Lowest Credit Score Lenders Accept: What You Need to Know

Heard people say you need a “good” credit score to get a personal loan, but nobody really says what that actually means? Here’s the real deal: Most banks want to see at least a 600 to 640 before they’ll even talk personal loans with you. That’s right—if your score’s under that range, you probably won’t be grabbing cash from big banks anytime soon.

Still, not every lender plays by the same rules. Some will dip lower, even down to 550 or so, especially the online ones or smaller outfits. But the full-on bottom? That’s usually 500—anything less, and you’re really looking at payday lenders, which comes with sky-high fees and some pretty harsh terms. It’s worth knowing where you fall before you hit ‘apply,’ so you don’t end up with a rejected application and a pointless hit to your credit report.

Don’t panic if you’re not at 600-plus just yet. Some lenders care about more than just your score. They might look at your income, job stability, or even your bank history. If you find yourself locked out with traditional banks, it’s not game over—you still have other doors you can knock on. Just know, the lower the score, the higher the interest, so read those offers closely before signing anything!

• What’s the Magic Number? Common Minimum Credit Scores
• Why Lenders Set Credit Score Cutoffs
• Can You Get a Personal Loan With Bad Credit?
• Tips to Boost Your Chances for Approval

What’s the Magic Number? Common Minimum Credit Scores

Ask ten lenders what their cutoff is, and you’ll probably get ten different answers. The lowest credit score most big-name banks want is usually in the 600s—specifically, 640 is a sweet spot. This is your line between ‘average’ and ‘meh,’ as lenders see it. But you’ve got online lenders, credit unions, and fintech companies that play things a bit looser.

Here’s a breakdown of what you’ll actually find out there. It’s not just guesswork; these numbers come straight from some of the top players in the personal loan space as of 2024:

Ever seen folks talk about “no minimum credit score”? What they really mean is, if you’re below 500, you’re in payday or title loan territory. Those are loans you want to avoid if at all possible, because costs can spin out of control.

Don’t just go by the number, though. Some lenders want a higher score if you’re borrowing more, or they’ll budge a bit for folks with a steady job and solid income. Age of your credit accounts and any recent bankruptcies also tip the scales on their decision. Want to up your chances? Try smaller loan amounts and have proof of income ready when you apply.

Why Lenders Set Credit Score Cutoffs

Lenders aren’t just tossing out numbers to be difficult—they set credit score cutoffs because they need to protect themselves. A credit score is basically a quick snapshot of how risky you are to lend money to. The lower your score, the more lenders worry you might not pay back that personal loan.

Here’s the thing: According to FICO, borrowers with credit scores below 600 default on loans more often than those with higher scores. That’s why lenders get skittish when they see numbers down in the 500s. If too many people miss payments, the lender loses money and may even have to increase interest rates for everyone.

Most banks and credit unions stick to a minimum cutoff—usually around 600 to 640—because:

• They want to make sure most of their customers are likely to pay back what they borrow.
• They have to follow rules from investors or regulators about what risks they can take.
• They depend on their customers’ performance to keep costs and interest rates fair for everyone.

But there’s more to the story. How risky are borrowers in different credit score buckets? Check this out:

That last row is why you see a lot of lenders set their cutoff above 600. It helps them avoid that risky bottom group, so they can keep interest rates reasonable and not lose money left and right. Bottom line? The lowest credit score lenders will accept depends on how much risk they’re willing to take on. Your score signals a lot about your habits with money—and lenders take that seriously.

Can You Get a Personal Loan With Bad Credit?

You might think having bad credit wipes you out of the running, but that’s not true. Getting approved for a personal loan with bad credit is tough, but it’s not impossible—especially if you know where to look and what to watch out for. The real difference comes down to the kind of lender you choose and what they value besides your credit score.

Let’s get specific. Plenty of lenders—especially online ones—will work with people whose scores sit between 550 and 600. Some even drop down to the low 500s. Just remember, the lower your score, the higher your interest rate. Here’s a snapshot of what different lender types usually accept:

If your score is under 600, expect the loan offers to come with some trade-offs. Rates might be steep, and approved amounts could be lower—lots of folks get approved for $1,000 or $2,000, not $10K, unless they show strong income.

Here’s how to up your odds if your numbers are less than perfect:

• Check lenders that specialize in bad credit loans. A bunch of online lenders market directly to those with rough histories—think OneMain Financial or LendingPoint.
• Add a co-signer with a stronger score if you can. Some lenders, like Upgrade, count your co-signer’s score, which bumps your odds and might drop your rate.
• Consider using collateral if you own a car or have savings. Secured loans let you leverage what you own for better terms.
• Keep your eyes peeled for fees. Some “bad credit” loans jam in origination or prepayment fees, which can cost hundreds extra. Always read the fine print.

Don’t be tempted by payday or title loans—these almost always spell disaster thanks to outrageous interest (often 300%+!). Stick to real personal loan lenders, even if you have to shop around a bit.

Bottom line: Yes, you can get a personal loan with bad credit, but it pays—literally—to do your homework before hitting apply. The offers are out there, but make sure you’re not trading one problem for a bigger one down the road.

Tips to Boost Your Chances for Approval

So, your score isn’t where you want it. No big shock—plenty of people land in the same boat. The good news? You’ve got real, practical moves you can make to tilt things in your favor, even if you’re dealing with less than perfect credit. Let’s walk through some that actually work.

• lowest credit score: Know where you stand. Check your credit report for errors because even a small mistake—like a payment marked late that wasn’t—can drag your score down. You’re allowed a free report each year from all three big credit bureaus (Experian, TransUnion, Equifax), so hit up AnnualCreditReport.com and scan those details.
• Pay down your debts. Lenders love to see that you aren’t maxed out on your credit cards. If possible, get your balances well below 30% of your limits. That “credit utilization” thing matters more than you think—a real jump-kicker for your score.
• Add a co-signer. If you can team up with someone who has solid credit, it’s a massive plus. Your buddy’s or family member’s score can tip the scale with certain lenders and lower your rates too.
• Bring proof of steady income. If your credit’s not showing you in the best light, strong pay stubs or bank statements help. Showing you can handle the loan, even if your score’s lagging, can move applications forward.
• Shop around but do it all at once. When you check out multiple lenders within a short window—usually 14 to 45 days—credit bureaus lump those inquiries as just one. So you won’t tank your score just by shopping for the best rate.
• Try credit unions or online-only lenders. They sometimes work with folks who have lower credit since they look at your full story. Bonus: the rates are often better than old-school banks if you qualify.

Cramming everything into a quick fix isn’t realistic, but these steps can bump up your odds without a long wait. And remember, just because you can get the loan doesn’t mean you should take the first offer you land. Read the fine print and make sure you’re not trading one headache for another.