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Most personal loan lenders require a minimum credit score of 580–660 to qualify, but the rate you receive depends heavily on where your score falls. Borrowers with excellent credit (720+) can access rates as low as 6.99% APR, while borrowers with fair credit (580–669) typically see rates of 18–35% APR. Here is what you need to know.
Personal Loan Rates by Credit Score Range
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| Credit Score | Rating | Typical APR Range | Best Lender |
|---|
| 720 – 850 | Excellent | 6.99% – 14% | LightStream, SoFi |
| 690 – 719 | Good | 12% – 20% | SoFi, Marcus |
| 630 – 689 | Fair | 18% – 28% | Upgrade, LendingClub |
| 580 – 629 | Poor | 25% – 36% | Upstart, Avant |
| Below 580 | Very Poor | Often denied | Consider secured loan |
Best Lenders by Credit Score
Excellent Credit (720+): LightStream
LightStream offers the lowest personal loan rates available — starting at 6.99% APR for borrowers with excellent credit. There are no fees of any kind, and they will beat any competitor's rate by 0.10 percentage points. Same-day funding is available for applications approved before 2:30 PM ET.
Good Credit (690–719): SoFi
SoFi is the best option for borrowers with good credit. No origination fees, no prepayment penalties, and unemployment protection make it stand out. Rates start at 8.99% APR and loan amounts go up to $100,000.
Fair Credit (580–689): Upgrade
Upgrade accepts borrowers with credit scores as low as 580 and offers direct creditor payoff for debt consolidation. Rates are higher than LightStream or SoFi, but Upgrade is one of the most accessible options for borrowers rebuilding their credit.
How to Get a Lower Rate
- Check your rate with a soft pull first — All reputable lenders offer a rate quote that does not affect your credit score. Compare at least 3 lenders before applying.
- Add a co-borrower — If someone with better credit co-signs your loan, you may qualify for a significantly lower rate.
- Reduce your debt-to-income ratio — Pay down existing debt before applying. Lenders look at your monthly debt payments as a percentage of your income.
- Improve your score first — Even raising your score from 650 to 700 can reduce your rate by 5–8 percentage points, saving hundreds per year.
Editorial Disclosure: WiseIQ may earn a referral commission when you click on partner links and apply for financial products. Rates shown are representative ranges and may vary based on individual creditworthiness.
How Lenders Actually Use Your Credit Score
Your credit score is one input in a lender's decision, not the only one. Most lenders use a combination of your credit score, debt-to-income ratio (DTI), employment history, and income to make approval decisions. This means a borrower with a 620 score and a low DTI may get approved while a borrower with a 650 score and a high DTI gets rejected.
Understanding this helps you prepare a stronger application. Before applying, calculate your DTI: add up all monthly debt payments (credit cards, car loan, student loans, etc.) and divide by your gross monthly income. Most lenders want a DTI below 40%. If yours is higher, paying down some debt before applying can improve your approval odds more than trying to raise your score.
Real Scenarios by Credit Score Range
Score 580–619 — Limited but Possible
At this range, Upstart and Avant are your primary options. Expect APRs of 25%–36% and loan amounts capped around $10,000–$15,000. With a stable income and low DTI, approval is realistic. The key question: does the loan make financial sense at 30% APR? For debt consolidation where your cards are at 29%+, yes. For a discretionary purchase, probably not.
Score 620–659 — Competitive Options Open Up
At 620+, you qualify for most major lenders including Achieve and LendingClub. APRs typically range 15%–25%. Loan amounts up to $35,000 are realistic. This is the range where shopping multiple lenders pays off most — the spread between the best and worst offer can be 8–10 percentage points.
Score 660–699 — Good Rates Available
At 660+, LightStream, SoFi, and most major banks become available. APRs of 9%–15% are realistic for qualified borrowers. At this range, having a co-signer with excellent credit can push your rate down another 2–4 percentage points.
How to Get Approved with a Lower Score
If your score is below the threshold for your target lender, you have several options beyond simply waiting for your score to improve.
Apply with a co-signer. A co-signer with excellent credit can help you qualify for loans and rates you couldn't access alone. The co-signer is equally responsible for repayment — if you miss payments, it damages their credit too. This is a significant ask, so only pursue it if you're confident in your ability to repay.
Reduce your debt-to-income ratio first. Paying down existing debt before applying can improve your approval odds even without changing your credit score. A DTI below 30% is a strong signal to lenders.
Look for lenders that use alternative data. Upstart considers education, employment history, and income alongside credit scores. If you have a thin credit file but stable income, Upstart may approve you where traditional lenders won't.
Start with a smaller loan amount. Lenders are more willing to approve smaller loans for borderline applicants. Borrowing $3,000 instead of $10,000 significantly improves your approval odds at the same credit score.
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Frequently Asked Questions
What credit score do I need to get a personal loan?
Most personal loan lenders require a minimum credit score of 580–620 for approval. However, the best rates (under 10% APR) typically require 720+. Lenders like Upstart and Avant specialize in fair-credit borrowers (580–669), while SoFi and LightStream target excellent-credit borrowers (720+).
Can I get a personal loan with a 550 credit score?
Getting a personal loan with a 550 score is difficult but possible. Options include: (1) secured personal loans where you pledge collateral, (2) credit union loans which often have more flexible criteria for members, (3) co-signed loans with a creditworthy co-borrower, and (4) lenders like OppLoans that specialize in poor-credit borrowers (though at high APRs).
How does my credit score affect my personal loan rate?
Credit score has a direct impact on personal loan APR. A borrower with a 760 score might receive 8%–10% APR, while a borrower with a 620 score from the same lender might receive 20%–25% APR for the same loan amount. On a $10,000 loan over 3 years, this difference amounts to approximately $2,000–$3,000 in additional interest.
Should I improve my credit score before applying for a personal loan?
If your need is not urgent, improving your score before applying can save significant money. Moving from 620 to 680 typically takes 6–12 months and can reduce your APR by 5–8 percentage points. Moving from 680 to 720 can reduce it by another 3–5 points. The savings compound over the loan term.
Do personal loan applications hurt my credit score?
Applying for a personal loan results in a hard inquiry, which temporarily lowers your score by 5–10 points. If you're rate shopping, most scoring models treat multiple loan inquiries within a 14–45 day window as a single inquiry. Pre-qualification checks (soft inquiries) do not affect your score at all.