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.
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.
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.
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.
The best representative APR on the market for loans starts from 6.1%.
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:
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:
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:
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
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:
In order to borrow responsibly, there are a few reasons you should avoid using a loan for:
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