It’s one of the first questions people ask when they need to borrow money: “Is my credit score good enough?” The concern makes sense, as your credit score is a key factor lenders use to determine eligibility and set interest rates.
The direct answer is that there is no single, universal credit score required for a personal loan. Different lenders have different standards. However, understanding where your score falls within the common credit ranges can give you a clear idea of what to expect and how to prepare.
This guide breaks down the credit score tiers, explains why the score is only one part of the picture, and shows you how to approach applying for a loan with confidence.
Understanding Credit Score Ranges
Most lenders in the United States use FICO or VantageScore models, which typically range from 300 to 850. Here’s a general breakdown of what those numbers mean for a personal loan application.
- Excellent Credit (800 to 850): Applicants in this range are seen as very low-risk. They are likely to be approved by most lenders and will be offered the lowest available interest rates and most favorable terms.
- Very Good Credit (740 to 799): Borrowers with very good credit are also considered low-risk. They can expect to be approved for a loan with competitive interest rates, though perhaps not the absolute lowest on the market.
- Good Credit (670 to 739): This is the range where a majority of Americans fall. A score in this tier generally makes you a solid candidate for a personal loan from a wide variety of lenders, including banks, credit unions, and finance companies.
- Fair Credit (580 to 669): Applicants in the “fair” credit range may have a more limited history or a few past credit missteps. While some traditional banks may be hesitant, many lenders, including United Finance, specialize in working with borrowers in this tier. You can still be approved, but the interest rate offered will likely be higher than for those with good credit.
- Poor Credit (300 to 579): A score in this range indicates significant credit issues in the past. Securing an unsecured personal loan can be challenging, but it is not impossible. Lenders will focus heavily on other factors, such as your income, recent payment history and collateral.
Why Your Score Is Just One Part of the Story
Your three-digit credit score is a snapshot, but it doesn’t tell a lender everything they need to know. Reputable lenders look at your complete financial picture to assess your ability to manage a new loan.
This is especially true at a community-based lender like United Finance. While many approved customers have scores of 600 or higher, it is not a strict cutoff. United Finance’s review process is holistic and considers several other key factors:
- Income and Ability to Repay: Do you have a steady, verifiable source of income? Lenders want to see that you have enough cash flow each month to cover your existing bills plus the new loan payment.
- Employment History: A stable job history can show lenders that your income is reliable.
- Debt-to-Income (DTI) Ratio: This is the percentage of your gross monthly income that goes toward paying your monthly debt payments. A lower DTI suggests you have more capacity to take on a new payment.
- Recent Credit History: Lenders often place more weight on your financial habits in the last 12-24 months than on mistakes from many years ago.
- Collateral: Adding collateral — something of value you own, such as a car, ATV or boat makes a loan easier to qualify for.
How to Prepare Your Application, No Matter Your Score
Taking a few simple steps before you apply can make the process smoother and help you understand your options.
- Know Where You Stand:
Before you do anything else, check your credit score. You can get a free report from official sites like AnnualCreditReport.com or through many credit card issuers and banking apps. This knowledge prevents surprises and helps you know what to expect. - Gather Your Key Documents:
The application process doesn’t require a mountain of paperwork. Typically, you will need:
- A valid photo ID
- Proof of your income (like recent pay stubs or bank statements)
- Proof of your address (like a recent utility bill)
- Vehicle title – secured loans only
- Define What You Need:
Be clear on your goal. Know the amount of money you need to borrow and have a rough idea of the monthly payment you can comfortably afford. This allows you to have a direct and productive conversation with a loan officer.
A Clear Path Forward
Your credit score is an important number, but it is not the final word. Lenders, especially local ones in communities like Vancouver, Tacoma, and Medford, are often more focused on your current financial stability and your ability to make consistent payments.
By knowing your score, gathering your documents, and being clear about your needs, you can approach the process with confidence. Even if your score is in the fair or poor range, an open conversation with a loan officer can help you find a responsible path forward.
Ready to See Where You Stand?
Explore your personal loan options. You can start an application online, call your nearest United Finance branch, or visit in person for a direct conversation.