An Equifax credit score of above 750 is considered to be a good credit score for a personal loan. Most lenders check an individual’s credit score in order to judge their creditworthiness. So, if you have a credit score of above 750, it reduces your risk factor to the lender as you will be considered a creditworthy customer. This will improve your chances of personal loan approval and also fetch you a lower interest rate.
Why is a 750+ credit score important for a personal loan?
Low interest rates – Having a 750+ credit score can get you the lowest interest rates in the market as the lender will find you creditworthy and reliable.
Low chance of rejection – If you have a 750+ credit score, the chances of a personal loan rejection are very minimal. This can be very beneficial as a loan rejection can further negatively impact one’s credit score.
Fast approvals – Personal loans are very quickly approved by the lenders if one has a 750+ credit score as they will consider the customer to be very reliable. So, they will sanction a personal loan quickly.
A credit score is calculated based on past credit transactions, credit mix, utilization ratio, credit history and hard enquiries.
So, be sure to take a free credit score check here and know your Equifax credit score before applying for a personal loan.