What Are the Requirements for a Personal Loan? - NerdWallet (2024)

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What is the basic criteria for personal loan? ›

You need to be between the ages of 21-60 years. You need to have a job for at least two years, with a minimum of 1 year with your current employer. You need to have a net income of 25,000 per month.

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You generally need to have a credit score above 580, an income above $2,000 per month, and be employed, self-employed, or receiving benefits. You can request a loan amount of between $250 and $35,000.

To qualify for a personal loan, borrowers generally need a minimum credit score of at least 580 — though certain lenders have even lower requirements than that. However, your chances of getting a low interest personal loan rate are much higher if you have a “very good” or “excellent” credit score of 740 and above.

This allows them to look at your history from the past seven years and see whether you've typically made payments on time. For a $30,000 loan, you'll typically need a credit score above 600 just to qualify or above 700 to get a competitive rate.

What disqualifies you from getting a personal loan? Personal loan denials vary, but the most common reasons relate to your credit score, credit history and income. Prospective borrowers who have poor, damaged or no credit typically find it difficult to qualify for a personal loan.

While nearly all personal loans incorporate income as a component of the application process, lenders may vary in their minimum income requirements; one lender may require a minimum annual income of at least $25,000 while another may state a minimum annual income of $35,000.

Requirements will vary across lenders. However, qualifying for a $10,000 personal loan typically requires a credit score that exceeds 640, an active checking account, and a steady, verifiable income, among other factors.

Know your credit history: Because $60,000 is such a large sum of money and there are fewer lenders that offer such large loans, you'll find it's harder to qualify for. You'll typically need good or excellent credit (a FICO score of 670 or higher) and may need to meet certain income requirements.

For a $250,000 home, you'll likely need a fair to good credit score: 740+: Best rates and terms. 680-739: Good rates, still very good affordability. 620-679: Higher rates, may require larger down payment or FHA loan.

Your credit score, income and debt are usually evaluated by personal loan lenders to see if you qualify. Some lenders may also consider your work history or education.

What credit score is needed for a $35000 personal loan? ›

For other types of credit, such as personal loans, student loans and retail credit, you'll likely want to know your FICO^® Score 8, which is the score most widely used by lenders.

If you have bad credit, your options for getting a $70,000 personal loan are more limited. Most lenders require a credit score of at least 670, and criteria may be strict for this large loan amount. That doesn't mean you're out of options.

The difficulty of getting approved for a $20,000 loan will depend on a particular lender's requirements and your personal creditworthiness. If you have a credit score under 650 or the minimum amount required by a lender, you may have trouble getting approval for a $20,000 loan.

Income: Lenders like to see that you have a steady and reliable income source, like a salary or full-time hourly job, to prove you can make your monthly payments. Payment history: Lenders typically reward you with a lower interest rate if you've managed your credit without late payments.

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals. Let's take a closer look at each category.

When applying for a personal loan, you must provide personal and financial information, including proof of identity, income and address. Lenders generally request information about your credit score, loan purpose and monthly expenses to determine your eligibility and loan terms.

The main factor in determining if you qualify for a $10,000 personal loan is your credit history. You'll need a credit score of at least 670 before you apply. Lenders look at your debt-to-income ratio when deciding approval. A DTI ratio of 36% or lower is ideal.