In general, a personal loan refers to a small loan that borrowers can spend as they see fit. It can be useful for making big purchases or consolidating high-interest debts.
Taking out a personal loan can be a great way to pay for large purchases or consolidate high-interest debt. But before applying, it’s important to understand what credit score you’ll likely need to qualify. In this comprehensive guide, we’ll break down the key credit score requirements and recommendations for getting approved for a $15,000 personal loan from top lenders.
Overview of Credit Score Requirements
For a $15,000 personal loan, most lenders want you to have a credit score in the fair range, which is around 660. But some lenders may still let people borrow money with scores as low as 580.
Here are the typical credit score requirements by lender
- Citizens Bank – 680
- Citibank – 680
- SoFi – 680
- Discover – 660
- Citizens One – 680
Even though the minimum score is around 660, a higher score will make it more likely that you will be approved and get better loan terms. For instance, borrowers with scores of 740 will be able to get the best rates.
How Your Credit Score Impacts Loan Terms
Your credit score doesn’t just determine whether you’ll get approved. It also affects the loan terms you’ll be offered.
Interest rate – Borrowers with higher scores qualify for lower interest rates, which saves significantly on interest charges over the life of the loan.
Loan amount – Applicants with higher credit have access to larger loan amounts. With a 660 score, you may only be approved for $5,000, while a 740 score may qualify you for the full $15,000.
Length of term: People with lower credit scores usually have to pay back loans faster. If you get a higher score, you can choose from more flexible 3–5 year options.
Fees – Some lenders charge origination fees. Part of the fee you pay, or whether you pay one at all, is based on your credit score.
Minimum Credit Score Needed by Major Lenders
Here is an overview of the minimum credit scores required by top national lenders offering $15,000+ personal loans:
| Lender | Minimum Credit Score |
|---|---|
| Lightstream | 660 |
| SoFi | 680 |
| Marcus by Goldman Sachs | 660 |
| Payoff | 640 |
| Best Egg | 640 |
As you can see, applicants with scores of 640 and above meet the minimum requirements for most major lenders. But shooting for at least a 680 score is recommended if you want the best approval odds and lowest rates.
Options for Borrowers with Lower Credit Scores
If your credit score is under 640, getting approved for a $15,000 personal loan will be challenging but not necessarily impossible. Here are some options to consider:
- Apply with a creditworthy cosigner
- Consider a secured loan backed by collateral
- Look for lenders that offer loans for bad credit
- Work on improving your credit before applying
A secured loan or cosigner can help compensate for the higher risk posed by lower scores. Alternatively, you may need to take some time to boost your credit before applying.
Tips for Improving Your Credit Score
Building your credit score takes time, but here are a few tips to get started:
- Make all payments on time – payment history is a major factor
- Keep credit card balances low
- Limit credit inquiries by only applying for needed credit
- Check credit reports for errors and dispute any found
- Sign up for credit monitoring to stay on top of your score
With responsible credit habits and monitoring, you can quickly improve your score by 50-100 points or more within 6-12 months.
Alternatives If You Can’t Qualify for a Personal Loan
If your credit simply isn’t ready for a $15,000 personal loan, here are some alternative borrowing options to consider:
- Take out a smaller personal loan that matches your credit limits
- Use a 0% balance transfer credit card to consolidate debt
- Borrow against your home equity if you’re a homeowner
- Ask friends or family for a personal loan with set repayment terms
- Save up and pay in cash rather than taking on debt
While paying cash is always ideal, sometimes borrowing makes sense for major expenses. The key is choosing an option that matches your budget and credit profile.
The Takeaway
A credit score of at least 660 and preferably 680+ gives you the best shot at qualifying for a $15,000 personal loan. The higher your score, the better the interest rate and overall loan terms will be. With responsible credit management over time, building your score into the good or excellent range (680+) is an achievable goal before applying.
Alternatives to personal loans
Before you take out a personal loan, it might be worth considering other options too. Here are some potential alternatives:
When used responsibly, a credit card can be a useful alternative to a personal loan. If youâre looking for options, you can see whether youâre pre-approved without affecting your credit scores. If you have a credit card, you might have options like:
- Balance transfers: A balance transfer lets you move debt to a new or different credit card. It could help you combine your loans at a lower interest rate. But be sure you understand how it works and whether there are any fees or restrictions.
- Cash advances: A cash advance is similar to using a debit card to get cash. But instead of the money coming from your bank account, itâs taken from your available credit. Cash advances can be convenient, but they often come with fees and a higher interest rate than credit card purchases.
Companies that connect lenders and borrowers through online services could be another possibility. P2P lending companies might vary in how they review lenders and borrowers, including whatâs required to qualify for a loan. The CFPB recommends that you make sure you understand all fees and interest charges associated with these types of loans.
You could also consider talking with a qualified financial adviser.
How do your credit scores impact a personal loan?
Your credit scores can affect whether you qualify for a personal loan. Thatâs because in the eyes of a lender, the higher your credit scores, the less risky you are as a borrower.
Aside from eligibility, your credit scores may also impact:
- Interest rate: The better your credit scores, the better your interest rate might be.
- Loan amount: You may qualify for a larger loan with higher credit scores.
- Term length: With a fair credit score, you may only have the option of a short-term loan.
- Fees: Some lenders charge whatâs known as an origination fee to cover the cost of processing the loan application. Whether youâre charged one or how much youâre charged might depend on your credit scores.
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FAQ
What credit score do I need for a $15,000 personal loan?
You will likely need a credit score of at least 660 for a $15,000 personal loan. Many lenders don’t state a minimum required credit score because they will vary the terms for each borrower depending on their credit history. The higher your score, the more money you can qualify for and the better the interest rate.
What is a good credit score for a personal loan?
The typical minimum credit score needed to qualify for a personal loan is from 550 to 660, according to lenders surveyed by NerdWallet. This range is considered “fair” credit by common scoring models. However, credit score requirements for personal loans vary across lenders, and some may require a higher score.
Is a $15,000 personal loan a good idea?
If you have good credit, a $15,000 personal loan may be a better way to borrow money than credit cards. For consumers with bad credit, the higher interest rate may make a $15,000 personal loan less attractive. SoFi offers competitive personal loans.
Do you need a 850 credit score for a personal loan?
Thankfully, a perfect 850 credit score isn’t necessary for most people to have when it comes to approval for personal loans or credit cards. But there are some other guidelines and requirements you should be aware of before applying for a personal loan.
Can I get a 15K personal loan with bad credit?
Acorn Finance can help all credit types qualify for a $15,000 personal loan. How can I get a $15K personal loan with bad credit or instantly? There are several financial institutions that offer $15K personal loans. To get a $15K personal loan, you’ll probably need to apply. So where should you apply?.
Can I get a $15,000 personal loan if I have bad credit?
If you are looking for a $15,000 personal loan, you should explore your options. If you have excellent credit you may be able to qualify for all of the sources listed below. However, if you have bad or decent credit we recommend you use an online lender. In most cases, online lenders are the easiest to qualify for.
What credit score is needed for a $15,000 loan?
Generally, a credit score of 670 or higher (considered “Good” credit) is recommended for a $15,000 personal loan, but many lenders offer loans to those with lower scores, though the terms may be less favorable.
What credit score do you need to get a $10,000 loan?
Usually, you need a credit score of at least 670 to get a $10,000 personal loan. However, some lenders may give loans to people with lower scores, though the interest rates may be higher.
What credit score do you need to get a 20k loan?
Here’s a closer look at what it takes to apply for a personal loan. A minimum credit score of 670 to 739 is typically required for a $20,000 personal loan. Jan 3, 2025.
How much of a loan can you get with a 580 credit score?
Personal Loans for Credit Scores 580 and Lower: UpstartAvant Personal Loans requires a credit score of at least 300, but will also accept applicants with poor credit history. Loan amounts range from $1,000 to $50,000, with terms of 36 to 60 months and no early payment penalties.