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Credit Score for Personal Loan Approval
7 Feb 2019

What’s a Good Credit Score for Personal Loan Approval?

Do you know your credit score? If not, you’re not alone. A whopping 59.1 percent of Americans are in the same boat.

Not knowing your credit score is common, but that doesn’t necessarily mean it’s a good position to be in. After all, if you don’t know your credit score, how are you supposed to know if you qualify for a personal loan?

Are you unsure if you have a high enough credit score for personal loan approval? If so, keep reading. Below are some tips on how you can learn your credit score, as well information on what constitutes a good score.

How to Learn Your Credit Score

First things first, let’s go over what you need to do to learn your credit score. It’s actually not as difficult as many people think.

Most banks and credits unions can tell you your credit score online. If you want a really accurate number, though, you’ll want to request a copy of your credit report.

The Federal Trade Commission actually provides you with one free copy of your credit report each year. You simply have to order it online or over the phone.

What is a Good Credit Score for Personal Loan Approval?

Once you’ve learned your credit score, how do you determine whether or not it’s a good one? The basic credit score ranges look like this:

  • 300-579: Very poor
  • 580-669: Fair
  • 670-739: Good
  • 740-799: Very Good
  • 800-850: Exceptional

If your credit score is “Fair” or above, you have a good chance of getting approved for a loan. If your score is considered to be “Very Poor,” you can still get approved in some cases, but you may have to pay a deposit or accept a loan with very high interest rates.

How to Raise Your Credit Score

You can get approved for a loan with a “Very Poor” or “Fair” credit score. But, that doesn’t mean you shouldn’t try to raise your credit score. Remember, the better your score, the more money you can borrow and the better the terms of your loan.

How do you raise your credit score? Some simple steps you can start implementing today include:

  • Start paying down your debt
  • Set up reminders or automatic payments so your bills always get paid on time
  • Keep your credit utilization (the amount you charge compared to your credit limit) low
  • Consolidate your credit card debt

Stick to these strategies for a few months and you’ll likely see a significant increase in your credit score.

Get Approved for a Personal Loan Today

Now that you know what is considered to be a good credit score for personal loan approval, it’s time to get to work.

Whether you need to get a copy of your credit report and learn your score or work on paying down your debt to improve it, there are lots of things you can do to ensure you get approved for a personal loan.

When you’re ready to apply for a personal loan, we can help at Bonsai Finance.

We offer a variety of different loan options, including loans for folks with bad credit. Apply for a loan today to see what we can offer you!