What’s the minimum credit score for a personal loan?
Strictly speaking, there is no minimum credit score for you to be approved a personal loan. However, if you have a credit score rated ‘very poor’ or ‘poor’, your chances of getting a personal loan are minimal.
The three largest credit reference agencies (CRAs) that lenders use to independently work out your credit score are Experian, Equifax and TransUnion. They all have different score ranges, marking out of 999, 700 and 710 respectively. This table shows how they rate each score:
Experian
Equifax
TransUnion
Very Poor
0-560
0-279
0-550
Poor
561-720
280-379
551-565
Fair
721-880
380-419
566-603
Good
881-960
420-465
604-627
Excellent
961-999
466-700
638-710
If your credit rating scored in the ‘very poor’ or ‘poor’ sections, you will find it a lot harder to get approval for a personal loan. If you do manage to find a personal loan, it is likely to be a ‘poor credit’ loan, with extremely high interest rates. Therefore, although there is no minimum credit score requirement for personal loan, the higher you keep your credit score the better your access to loan options will be.
If your credit score is low, you might want to consider taking out a credit builder credit card, which will help you improve your score over time.
Strictly speaking, there is no minimum credit score for you to be approved a personal loan. However, if you have a credit score rated ‘very poor’ or ‘poor’, your chances of getting a personal loan are minimal.
The three largest credit reference agencies (CRAs) that lenders use to independently work out your credit score are Experian, Equifax and TransUnion. They all have different score ranges, marking out of 999, 700 and 710 respectively. This table shows how they rate each score:
|
|
Experian |
Equifax |
TransUnion |
|
Very Poor |
0-560 |
0-279 |
0-550 |
|
Poor |
561-720 |
280-379 |
551-565 |
|
Fair |
721-880 |
380-419 |
566-603 |
|
Good |
881-960 |
420-465 |
604-627 |
|
Excellent |
961-999 |
466-700 |
638-710 |
If your credit rating scored in the ‘very poor’ or ‘poor’ sections, you will find it a lot harder to get approval for a personal loan. If you do manage to find a personal loan, it is likely to be a ‘poor credit’ loan, with extremely high interest rates. Therefore, although there is no minimum credit score requirement for personal loan, the higher you keep your credit score the better your access to loan options will be.
If your credit score is low, you might want to consider taking out a credit builder credit card, which will help you improve your score over time.
