Please note: You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.
Late repayments can cause you serious money problems. See our debt help guides.
Personal loans for good credit
Find the most competitive loan rates in the UK for high credit scores.
Updated
Fact checked
Do you have a good credit score and in the market for a personal loan? Use our table below to compare some of our top personal loans.
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- How important is your credit score for a loan?
- What is classed as a good credit score?
- What is a good interest rate on a personal loan?
- What should I look for in a personal loan?
- How can I improve my chances of being approved?
- What will I need in order to apply?
- What can I use a personal loan for?
- Frequently asked questions
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How important is your credit score for a loan?
Whether you want to make upgrades to your house or pay for your dream wedding, a higher credit score could allow you access to some of the top rates from lenders. However, credit score isn’t everything. There are additional factors that lenders consider when making loans, such as your income and job security, your current and historical financial circumstances and your terms of application.
What is classed as a good credit score?
Depending on the credit reference agency (CRA), a good credit score can be anywhere between 628-1,000. In the UK we have 3 main CRAs, Equifax, Experian and TransUnion, we have broken down the credit score bands as follows:
| Score band | Rating | What it means |
|---|---|---|
| 811–1,000 | Excellent | You’re very likely to be approved for competitive credit offers. |
| 671–810 | Very good | You’re likely to be approved for credit, but won’t necessarily be offered the very best interest rates. |
| 531–670 | Good | You should be offered credit at reasonable interest rates, but may have a low initial credit limit. |
| 439–530 | Fair | You have a chance of being approved for credit, but are likely to be charged a high interest rate and have a low limit. |
| 0–438 | Poor | It’s likely your credit application will be rejected. |
| Score band | Rating | What it means |
|---|---|---|
| 961–999 | Excellent | You could be in line for the best loan interest rates. |
| 881–960 | Good | You could get most, though not all, of the best deals. |
| 721–880 | Fair | You should have access to loans with reasonable rates of interest. |
| 561–720 | Poor | You may get accepted for a loan, but with higher interest rates. |
| 0–560 | Very poor | You may be rejected for a loan or find it hard to get one without very high interest rates. |
| Score band | Rating | What it means |
|---|---|---|
| 628–710 | Excellent | You’re very likely to be approved for competitive credit offers. |
| 604–627 | Good | You’re likely to be approved for credit, but won’t necessarily have the best interest rates. |
| 566–603 | Fair | You should be offered reasonable interest rates, but are likely to have a low credit limit. |
| 561–565 | Poor | You have a chance of being approved for credit, but are likely to be charged a high interest rate and have a low limit. |
| 0–550 | Very poor | It’s highly likely your credit application will be rejected. |
Your credit score isn’t always the only thing lenders look at when considering applicants. If you have a good-excellent credit score and have been refused a loan, find out what you can do with our helpful guide.
What is a good interest rate on a personal loan?
Generally, when you’re looking at interest rates for a personal loan the consensus is that the lower the percentage, the better the rate – or at least lower than the UK average. However, this doesn’t mean that this is the best rate on the market. A personal loan could have an extremely low interest rate but comes with an array of additional charges. When looking at applying for a loan it is always wise to look at both the interest rate and the APR.
The APR considers all the additional factors (including the interest rate) that the borrower will have to pay annually. Typically the APR and interest rate will be the same if there are no additional charges.
Lenders will provide a representative APR, which is the APR that a lender realistically expects 51% of its customers to receive. However it is good to note, even if you have a first-class credit score you could still be offered a tailored (“risk-based”) rate if your application is successful.
At the time of writing (March 2022), the best representative APR on the market for loans of £7,500 borrowed for 3 years starts from 2.8%.
What should I look for in a personal loan?
Other than interest rates and APRs, there are some additional factors to consider when looking to apply for a loan. Here are some key questions to ask yourself:
- Are the interest rates competitive? Compare different personal loans and find the best deal that works for you.
- Are there any extra fees? Are there any late repayment or overpayment charges?
- Can I borrow the amount I want and for how long?
- Can I afford to take out this loan? This is a pretty important question to ask yourself when deciding to borrow money. Can you afford the monthly payments? Late repayments can cause you serious money problems and potentially lead to the repossession of your home. See our debt help guides for more information.
- Am I eligible? You could have a top-notch credit score and still not be a successful applicant. Many lenders borrow to UK-only residents within specific age ranges. You can check your eligibility using our free personal loan eligibility checker.
- Can I make overpayments or repay the loan early? If you want to clear your debt quicker, some lenders allow you to overpay each month or even repay your debt before your loan term contract expires. But, make sure you read the fine print as this often comes as an extra cost.
How can I improve my chances of being approved?
You could have an excellent credit score of 999 and still struggle to get a loan. Here are some tips to help you improve your chances of getting approved by lenders:
- Check you’re registered on the electoral roll.
- Repay existing debt.
- Check your credit report is correct and up-to-date.
- Avoid changing jobs before you apply.
- Avoid changing your residential address.
- Use an eligibility checker before you apply.
Will you be approved?
Check your personalised rates and likelihood of acceptance.
What will I need in order to apply?
Whether you’re ready to apply for a personal loan or still in the process of research, it is good to know what documents you will need to provide to lenders.
In order to lend responsibly, lenders will need:
- Proof of identification.
- Proof of address.
- Proof of affordability.
Vast majority of lenders will verify your identity and address electronically through a credit reference agency (CRA) like Experian. In this case, you may need to answer some questions that only you would know the answer to.
If you are applying for a loan directly through a branch or if the CRA database does not hold any information on you, you may need to prove your identity by providing a photo of yourself, plus a photo of the identification page of your passport (or another acceptable form of ID). The lender will then be able to verify your documents in person or through technology provided by a CRA.
The documents needed to apply for a personal loan
What can I use a personal loan for?
Need to get the builders in or spread the cost of your dream wedding? Personal loans can be used for an array of reasons. Here is a list of some common reasons to take out a personal loan:
- Buying a new car
- Paying for a wedding
- Home improvement
- Buying furniture
- Paying for a holiday
- Consolidating debt
In order to borrow responsibly, there are a few reasons you should avoid using a loan for:
- A deposit on a property
- Gambling
- Business purposes
- Share dealing
Frequently asked questions
- Taking out a personal loan will not hurt your credit score, however, if you don’t repay your loan in time each month, this can have a negative impact on your credit score.
Late repayments can cause you serious money problems and potentially lead to the repossession of your home. See our debt help guides for more information.
- Your credit score is one of many factors that lenders consider when reviewing your application.
- There is no set credit score limit to get a loan, but your likelihood of being a successful applicant is based on how creditworthy you are. There are other factors that lenders consider when reviewing applicants.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.
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Emily Herring is a Publishing Executive at Finder specialising in credit-based products including credit cards and business and personal loans. Emily has a Masters in Creative Writing & Publishing and a Bachelor of Arts in Communication & Media.
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