What Credit Score is Needed for a Personal Loan?
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Personal loans can be a smart way to consolidate debt, cover emergency expenses, or finance a major purchase. But before you apply, it’s essential to understand how your credit score affects your eligibility. So, what credit score do you need for a personal loan? The answer isn’t one-size-fits-all. Different lenders have different requirements, and your credit score can significantly influence the loan amount, interest rate, and repayment terms you’re offered. In this blog, we’ll break down what credit scores mean, what score ranges lenders typically look for, and tips to boost your chances of approval. Understanding Credit Scores Credit scores are three-digit numbers that represent your creditworthiness. The most commonly used model is the FICO® Score, which ranges from 300 to 850. This number is calculated based on several factors: Payment history (35%) – Do you pay your bills on time? Credit utilization (30%) – How much of your available credit are you using? Len...