What Credit Score Do You Need for a Bank Loan? The Real Numbers You Should Know

Ever checked your credit score and wondered if that number is good enough for a loan? You're not the only one. Banks really do care about your credit score—it’s front and center when they decide to hand out loans. But here's the thing: there isn't one magic number that works for every loan or every bank.

Most banks start considering borrowers around a credit score of 620 for personal loans. Some want to see 660 or even higher if you’re after better rates. So, a score in the low 600s might get you through the door, but it won’t guarantee low interest or easy approval. On the flip side, break into the 700s, and you’re looking way better in the bank’s eyes. That can mean a lower rate and bigger loan options.

It’s not just a numbers game. Banks also look at things like your income, how much debt you already have, and even the reason you want a loan. If your score is hovering below 600, regular banks will likely say no. But some lenders still take a shot on folks with rougher credit—it usually just costs more.

• Credit Scores: The Real Deal
• Typical Bank Loan Requirements
• Can You Get a Loan With Bad Credit?
• What Lenders Really See
• Tips for Getting Approved

Credit Scores: The Real Deal

A credit score isn’t just a random number. It’s a three-digit snapshot of how banks and lenders see your trustworthiness with money. The most common type is the FICO score. It ranges from 300 to 850, and for a lot of banks, this is the score that makes or breaks your bank loan application.

Here’s how the ranges usually break down:

• 300-579: Very poor. Most banks instantly say “nope.”
• 580-669: Fair. Some lenders will consider your personal loan request, but rates are steep.
• 670-739: Good. You’re in a decent spot—banks open more doors at this range.
• 740-799: Very good. Expect lower interest rates and smoother approvals.
• 800-850: Excellent. You’re the kind of borrower banks compete for.

According to Experian’s latest numbers, the average American credit score was around 715 in 2024. That puts most people in the “good” range, but not all the way at the top. Where you land on this scale sets the tone for what kind of loan offers (and rates) banks are willing to throw your way.

FICO scores aren’t random—they come from a mix of your money habits. Payment history is the biggest factor, making up 35% of your score. Then you’ve got:

• Amount owed: About 30% of your score.
• Length of credit history: 15%.
• New credit (recent applications): 10%.
• Types of credit (credit cards, car loans, etc.): 10%.

If your score is low, banks worry you’re risky. If it’s high, you look solid and safe, meaning you’re more likely to snag that loan approval—sometimes even with a bigger amount and at a better rate.

So whether you’re after a quick $2,000 or a bigger amount, where your credit score falls can honestly make or break the deal. Keep tabs on your score. Knowing where you stand is half the battle before you start loan shopping.

Typical Bank Loan Requirements

So, what does a bank really look at when you ask for a personal loan? The list is shorter than you might expect, but each thing matters a lot. The first thing they’ll pull is your credit score. For most standard bank loans, you’ll need at least a 620. Want a shot at decent rates? Aim for 660-700 or higher. But, don’t stop there. Here are the nuts and bolts banks usually check every time:

• Credit score (usually at least 620, higher is better for loan terms)
• Steady income/proof of employment (think W-2s, pay stubs, or bank statements)
• Debt-to-income (DTI) ratio—banks like to see it below 35-40%
• Length at current job and how long you’ve lived at your address
• Your loan purpose (banks want to know you’re not taking out a loan for gambling or riskier stuff)

The interest rate you get directly ties back to your credit score. A person with a score of 750 can score a personal loan rate around 11-13%. Drop down to 620, and you might see rates shoot up to 27% or more, if you get approved at all.

Beyond the number, banks will look at your income and how much you owe compared to what you make (DTI ratio). If your other debts are high, even a good score might not save you. Keep paperwork handy—recent pay stubs, tax returns, and bank statements can speed things up.

Banks also want to know you’re stable. They’ll pay attention if you jump jobs a lot or just moved recently. Not a deal-breaker, but it can make things harder if your credit score isn’t strong.

Bottom line: hit that 620, have your income proof ready, and keep your existing debts under control for the best shot at a personal loan from a bank.

Can You Get a Loan With Bad Credit?

So, what if your credit score is looking sketchy? Banks usually aren’t thrilled about lending to someone with a score under 600, but bad credit doesn’t always slam the door shut. Some lenders—especially online or community-based ones—will consider you even with a low score. They just play by different rules than big banks.

Here’s the trade-off: if you get a personal loan with bad credit, you’ll probably see higher interest rates and smaller loan amounts. Lenders want to cover their risk, so you end up paying more for the money you borrow. Some may also tack on origination fees or require a co-signer.

Here’s how you can boost your odds of getting approved with bad credit:

• Check out online lenders and credit unions—some specialize in loans for people with lower scores.
• Consider secured loans, which require collateral like a car or savings account. This can make banks more willing to say yes.
• Adding a co-signer with a stronger credit score can up your chances of approval and get you better rates.
• Show proof of stable income, like pay stubs or tax returns, to reassure the lender you can handle the payments.

To get an idea of what you might face, check out this quick comparison of average rates by credit score:

The bottom line? Getting a bank loan with bad credit is possible, but expect fewer choices and more expensive terms. If that’s not ideal, focus on lifting your score by paying bills on time and paying down existing debt. Just a few months of good habits can start to move that score in the right direction.

What Lenders Really See

When you apply for a personal loan, banks dig a lot deeper than just your credit score. They want the whole picture before saying yes or no. Think of your credit score as the cover of the book, but lenders actually flip inside to see what’s really going on.

Besides your credit score, banks look at a few major things:

• Debt-to-income ratio (DTI): This is a biggie. It tells banks how much of your money goes toward paying debts each month compared to what you actually earn. If your DTI is higher than 40%, many banks get nervous.
• Income: Lenders need to see if you actually make enough money to pay them back. They’ll ask for pay stubs, bank statements, or tax returns for proof.
• Employment status: A steady job is a green light for lenders. If you’ve been bouncing from job to job, or if you’re brand new at your current gig, some banks might worry.
• Credit history: This includes how long you’ve had credit, how many loans or credit cards you’ve opened, and whether you’ve missed any payments. A string of late payments or a bankruptcy will absolutely catch a lender’s eye—and not in a good way.
• Type of credit used: Lenders check if you have a good mix of loans, credit cards, and maybe even a mortgage. Too many credit cards maxed out isn’t a good sign for banks.

Here’s a quick look at what banks check for most often:

One thing people forget: the reason for your loan matters. Telling banks exactly what you need the money for—like debt consolidation, a new car, or home improvement—can actually help your chances. It makes you look more prepared and less risky.

So the next time you prep for a bank loan, remember: lenders see more than just your score. If you’re worried about any of these areas, tidy up your finances before you hit submit. It can make a real difference in getting approved—or even lowering your interest rate.

Tips for Getting Approved

Banks want to feel confident you’ll actually pay back a personal loan. There are steps you can take that make you look like a solid bet, even if your credit score isn’t perfect. Here’s what helps.

• Check your own credit report first. Before sending out an application, look for any errors in your records. Dispute mistakes—old debts or random collections can bring your score down and hurt your shot at getting approved.
• Pay down your high balances. If your credit cards are maxed out, banks see you as risky. Many lenders like to see your credit usage under 30% of your total credit limit. Even paying off a few hundred bucks can bump your score up in a month.
• Don’t apply everywhere at once. Every time you apply for a bank loan, it’s a hard pull on your credit. A bunch of applications at the same time can make you look desperate. Space them out if you can.
• Show your income. Lenders care about your ability to pay. Have pay stubs, tax returns, or even direct deposit statements ready to prove what you bring in every month.
• Consider a co-signer. If your credit score is below 620, having someone with stronger credit sign on can help get you approved and snag a better interest rate. Just remember, if you miss payments, your co-signer is on the hook.

It’s not all about the score. Most banks also use “debt-to-income ratio” to decide if you can handle a new loan. If you earn $3,000 a month and pay $1,000 toward debts already, that’s a 33% DTI—a sweet spot for most lenders. Big banks usually want DTI below 36%.

No matter where you land, remember: sometimes small tweaks—like fixing a reporting error or paying off that extra balance—can get you over the line for loan approval and even lower your rate.