There is no universal minimum
Personal loan lenders set their own credit score requirements, and they vary widely depending on the lender type, loan size, and borrower profile. A score that gets you approved at one institution may get you declined at another. The credit score question is really three separate questions: which lender tier you're targeting, what rate you'll pay at that score, and whether a secured loan makes more sense than an unsecured one.
Lender tiers and score requirements
Prime lenders (banks and credit unions): Traditional banks and many credit unions typically require a minimum score of 670–700 for an unsecured personal loan. At the higher end of this tier — 740 and above — you're likely to qualify for the best advertised rates. Below 670, prime bank approval becomes unlikely.
Credit unions often have more flexibility than banks. Many offer personal loans to members with scores in the 620–660 range, especially if you have an established relationship with the institution. If you have a checking account at a local credit union, it's worth asking directly.
Online lenders (LightStream, SoFi, Marcus, Discover): These lenders have varying minimums. LightStream and SoFi target well-qualified borrowers and generally require 680–700+. Marcus by Goldman Sachs typically requires a 660 minimum. Some online lenders publish their minimum requirements explicitly; others don't. Most allow you to check rates with a soft pull before you apply.
Non-prime / high-rate lenders (Avant, Upgrade, LendingClub, Upstart): These lenders work with borrowers in the 580–660 range. Approval rates are higher, but interest rates are significantly higher too — often 18–35% APR. They use additional data points beyond credit score: income, employment, education, and in Upstart's case, alternative factors like degree earned and GPA.
Lenders with no credit minimum: Some lenders work with very thin or damaged credit files. These loans carry very high APRs and should be approached carefully. The effective cost of a 35%+ APR loan often outweighs the convenience.
What interest rates look like by score range
APR varies substantially by score. Approximate ranges as of late 2025:
- 750+: 7–12% APR for $10,000–$25,000 unsecured personal loan
- 700–749: 12–18% APR
- 660–699: 18–24% APR
- 620–659: 24–32% APR
- Below 620: 32–36% APR (or denial at many lenders)
These are illustrative ranges. Actual offers depend on loan size, term length, income, debt-to-income ratio, and the specific lender. Even within the same score band, two applicants can get materially different offers based on their full credit profile.
Debt-to-income ratio matters as much as credit score
Many consumers focus entirely on their credit score and get surprised by denials from lenders they expected to qualify with. Debt-to-income ratio (DTI) — your total monthly debt payments divided by your gross monthly income — is a critical underwriting factor.
Most lenders want a DTI below 36–40%. If you already have significant mortgage payments, car loans, or credit card minimums, a high credit score won't guarantee approval. Pay down existing balances before applying if you're close to the DTI limit.
Secured vs. unsecured personal loans
An unsecured personal loan has no collateral backing it. The lender's recourse if you don't pay is reporting to credit bureaus and potentially suing for a judgment. Credit score requirements for unsecured loans are higher because the lender has no asset to recover.
A secured personal loan is backed by collateral — often a savings account, CD, or vehicle. Because the lender can seize the collateral, they take on less risk and will often approve borrowers with lower scores or better rates than unsecured products.
Credit-builder loans are a specific type of secured loan designed for thin or damaged credit. The loan amount is held in a savings account while you make payments — you receive the funds at the end. They're designed for score-building, not cash access.
If your score is below 640 and you need actual access to funds, a secured personal loan (using a savings account as collateral) or a secured credit card with a high limit is often a more practical path than a high-rate unsecured loan.
Hard inquiry impact
Every formal personal loan application triggers a hard inquiry on your credit report. A single inquiry reduces your score by approximately 5 points in most models. Multiple hard inquiries within a short window (14–45 days, depending on the FICO version) are treated as rate-shopping and usually count as one inquiry.
Use lenders' pre-qualification tools — which use soft pulls — before committing to a full application. SoFi, Marcus, Avant, and many others offer this.
Your next step
Pull your credit reports from all three bureaus at AnnualCreditReport.com. If you have any disputable negative items — incorrect late payments, wrong balances, collection accounts that don't belong to you — get those removed before applying. Even a 20-point improvement can move you from the 24% APR tier to the 18% tier, which saves hundreds or thousands of dollars over the loan term.