There's no number that guarantees acceptance, because lenders don't see your credit score. They review the information on your credit report.

A higher score is a helpful guide, reflecting stronger credit health. But the decision comes from the bigger picture: how you've managed credit, your current debts, and whether repayments look affordable.

Why credit scores still matter#

Lenders use your report to assess risk. Higher score, lower risk — and more favourable terms.

Lower interest rates. Lenders use risk-based pricing to set personal loan rates, so a better score means a better rate.

Reduced fees. Some lenders charge an origination fee, deducted from the loan amount. It's easy to miss unless you read the terms. A better score makes it less likely you'll be charged one up front.

The amount they'll lend. Apply for £5,000 and, if your score and other factors don't meet the requirements, you might be offered £3,000 instead — with higher interest.

Better repayment terms. With a low score, lenders are less likely to offer a long repayment term and will want the money back faster.

For context, MoneySuperMarket (opens external site) reports that average household personal loan debt rose from £5,545 in 2024 to £5,711 in February 2025 — a record high, and that excludes student loans.

What lenders actually look at#

There's no universal score. UK lenders review your file, looking at:

  • Payment history
  • Existing debts
  • Credit utilisation
  • Public records, such as CCJs

The affordability checks on your income and expenses matter just as much.

Does a personal loan affect your score?#

Initially, your score could dip slightly, because lenders perform a hard search — a look at your entire available credit history, rather than a soft search which is only a preliminary review and doesn't affect your score.

The dip is likely to be temporary.

On-time repayments are a strong way to improve your score, and they stay on your file for six years from the date the account closes.

Getting a loan with low credit#

You may still qualify, though you could face higher interest rates. Practical options:

  • Apply to specialist lenders who work with people with low credit scores
  • Consider a guarantor loan, where someone with good credit backs you
  • Look into secured loans, backed by an asset such as a car
  • Use eligibility checkers, which run a soft search with no impact on your score

Improving your score before applying#

  • Make repayments on time every month. These contribute positively.
  • Monitor your credit utilisation. Using too much suggests reliance on credit, which makes you riskier to lend to.
  • Check your report for errors and correct them.
  • Register on the Electoral Roll — genuinely important in the UK.

The key things to remember#

  • No minimum score exists; lenders read your report, not your number.
  • A stronger report brings lower rates, larger amounts and longer terms.
  • Some lenders charge an origination fee deducted from the loan.
  • Average UK household personal loan debt hit £5,711 in February 2025.
  • A hard search causes a temporary dip; on-time repayments stay six years.
  • Specialist lenders, guarantor loans and secured loans are all routes with low credit.
  • Eligibility checkers use soft searches and cost you nothing.