Personal Loan Requirements

To qualify for a personal loan, lenders typically require applicants to meet certain credit, income, and debt requirements^[4].

Credit Score: Most lenders require a minimum credit score between 580 and 640, though some may approve applicants with scores as low as 550 or even 300 depending on the lender^[1]^[2]^[3]^[4]^[5]^[6]. However, to receive favorable loan terms and lower interest rates, a credit score in the range of 670+ (“good” or better) is generally preferred^[1]^[3]^[7].
Proof of Income: Lenders require documentation demonstrating you have sufficient income to repay the loan. Common documents include recent pay stubs, bank statements, or tax returns^[4].
Debt-to-Income (DTI) Ratio: Most lenders look for a DTI ratio below 36% to 50%. This ratio measures the portion of your monthly gross income that goes toward debt payments^[4].
Employment Verification: Verification of stable employment or a steady source of income is almost always required^[4].
Other Factors: Lenders may also consider your payment history, length of credit history, and overall creditworthiness^[7].

Applicants with lower credit scores may still qualify for a personal loan but will likely face higher interest rates, lower loan amounts, and stricter terms. Some lenders may allow co-signers or require collateral for secured loans as alternative options for those with poor credit^[6].

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