Personal Loans with Good Credit Score
Borrowers with good credit scores have access to multiple personal loan products. They get them at competitive rates with fair terms. Generally, borrowers with a credit score between 690 to 739 can enjoy these advantages.
Armed with your good credit score and the amount of money you want to borrow in mind, personal loans for a good credit score will serve your interests. A good lender will give you excellent loan products and a flexible repayment plan.
In this article, we’ve singled out the top lenders for personal loans for a good credit score. We’ve also covered everything you need to know about personal loans and how to improve your credit score.
- APR
- Amount
- Min Score
Payoff
- 5.99 - 24.99%
- $5,000 - $40,000
- 640
LightStream
- 4.49 - 20.49%
- $5,000 - $100,000
- 660
Marcus
- 6.99 - 19.99%
- $3,500 - $40,000
- 660
- APR range
- Fees
- Terms
- Amounth
- Unemployment protection
Bank 1
- 6.95%–35.89%
- Up to 5% transfer fee
- 3–5 years
- $1,000–$40,000
- No
Bank 2
- 6.95%–35.89%
- Up to 5% transfer fee
- 3–5 years
- $1,000–$40,000
- No
Bank 3
- 6.95%–35.89%
- Up to 5% transfer fee
- 3–5 years
- $1,000–$40,000
- No
Table of Contents
What is a good credit personal loan?
These are loan products for people with a credit score of 690 and above. A good credit score rewards you with low rates, friendly and flexible repayment terms. It may also come with extra benefits such as free credit monitoring.
Good credit also translates to a lower Annual Percentage Rate (APR).
Basically, the better the credit score, the more options you’ll have when it comes to lenders and loan offers.
Since they are also unsecured, good credit personal loans don’t require you to offer collateral to qualify.
Online lenders, banks, and credit unions are the best lenders for good credit personal loans.
However, please note that a good credit score sends a different message to different lenders. And, we can’t tell exactly what the best score, the best rates, or loan terms are in the market.
Further, note that getting multiple loan offers doesn’t always mean you should take just any of them. The rates, loan charges, and terms should dictate which good credit score personal loan you should borrow.
A good credit score sends a different message to different lenders. And, we can’t tell exactly what the best score, the best rates, or loan terms are in the market.
Requirements to qualify
The most basic requirement is having a credit score above 690. You can check your scores by requesting your credit reports from a financial agency of your choice.
Be sure to be doing this as frequently as possible. And, when you notice any errors, notify them immediately so they can correct them. If your scores haven’t met the required threshold, you can boost them by taking the steps we’ll discuss later in this post.
But meanwhile, avoid too many loans that’ll your status more. Further, try not to surpass your credit limits and resist the temptation of closing your unused credit cards.
Another common basic requirement among all lenders is you must have attained the age of majority, usually 18 in most states. You must also be a legal resident of the United States.
Lenders verify this information by looking at your national ID, valid driving license, or your travel passport.
The other details a lender may ask for also include your official names, date of birth, and correct residential address.
If you have a guarantor or co-signor, the lender may also ask for their details. Mainly their personal information including name, address, and proof of income.
If you have to use a co-signor or guarantor, go for one with a stable source of income and a higher income to debt ratio.
What do you need to know about?
If you’re looking to take good credit score personal loans, here are some of the things you should know;
- Rates – lenders set different rates depending on various factors, among them your ability to repay, the stability of income, credit score, et cetera. Our top-picked lenders have an AP rate of between 4.49 and 35.99. However, the rates shouldn’t be your only consideration when going for personal loans. The organization policy and repayment terms are crucial, too.
- Flexibility – Unlike mortgages, personal loans for good credit have no single specific use. You can use the funds for debt consolidation, pay school fees, and, though not recommended, sponsor a vacation. You can also use the cash for home improvement projects, to purchase an asset, or take care of your medical bills.
- Guarantor – You don’t need a guarantor to apply for personal loans for good credit score. However, having one can come in handy when you don’t meet the required credit score. Having one (with a stable income) could mean higher loan limits and higher rates.
- Repayment terms – different financial institutions set repayment terms based on different factors. However, your credit score, repayment history, the stability of income, and income to debt ratio play a major role here. Either way, strive to repay your loans on time to avoid messing up your credit profile.
- Collateral – You can offer a valuable property such as a land, vehicle, or house to act as security for your loan. However, it’s not a requirement unless you have a poor credit score.
Remember, getting any personal loans shouldn’t be a problem, as long as you have a good credit score. Shop around for institutions with better rates and friendly terms. Online banks are best known for this. Traditional banks and credit unions are an excellent choice, too.
The table above has the best banks and credit unions. Be sure to check them out.
Types of personal loans you can get with a good credit score
Here are other personal loan products you could consider if you have a good credit score;
- Home equity loans – Here, you use your home as collateral for your loan. They are known to come with better interests than other loan products. They are an excellent choice especially if you’re looking for larger loan amounts. They mostly come with fixed monthly repayments and take a shorter time to be processed. The only risk with home equity loans is you could lose your home should you fail to make your repayments as agreed.
- Personal auto loans – You can also take this loan product to finance your motor vehicle purchase. The vehicle then acts as security for your loan. Failure to service the loan could lead to it being repossessed. Here, your credit score will determine how much interest you pay. Credit unions are known to have the lowest rates and friendly terms.
If personal loans don’t work for you, then you could try out credit cards. Most of them come with a zero-interest policy for the first 12 to 18 months. This will save you lots of costs especially when making a huge purchase.
A personal line of credit is also an excellent personal loan substitute. It’s especially good if you’re looking to take care of recurrent expenses.
As you contemplate taking a personal loan, consider, first, the purpose of the loan. This will help you make a sound choice.
Also be on the lookout for loan incentives and additional advantages like free educational resources, credit score counseling, and career advice.
If personal loans don’t work for you, then you could try out credit cards. Most of them come with a zero-interest policy for the first 12 to 18 months
How much can you borrow?
This differs from one lender to another. Our chosen lenders offer between $2000 and $100,000.
Lenders set loan limits based on individual credit scores. A higher credit score will not only earn you a larger loan but lower interests and more friendly terms, too.
Strive to have a credit score of 690 and above.
Lenders also consider your repayment history in other loans when setting your borrowing limit.
A solid income and low income-to-debt ratio will also earn you higher loan limits.
You can also boost your loan limit by bringing in a co-signer with a high credit score and strong credit profile. Alternatively, you can also find a guarantor with an excellent credit score to act in good faith.
Remember, they’ll be responsible to clear the loan should you be unable to. Their credit profiles will also be affected should you fail to repay on time. You, therefore, want to be careful before including a co-signor or guarantor.
Getting a valuable property to act as collateral will also have you accessing higher loan limits. However, you risk losing your property should you default on payment.
Can I boost my credit score to Excellent?
Yes. Having a poor credit score isn’t the end of your borrowing journey. You can always boost it by taking certain recurrent actions. Such include;
- Regularly going through your credit reports – Equifax, Experian, and TransUnion give these reports for free. Once you have yours, go through it, identify errors and notify the agency immediately should find any.
- Scale down your loans – avoid taking too many loans. Only go for them when you absolutely have no other way. Also, ensure you can repay the loan you’re borrowing with ease.
- Pay off existing loans – Reduce your loan burden by servicing your existing loans on time. Doing so will have your lender updating your credit profile regularly. Clearing your loans also reduces your income-to-debt ratio –crucial factor lenders take into consideration.
- Keep your old credit accounts open – credit score agencies consider the age of your present accounts. Resist the temptation to close down your unused credit card accounts.
Good credit score guaranteed approval
Having a good credit score opens doors to multiple personal loan products with most lenders.
With a good credit profile, low income-to-debt ratio, and strong income, you’ll not only be guaranteed loans but lower interests and flexible repayment terms.
Target a score of above 690 to qualify for a personal loan for good credit score with most lenders. If yours is below that, you can still build it. Please note that the process might take longer, however, you’ll eventually get there. The above tips will come in handy.
If despite your efforts your score isn’t improving, or you just can’t wait that long, then taking in a co-signor or guarantor will get you a loan with most lenders. Either way, you’re guaranteed a loan when either you or your cosigner or guarantor has a good credit score.
Plus, good credit score loans are unsecured. You didn’t have to put your house, car, or valuable property as collateral.
Frequently Asked Questions (FAQ)
FICO credit scores range from 300 to slightly above 800, usually 850. For personal loans, the rule of the thumb is – the higher your score, the higher your chances of qualifying for a personal loan. The good credit scale ranges between 690 and 719. However, this is mostly different from one lender to another.
Borrowers with a good credit score (690 and above) are eligible for good credit score personal loans. However, lenders have additional requirements for qualification. That includes a low income-to-debt ratio and the ability to repay.
Banks and credit unions are excellent sources of personal loans. They usually come with more friendly requirements, loan terms, and loan limits. Plus, they are also highly accessible and accept such arrangements as having a co-signor and guarantor. The table above has the best lenders in the market today. Be sure to reach out to one.
Yes. A personal loan can help boost your credit score. You only have to ensure you make regular repayments. Every time you do so, the lender updates your credit profile and it goes up with a few points. But that also means late repayments will cost. Just a single late repayment brings you down by 50 points.
Secured loans are the easiest loans to qualify for. Here you offer collateral. You can use your vehicle, home, boat, or any other valuable property to act as security for your loan. However, you risk losing your property should you breach the agreement with your lender.
