What credit score do I need for a personal loan?

If you’re thinking about applying for a personal loan, you may be wondering what kind of credit score you’ll need.

The truth is, there’s no set number that guarantees you’ll be accepted, because lenders don’t actually see your credit score. Instead, it’s the information on your credit report they review.

A higher score can be a helpful guide, as it reflects stronger credit health. But when it comes to a decision, lenders will look at the bigger picture – things like how you’ve managed credit in the past, any current debts, and whether repayments look affordable.

Why credit scores matter when applying for a personal loan

Credit scores definitely matter.

Lenders use the information on your credit report to assess risk (likelihood of repayment), with a higher score equalling a lower risk, and vice versa. People with a higher score are also likely to get more favourable loan terms.

Some of the perks include:

• Lower interest rates: The better your credit score is, the lower the interest rate. Lenders actually use risk-based pricing to decide personal loan interest rates.

• Reduced fees: Unless you read the terms and conditions of a personal loan, you might not notice this one included, but some lenders include an origination fee and deduct it from your loan amount. The better your credit score, the more likely you are not to have this fee charged up-front.

• The amount they will lend you: If you've ever applied for a specific loan amount, say £5,000, and your credit score (and the other factors we mentioned, like credit history and income) doesn't meet the requirements for that loan amount, you might sometimes be offered a lower amount, like £3,000, with higher interest fees.

• Better repayment terms: Lenders are less likely to offer you loans with a longer repayment term. If your credit score is low, they'll ask you to pay it back quicker.

So, as you can see, a good credit score definitely does matter.

According to the latest data from MoneySupermarket, the average household personal loan debt increased from £5,545 in 2024 to £5,711 in February 2025. That's a record-breaking high, and it doesn't include student loans.

Millions of people are taking out personal loans to cover everything from holidays to buying a new car, and every single UK applicant goes through a rigorous credit check before being accepted for a personal loan.

What credit score do you need for a personal loan in the UK?

The higher your credit score, the more likely you are to be approved. And as we've said, there’s no universal score, with UK lenders reviewing your credit file rather than one number on the scale.

They're looking at:

• Payment history.

• Existing debts.

• Credit utilisation.

• Public records (for example, CCJs).

The affordability checks they perform are equally important (income and expenses).

Does a personal loan affect your credit score?

Initially, there’s a chance your credit score could take a slight dip because lenders will perform what's known as a ‘hard search’, meaning they make a search of your entire available credit history rather than a soft search, which only looks at a preliminary review of your credit report that does not affect your credit score.

But don’t worry. It’s likely to only be a temporary dip.

On-time repayments are a great way to improve your credit score, 0 and they stay on your credit file for 6 years from the date of the account closure.

How to get a personal loan with low credit

Even with a low credit score, you  may still qualify for a personal loan, but you could be offered higher interest rates.

The practical options you have are:

• Apply to lenders that specialise in loans for people with low credit scores.

• Consider a guarantor loan (someone with good credit backs you).

• Look into secured loans (backed by an asset, for example, a car). 

• Use eligibility checkers to assess your options. They do a soft search that has no impact on your score.

Remember that no matter what your score is right now, there are steps you can take to improve it over time. At Checkmyfile, you see all your info from Experian, Equifax, and TransUnion in one place. It’s the most detailed credit report you can get.

Identify opportunities to improve your number and, if you spot something that doesn’t look right, our UK-based customer care team can help. Get started with a 7-day free trial. It’s then £14.99 a month – cancel online anytime.

Ways to improve your credit score before applying

Responsible borrowing and improving your credit profile can increase approval chances. 

Some of the ways you can improve your credit score before applying include:

• Make credit repayments on time every month. These will positively contribute to your score.

• Monitor your credit utilisation and avoid using too much if you can. Credit utilisation is how much of your available credit you’re using. Lenders could perceive using too much of this as a sign you’re reliant on credit, which could make you more of a risk to lend to as you might struggle to pay back further debt.

• Check your credit report for any errors and correct them.

• Register on the Electoral Roll (important in the UK).

Know your file

Understanding your credit health is key to improving your credit score and hitting your financial goals. With Checkmyfile, you get the most detailed credit report out there, with your info from Experian, Equifax, and TransUnion in one place. See where you stand today.