How to get a personal loan: Requirements and how to qualify

There’s no universal credit score needed to get a personal loan, but individual lenders often require a score of at least 580 — meaning you’ll need fair credit to qualify. However, there are exceptions. Some lenders, such as Upstart, don’t have formal minimum credit score requirements.

Many banks, credit unions, and online lenders offer personal loans. You might consider applying for a loan from your current bank or credit union — in some cases, this can qualify you for a loyalty rate discount.

Yes, the hard credit check when you formally apply can temporarily reduce your credit score. Thankfully, your score will likely bounce back in just a few months. You can also see a favorable impact to your credit as you make consecutive, on-time payments. Plus, this positive payment history can help you qualify for future credit applications by demonstrating responsible management of debt.

Your personal loan payment history and details will stay on your credit report for up to 10 years after the loan is paid off.

It depends on your goals. A personal loan tends to be better for paying off existing debt because of the fixed rate and payoff date. Interest rates on personal loans are also often lower. A credit card, on the other hand, is generally better for everyday spending and rewards.