What is the minimum credit score for a loan?
To qualify for a personal loan, borrowers generally need a minimum credit score of 610 to 640. However, your chances of getting a loan with a low interest rate are much higher if you have a “good” or “excellent” credit score of 670 and above.
The typical minimum credit score to qualify for a personal loan is 560 to 660, according to lenders surveyed by NerdWallet. Some lenders may require a higher score. A high credit score doesn't guarantee you'll qualify or get a low interest rate.
Ideal credit score to avail a personal loan
The minimum CIBIL score for a personal loan is between 720 and 750. Having this score means you are creditworthy, and lenders will approve your personal loan application quickly. They may also offer you your chosen loan amount at a nominal interest.
The lowest possible credit score is usually 300, but higher scores might be needed to qualify for certain credit accounts, interest rates and credit card perks, like cash back on purchases. Fortunately, there are steps you can take to establish credit or build better scores over time.
CIBIL Scores are measured on a scale between 300 and 900, with 900 indicating the highest and 300 being the lowest. The minimum CIBIL score that a borrower generally needs to maintain to be easily eligible for a personal loan is 750.
Generally, a personal loan can be availed without a guarantor. However, applicants who have a low CIBIL score or don't have a score at all can apply for a small loan with a guarantor.
A longer credit is preferred for a loan application, a minimum of 2-3 is accepted but longer than this is better. Making your debt repayments on time, on multiple accounts over a long period means that you are responsible for payments.
FICO scores are generally known to be the most widely used by lenders. But the credit-scoring model used may vary by lender. While FICO Score 8 is the most common, mortgage lenders might use FICO Score 2, 4 or 5. Auto lenders often use one of the FICO Auto Scores.
Bank | Minimum interest rate on personal loan (%) |
---|---|
HDFC Bank | 10.5 |
State Bank of India | 12.30 |
Bank of Baroda | 13.15 |
Punjab National Bank | 13.75 |
Bad credit loans often come with high interest rates and may require collateral or a co-signer. Payday loans are high-interest loans that are often marketed as bad credit loans, and should only be used as a last-resort option.
What is personal loan score?
This Personal Loan Score is a statistically derived score developed to predict the likelihood of the consumer to specifically default on consumption loans only. The lending landscape for Personal Loans has rapidly evolved in the recent years with growth being driven by the lower ticket size loans.
- Upgrade. : Best for poor credit.
- Prosper. : Best for peer-to-peer lending.
- LendingPoint. : Best for long repayment terms.
- Upstart. : Best for thin credit.
- Avant. : Best for fair credit.
- Oportun. : Best for small loans.
- LendingClub. : Best for co-borrowers.
- SoFi. : Best for discounts.
Payday loans are a type of unsecured loan where lenders don't typically check credit. These loans tend to be small, usually a $500 loan amount or less (although some lenders might offer more), but come with strict repayment terms.
No-credit-check loans do not require a review of your credit score, which can make them convenient if you have bad credit. But they can be risky and often have extremely high interest rates and origination fees. As a result, you should only consider using these loans as a last resort.
You can get a $500 loan via a personal loan, payday loan, payday alternative loan, cash advance app, or credit card cash advance. However, some options are better than others. Some small loans come with high costs that can cause financial hardship.
Some of the easiest loans to get approved for if you have bad credit include payday loans, no-credit-check loans, and pawnshop loans. Personal loans with essentially no approval requirements typically charge the highest interest rates and loan fees.
How hard is it to get a $30,000 personal loan? This depends on your financial situation. For those with a good credit score — around 670 and up — a $30,000 personal loan may be pretty easy to get. But those new to credit or with a bad score may find it challenging.
Average FICO 8 Score by Generation | ||
---|---|---|
Generation | 2022 | 2023 |
Generation Z (ages 18-26) | 679 - Good | 680 - Good |
Millennials (27-42) | 687 - Good | 690 - Good |
Generation X (43-58) | 707 - Good | 709 - Good |
FICO is the scoring model most lenders use to check an applicant's creditworthiness. A perfect FICO credit score is 850, but experts tell CNBC Select you don't need to hit that target to qualify for the best credit cards, loans or interest rates.
The average FICO credit score in the US is 717, according to the latest FICO data. The average VantageScore is 701 as of January 2024. Credit scores, which are like a grade for your borrowing history, fall in the range of 300 to 850.
Is it better to go through a bank or lender for personal loan?
Since the process of getting a bank loan is more rigorous, banks are typically able to offer lower interest rates and sometimes provide perks for existing customers. Online lenders are less regulated than banks, allowing faster application processes and more lenient eligibility requirements.
- Check the accuracy of your credit report. ...
- Improve your credit score. ...
- Prequalify before formally applying. ...
- Work on reducing your debt. ...
- Find ways to increase your income. ...
- Don't apply for too much money. ...
- Adding a cosigner or a co-borrower.
- Click on 'CHECK OFFER'.
- Enter your 10-digit mobile number and OTP.
- Go with the pre-assigned limit or choose a different loan amount.
- Choose a repayment tenure that suits you best.
- Click on 'PROCEED' to complete the online process.
Requirements for a $5,000 loan vary by lender. But in general, you should have at least Fair credit, which is a score of 580 or above. Lenders may also look at other factors, such as your income and your debt-to-income ratio (DTI), during the application process.
A hardship loan provides funds that can help you get by during a difficult financial time. This loan can help bridge an income gap or cover an emergency. Borrowers are typically approved within a day or two and receive funds in less than a week.
References
- https://www.americanexpress.com/en-us/credit-cards/credit-intel/fha-loan-credit-score/
- https://www.credit.com/blog/720-good-credit-score/
- https://www.maxlifeinsurance.com/investment-plans/cibil-credit-score
- https://www.bankrate.com/mortgages/get-a-mortgage-with-bad-credit/
- https://y20india.in/home-loan-interest-rates-in-india-2024/
- https://www.bankrate.com/loans/personal-loans/private-lenders-vs-banks/
- https://www.fool.com/the-ascent/personal-loans/articles/how-to-get-a-car-loan-with-a-720-credit-score/
- https://www.nerdwallet.com/article/finance/710-credit-score
- https://www.cnbc.com/select/credit-score-needed-to-buy-house/
- https://www.nerdwallet.com/article/loans/auto-loans/bad-credit-score-car-loan
- https://www.cnbc.com/select/why-are-my-credit-scores-different/
- https://www.finn.com/en-US/blog/leasing/how-to-increase-your-credit-score-to-lease-a-car
- https://www.consumer.equifax.ca/personal/education/credit-score/credit-score-personal-loan/
- https://www.experian.com/blogs/ask-experian/checking-your-credit-score-from-a-bank/
- https://www.bajajfinserv.in/insights/smart-tips-to-improve-your-cibil-score
- https://www.cainmortgageteam.com/20-down-payment-on-a-300-000-house/
- https://rcs.co.za/media/what-credit-score-is-needed-for-a-loan-in-south-africa-rcs/
- https://www.incharge.org/blog/can-my-credit-score-go-up-100-points-in-a-month/
- https://www.lendingtree.com/personal/personal-loan-are-you-a-good-candidate/
- https://wallethub.com/answers/pl/credit-score-to-get-30000-personal-loan-1000461-2140767467/
- https://www.hdfcbank.com/personal/resources/learning-centre/pay/what-is-credit-card-limit
- https://www.bajajfinserv.in/insights/everything-you-need-to-know-about-your-credit-score
- https://www.thestreet.com/real-estate/down-payment-on-house-14686280
- https://cred.club/check-your-credit-score/articles/how-long-does-it-take-to-improve-your-credit-score
- https://www.creditkarma.com/credit-cards/i/how-to-get-high-limit-credit-card
- https://time.com/personal-finance/article/which-credit-score-do-mortgage-lenders-use/
- https://www.forbes.com/advisor/personal-loans/40000-loan/
- https://www.bajajfinserv.in/insights/cibil-score-for-home-loan
- https://www.myknowledgebroker.com/blog/personal-insurance/how-to-raise-your-credit-score-by-100-points-in-45-days/
- https://www.rocketmortgage.com/learn/what-credit-score-is-needed-to-buy-a-house
- https://themortgagereports.com/22502/how-to-buy-a-home-50000-per-year-income
- https://www.investopedia.com/average-credit-scores-by-age-5214511
- https://www.livemint.com/money/personal-finance/top-10-personal-loans-from-banks-with-lowest-interest-rates-details-here-11706011927426.html
- https://www.cnbc.com/2023/01/19/how-to-get-your-credit-score-above-800.html
- https://wallethub.com/answers/pl/what-credit-score-do-i-needed-for-a-3000-loan-1000461-2140767345/
- https://www.upstart.com/credit-score/695-credit-score
- https://www.bankbazaar.com/cibil/cibil-score-for-personal-loan-in-hdfc-bank.html
- https://www.mortgagecalculator.org/calcs/car.php
- https://www.upstart.com/credit-score/654-credit-score
- https://www.bankrate.com/loans/personal-loans/no-credit-check-loans/
- https://www.creditmantri.com/cibil-score-required-for-hdfc-credit-card/
- https://www.bankrate.com/real-estate/average-credit-score-to-buy-a-house/
- https://www.credible.com/personal-loan/500-loan
- https://www.marketwatch.com/guides/personal-loans/20000-personal-loan/
- https://www.creditkarma.com/credit-cards/i/fico-score-vs-credit-score
- https://www.coverfox.com/cibil/cibil-score/minimum-cibil-score-for-personal-loan/
- https://www.quora.com/Can-I-get-a-mortgage-on-a-400k-house-with-a-780-credit-score-and-monthly-income-of-only-2-700
- https://wallethub.com/answers/cc/credit-card-for-720-credit-score-1000373-2140670956/
- https://www.bajajfinservmarkets.in/credit-score/experian-vs-cibil-score.html
- https://www.caranddriver.com/research/a31516576/what-credit-score-is-needed-to-lease-a-car/
- https://money.usnews.com/loans/personal-loans/articles/how-to-get-a-20-000-personal-loan
- https://www.self.inc/blog/fico-9
- https://www.bajajhousingfinance.in/what-is-the-ideal-cibil-score-for-nri-home-loan
- https://www.bajajfinserv.in/insta-personal-loan
- https://time.com/personal-finance/article/what-credit-score-do-i-need-to-buy-a-house/
- https://time.com/personal-finance/article/fico-score-8/
- https://www.bankrate.com/loans/personal-loans/types-of-bad-credit-loans-and-their-uses/
- https://www.lendingtree.com/personal/improve-chances-getting-approved-personal-loan/
- https://www.equifax.com/personal/education/life-stages/articles/-/learn/credit-scores-lenders-vs-consumers/
- https://www.cnbc.com/select/which-credit-score-used-when-applying-for-mortgage/
- https://www.myfico.com/credit-education/credit-scores/fico-score-versions
- https://wallethub.com/answers/pl/what-credit-score-do-i-need-for-a-20000-personal-loan-1000461-2140767460/
- https://www.moneygeek.com/personal-loans/how-to-get-a-30000-personal-loan/
- https://www.usatoday.com/money/blueprint/personal-loans/easiest-personal-loans-to-get/
- https://www.lendingtree.com/auto/what-credit-score-is-needed-to-buy-a-car/
- https://stellarfi.com/answer/what-credit-score-is-needed-to-buy-a-300k-house
- https://www.experian.com/blogs/ask-experian/how-do-i-get-my-credit-score-above-700/
- https://www.capitalone.com/learn-grow/money-management/which-credit-score-is-most-accurate/
- https://www.chase.com/personal/credit-cards/education/credit-score/900-credit-score
- https://lendingusa.com/blog/financing/all-about-10000-personal-loans/
- https://www.nerdwallet.com/article/loans/personal-loans/credit-score-need-get-personal-loan
- https://www.moneylion.com/learn/home-loan-for-650-credit-score/
- https://www.rocketmortgage.com/learn/what-credit-score-do-mortgage-lenders-use
- https://www.americanexpress.com/en-us/credit-cards/credit-intel/fico-score-8/
- https://www.investopedia.com/easiest-personal-loans-approved-7644059
- https://www.upstart.com/credit-score/651-credit-score
- https://wallethub.com/answers/pl/monthly-payment-on-a-20000-personal-loan-1000450-2140762725/
- https://www.upstart.com/credit-score/650-credit-score
- https://www.nerdwallet.com/article/mortgages/whats-exact-credit-score-need-buy-home
- https://www.upstart.com/credit-score/720-credit-score
- https://themortgagereports.com/70827/70k-per-year-salary-how-much-house-can-i-afford
- https://www.marketwatch.com/guides/personal-loans/1000-personal-loan/
- https://www.finnable.com/blogs/instant-loan-without-cibil/
- https://www.lendingtree.com/personal/personal-loan-calculator/
- https://www.cbsnews.com/news/this-would-be-your-monthly-mortgage-payment-for-a-400000-home/
- https://www.cnbc.com/select/what-credit-score-should-you-have/
- https://www.ramseysolutions.com/real-estate/how-much-money-do-i-need-to-buy-a-house
- https://themortgagereports.com/108019/down-payment-500000-house
- https://www.upstart.com/credit-score/648-credit-score
- https://www.usbank.com/home-loans/mortgage/first-time-home-buyers/credit-score-for-mortgage.html
- https://www.sofi.com/learn/content/5000-personal-loan/
- https://www.marketwatch.com/guides/personal-loans/loans-with-no-credit-check/
- https://www.businessinsider.com/personal-finance/average-credit-score
- https://www.cnbc.com/select/best-easy-home-mortgages-to-qualify-for/
- https://www.chime.com/blog/whats-a-good-credit-score-in-your-20s/
- https://www.capitalone.com/learn-grow/money-management/lowest-credit-score/
- https://themortgagereports.com/18621/mortgage-credit-score-minimum-gina-pogol
- https://www.credit.com/blog/which-credit-score-is-most-accurate/
- https://wallethub.com/answers/pl/how-much-can-i-borrow-with-a-650-credit-score-1000508-2140806921/
- https://www.cnbc.com/select/easy-tips-to-help-raise-your-credit-score/
- https://www.bankrate.com/real-estate/how-much-house-can-i-afford-70k-salary/
- https://themortgagereports.com/107713/down-payment-400000-house
- https://www.transunioncibil.com/content/dam/transunion-cibil/business/collateral/sheet/P-personal-loan-score_asset-sheet.pdf
- https://cred.club/check-your-credit-score/articles/how-long-does-it-take-to-get-a-700-credit-score-from-500
- https://www.chase.com/personal/credit-cards/education/credit-score/most-accurate-score
- https://www.experian.com/blogs/ask-experian/which-credit-scores-do-mortgage-lenders-use/
- https://www.experian.com/blogs/ask-experian/what-is-fico-bankcard-score-8/
- https://www.paisabazaar.com/cibil/reasons-for-low-cibil-score/
- https://www.nerdwallet.com/article/loans/personal-loans/hardship-loans
- https://www.cainmortgageteam.com/how-much-house-can-i-afford-with-a-60k-salary/
- https://www.upstart.com/credit-score/655-credit-score
- https://www.investopedia.com/articles/credit-loans-mortgages/081416/fico-5-vs-fico-8-what-are-differences.asp
- https://www.bajajfinserv.in/insights/ideal-credit-scores-to-have-when-applying-for-loans
- https://www.lendingtree.com/personal/what-credit-score-do-you-need-for-personal-loan/
- https://wallethub.com/answers/pl/what-credit-score-do-i-need-for-a-5000-personal-loan-1000461-2140767354/
- https://www.experian.com/blogs/ask-experian/credit-education/score-basics/750-credit-score/