in writing under Section 611 of the FCRA.
Some lenders advertise “no minimum score” but still run a credit check. They may weigh other factors like debt-to-income ratio or bank account activity more heavily than your FICO number. These lenders often serve borrowers rebuilding credit after bankruptcy or medical debt.
📊 How do lenders use credit score tiers?
Lenders group applicants into tiers based on FICO or VantageScore ranges. Each tier corresponds to a different APR band and maximum loan size. The table below shows typical tier breakpoints used by large online lenders and banks in 2026.
| Credit Tier | FICO Range | Typical Outcome |
|---|---|---|
| Excellent | 740+ | Lowest advertised APR, up to 100,000 dollar limits |
| Good | 670-739 | Mid-range APR, 50,000 dollar average limit |
| Fair | 580-669 | Higher APR, 25,000 dollar average limit, may require cosigner |
| Poor | Below 580 | Subprime lenders only, small limits, high fees |
Your tier also affects whether the lender reports your payments to all three credit bureaus. Prime lenders report to Experian, Equifax, and TransUnion every month. Some subprime lenders only report to one bureau or skip reporting entirely, which means on-time payments will not help you build credit as quickly.
If you fall on the border between two tiers, a few extra points can make a big difference in cost. Paying down a high-balance credit card or disputing an error on your report can push you into a better tier before you apply. Check our loan calculator to see how rate differences change total interest over the life of the loan.
⚠️ What if your score is below 580?
Borrowers with scores below 580 face steep costs. Subprime lenders may approve loans between 1,000 and 5,000 dollars with APRs from 30 percent to 36 percent, the maximum allowed under many state usury laws. Some states cap rates lower: New York limits most consumer loans to 25 percent APR under New York Banking Law section 14-a, and Colorado caps small loans at 36 percent APR under Colorado Revised Statutes section 5-3.1-105.
Alternatives to high-rate personal loans include:
- Credit union share-secured loans, which use your savings as collateral and charge rates as low as 3 percent APR.
- Nonprofit credit counseling through agencies certified by the National Foundation for Credit Counseling, which can negotiate payment plans with your creditors.
- Family loans with a written promissory note that protects both parties and may help you rebuild credit if reported to bureaus.
- Payday alternative loans from federal credit unions, capped at 28 percent APR by the National Credit Union Administration under 12 CFR section 701.21(c)(7)(iii).
If you take a subprime loan, ask whether the lender reports to credit bureaus. On-time payments will not help your score if the lender does not report them. Read the loan agreement carefully for prepayment penalties, which some subprime lenders charge if you pay off the balance early. The Truth in Lending Act requires disclosure of these terms in the loan contract before you sign.
🔍 How do hard inquiries affect your score during the application?
When you formally apply for a personal loan, the lender pulls your full credit report. This triggers a hard inquiry, which can lower your FICO score by 5 to 10 points for up to 12 months. The inquiry stays on your report for two years but stops affecting your score after one year.
The FICO scoring model treats multiple inquiries for the same type of loan as a single inquiry if they happen within a 14 to 45 day window, depending on the FICO version the lender uses. This rate-shopping window lets you compare offers without extra damage to your score. VantageScore uses a similar 14-day window.
Prequalification tools use soft inquiries, which do not affect your score at all. Most online lenders and credit unions offer soft-check prequalification on their websites. You enter basic income and debt information, and the system estimates your approval odds and rate range. Only move to a full application after you have compared prequalified offers from at least three lenders. For more detail on how inquiries work, visit our glossary of credit terms.
❓ Frequently Asked Questions
Can you get a personal loan with a 600 credit score?
Yes, many credit unions and some online lenders approve personal loans for borrowers with scores around 600. Rates will be higher than prime offers, and loan amounts may be limited to 10,000 to 15,000 dollars.
Do all lenders use the same credit score?
No. Most lenders pull FICO scores, but some use VantageScore. FICO and VantageScore can differ by 20 to 30 points for the same borrower. Ask the lender which model they use before applying.
Will a cosigner help if my score is too low?
Yes. A cosigner with good credit can help you qualify for a lower rate or larger loan amount. The cosigner is equally responsible for repayment, and late payments will hurt both credit scores.
How long does it take to raise your score enough to qualify?
Paying down revolving debt and disputing errors can raise your score by 20 to 50 points in 30 to 60 days. Larger improvements take six months or more of on-time payments and low credit utilization.
✅ The Bottom Line
Most personal loan lenders require a credit score of at least 580 to 660, but higher scores unlock better rates and larger loan amounts. If your score is below the threshold, consider credit unions, share-secured loans, or spending a few months improving your credit before you apply.
Compare prequalified offers from multiple lenders to find the best rate for your score tier. Use our APR calculator to estimate total interest costs across different rate scenarios. Small differences in APR add up over three to five year repayment terms.
BankMinistry is not a lender. Approval, rates, and terms determined by lending partners. Not financial advice.