When you're looking for a loan, it's important to understand how your credit score may affect your chances of being accepted.

What's a credit score?

Your credit score is a number that, combined with your credit report, helps lenders understand how you manage money. The maximum score varies depending on which credit reference agency you use: Experian's score ranges from 0 to 1,250, while Equifax and TransUnion use different scales.

Your score is calculated using information in your credit report, such as the number and type of accounts you hold, how much of your available credit you've used, your payment history, and the length of your credit history.

There are three main credit reference agencies in the UK: Equifax, TransUnion and Experian. Each one uses its own scoring system, and ClearScore also applies its own banding to your Equifax score, which is why the numbers you see may differ between services.

ClearScore is not a credit reference agency, but we give you your credit score and report for free using data from Equifax. Your score with Equifax may differ from scores provided by other credit reference agencies such as Experian or TransUnion, as each uses its own scoring model. We also show you an estimate of the average score in your country and local area based on our data, which can help put your score in context.

What credit score do you need to get a loan?

Generally, the better your score, the better the personal loan offers you may start seeing. That could include lower interest rates or higher credit limits.

Lenders have specific criteria they'll want you to meet, but having a score in the On good ground (520-604) band or above usually means you'll be more likely to be accepted. That's because your score gives lenders an indication of how well you manage money and whether you'll be able to afford to repay what you borrow.

If you have a bad credit score, you may still be able to get a loan from some specialist lenders, though approval is not guaranteed and terms may be less favourable.

What's a good credit score?

There's no single number that defines a 'good' credit score. At ClearScore, our score bands look like this:

If your score falls into the last three bands, it may indicate you have a good history of managing your repayments on time.

If your score is between 0 and 519, some lenders may still consider your application, but approval depends on the lender's own criteria and affordability checks. It's a good idea to look at ways that may help improve your score before applying.

Many factors affect the types of offers you see and your chances of being accepted, including your income, affordability, credit score and credit report.

Next step: Get your credit score for free, today.

ClearScore score bands explained

Understanding what each ClearScore score band means in practice can help you gauge where you stand before applying for a personal loan. Below is a breakdown of each band and what it typically means for your borrowing options.

0-409 - Let's start climbing

A score in this range suggests your credit history may be limited or contain negative markers such as missed payments, defaults or county court judgements. At this level, most mainstream lenders are unlikely to approve a standard personal loan application. However, some specialist or subprime lenders may still consider you, though interest rates will typically be significantly higher and borrowing limits lower. If your score falls here, it is worth focusing on building your credit profile before applying - registering on the electoral roll, ensuring all bills are paid on time and checking your report for errors are practical first steps.

410-519 - Moving on up

With a score between 410 and 519, you are making progress but may still find that many high-street lenders decline your application or offer less competitive terms. Lenders at this level typically expect to see a consistent recent payment history and relatively low credit utilisation. You may find that secured loan products or guarantor loans are more accessible options while you continue to strengthen your profile. A score of around 480 on ClearScore, for instance, places you in this band and signals to lenders that you are on an upward trajectory but may not yet meet their standard criteria.

520-604 - On good ground

Once your score reaches the "On good ground" band, mainstream personal loan offers start to become more widely available. Lenders are more likely to view your application favourably, and you should begin seeing competitive APRs - though not necessarily the lowest advertised rates. A score of 533 or 584, for example, sits comfortably within this range and suggests a reasonable track record of managing credit. At this level, affordability and income checks become just as important as your score, so ensure your debt-to-income ratio is healthy before applying.

605-724 - Looking bright

A ClearScore score of 605 or above places you in the "Looking bright" band, where you may be able to access more competitive interest rates and higher borrowing limits. Lenders generally consider applicants in this range to be lower risk, which means you are more likely to be offered rates closer to the representative APR advertised. Whether you are looking at a personal loan for home improvements, debt consolidation or a major purchase, this band typically opens the door to a strong range of products. A score of around 600 to 609 on ClearScore sits at the threshold of this band, so even small improvements can make a meaningful difference to the offers you see.

725-1000 - Soaring high

If your ClearScore score is 725 or above, you are generally well-positioned to be eligible for some of the more competitive personal loan deals available. Lenders may be more willing to offer you their lower interest rates, higher borrowing limits and more flexible repayment terms. A score approaching 1000 on the ClearScore scale (which uses Equifax data up to a maximum of 1,000) represents an excellent credit profile. At this level, your focus can shift more towards comparing deals to find the most cost-effective option, though lenders will still assess your full application. Keep in mind that even with a top-band score, lenders will still carry out affordability assessments, so your income and existing commitments remain relevant.

Typical personal loan rates by credit score band

The interest rate you are offered on a personal loan depends on several factors, but your credit score band is one of the most influential. The table below provides illustrative APR ranges based on ClearScore bands. These are representative figures - actual rates vary by lender, loan amount and individual circumstances.

Secured loans, where you put up an asset such as your home as collateral, may offer lower APRs at every band because the lender's risk is reduced. However, this comes with a significant trade-off: if you cannot keep up repayments, your property or asset is at risk. Unsecured personal loans do not require collateral, but rates tend to be higher - particularly for borrowers in the lower score bands. When comparing car loan rates or other specific lending products, the same general pattern applies: a stronger credit score typically unlocks more favourable terms.

Why does your credit score matter?

A better score could mean better offers. That might look like lower interest rates on a loan or a higher credit limit on a credit card.

Lenders want confidence that you can repay the money you borrow, whether that's on a credit card, loan, car finance or mortgage. If you have a good credit score and your report shows a history of making payments on time and in full, lenders may consider it less risky to lend to you.

What other things do lenders look at?

Your likelihood of being approved for a loan, also known as your eligibility, depends on several factors, including:

• Payment history If you have any existing credit, such as a credit card, mobile phone contract, loan or car finance, it's important that you pay back what you owe on time and in full. A missed payment can negatively affect your credit score and report. The extent of the impact depends on factors such as how late the payment is, your overall credit history, and which credit reference agency is calculating your score. The impact will reduce over time, but a significant drop in your score may affect the types of offers available to you and your chances of being accepted for new credit.

• Credit utilisation When you take out a credit card, you're given a credit limit. How much of that limit you use each month is known as your credit utilisation. Keeping your credit utilisation relatively low may help demonstrate responsible borrowing to lenders, though the exact threshold varies by lender and credit reference agency. How you use credit cards, or even your overdraft, can affect your chances of getting a loan. This is because it forms part of your credit report and history, showing lenders how you manage different types of credit. At ClearScore, we show you how much you've used as both a figure and a percentage, so it's easy to keep track of.

• Length of credit history Your credit history builds up as you manage lines of credit, whether that's a loan, phone contract, credit card, car finance or mortgage. Over time, the repayments you make, the accounts you open and close, and other details are recorded in your credit report and make up your credit history. When you apply for a loan, your credit history lets lenders see whether you have a track record of responsibly managing money. If you haven't yet built up a credit history, there are straightforward ways to start building your score from scratch.

• Credit mix This refers to the different types of credit accounts you hold. Lenders generally like to see that you can manage a variety of credit products responsibly over time, such as a credit card alongside a phone contract or loan.

• New credit Applying for several lines of credit over a short period can be a red flag for lenders, as it may suggest financial difficulty. If you've recently taken out a credit card, for example, it may be worth waiting before applying for a loan. There's no fixed waiting period; the right time to apply depends on your individual circumstances and the lender's own criteria.

Credit score expectations by loan type

Different lending products come with different credit score expectations. The type of loan you apply for - whether it is a personal loan, car finance, a secured loan or a guarantor loan - influences both the minimum score lenders typically look for and the other eligibility factors they weigh most heavily. The table below offers a general guide to help you understand which products may be most suitable for your current score band.

Keep in mind that these are general guidelines rather than fixed rules. Every lender sets its own criteria, and your score is only one part of the picture - income, employment status and existing commitments all play a role. If you are unsure which product suits your circumstances, checking your eligibility through ClearScore can give you a clearer idea of the offers available to you without affecting your score.

What personal information will lenders ask for?

You'll need to provide some details about yourself so lenders can check your eligibility. They'll typically ask for:

• Your bank details for the account you want the loan paid into

• Your current address and any previous addresses from the last three years

• Proof of employment and income, so they can assess whether you can afford the repayments

Knowing how to apply for a loan can help speed up your search.

How to get a loan with a bad credit score

If your score falls in the Let's start climbing (0-409) or Moving on up (410-519) bands, you could still get a loan, but you may face fewer options, stricter affordability checks, higher interest rates, or the need to use a specialist lender.

If you do secure a loan and make your payments on time and in full, this may help improve your credit score over time and could open up better offers in the future. Some lenders available through ClearScore may offer secured loans, which could increase your chances of being approved. WARNING: With secured loans, your property or assets are at risk if you cannot keep up repayments.

Here's a representative example from one of our lenders:

Representative example If you borrow £2,000 over 24 months at a fixed rate of 59.9% representative APR: Monthly repayments: £131.05

Total amount repayable: £3,145.20

Total cost of credit: £1,145.20 WARNING: This is a high-cost loan. Missing payments can seriously damage your credit rating and make it more difficult to obtain credit in the future.

Learn more: What's a good interest rate for a loan?

How to help improve your credit score before applying

There are several steps you can take that may help improve your credit score before applying for a loan.

• Register to vote. Being on the electoral roll makes it easier for lenders to confirm your name and address, which can help support your credit profile. This is particularly useful if you're new to credit.

• Pay on time. Making sure all existing credit repayments are paid on time and in full is one of the most effective ways to maintain or improve your score.

• Check your credit report for errors. Incorrect information on your report could be dragging your score down. You can view your credit report for free through ClearScore and raise a dispute if you spot anything that looks wrong.

• Keep your credit utilisation low. Try to avoid regularly using a high proportion of your available credit limit, as this can be viewed negatively by lenders.

• Avoid multiple applications in a short space of time. Each full credit application can leave a hard search on your report, which lenders can see. Too many in a short period may raise concerns.

Through ClearScore, you'll also get access to personalised insights that can help you understand the steps most likely to make a difference to your score.

Alternatives to a personal loan

There are different types of loans and credit products that may suit your needs. It's worth understanding your options before you apply, so you can choose the most appropriate product for your circumstances. For example:

• Credit cards may be suitable for smaller, flexible borrowing, particularly if you can repay the balance each month.

• Secured loans use an asset, such as your home, as collateral. They may offer lower interest rates but carry greater risk. WARNING: YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

• Guarantor loans involve a third party agreeing to cover repayments if you cannot. They may be an option if your credit score is low, though both parties should consider the risks carefully.

• Credit unions are not-for-profit financial cooperatives that may offer loans at competitive rates, particularly for those with lower credit scores.

Next step: Get your credit score and start comparing loans with ClearScore today. ClearScore Technology Ltd. is an independent credit broker, not a lender. We will receive a commission if you take out a product, but we never rank offers based on that.

Frequently asked questions about credit scores and personal loans

Will checking my eligibility on ClearScore affect my credit score?

No. When you check your credit score or view personalised loan offers through ClearScore, only a soft search is carried out. Soft searches are not visible to other lenders and have no impact on your credit score. A hard search is only recorded when you formally submit a full application to a lender, and it is these hard searches that other lenders can see on your credit report.

Why is my credit score different on ClearScore, Experian and TransUnion?

Each credit reference agency uses its own scoring model and scale. ClearScore shows your Equifax score on a scale of 0 to 1,000, while Experian scores range from 0 to 1,250 and TransUnion uses a scale of 0 to 710. The underlying data each agency holds may also differ slightly, depending on which lenders report to them. This means it is completely normal to see different numbers across services - what matters most is the overall trend and which band your score falls into.

How long does it take to improve my credit score enough to get a loan?

There is no fixed timeline, as it depends on your starting point and the steps you take. Some actions, such as correcting an error on your credit report or registering on the electoral roll, can have a relatively quick impact. Others, such as building a consistent payment history, take longer - typically several months of on-time payments before you see a meaningful shift. ClearScore updates your score regularly, so you can track your progress over time.

Does being declined for a loan affect my credit score?

Being declined does not directly lower your credit score. However, if the lender carried out a hard search as part of your application, that search will appear on your credit report regardless of the outcome. Multiple hard searches in a short period can signal to future lenders that you may be struggling financially, which could make them less likely to approve your application. Using eligibility checkers that rely on soft searches - like those available through ClearScore - can help you understand your chances before you formally apply.

Can I get a personal loan with no credit history?

It can be more difficult, but it is not impossible. If you have no credit history, lenders have limited information to assess your reliability as a borrower. You may find that specialist lenders or credit-builder products are more accessible starting points. Building a credit history by taking out a basic credit card, paying a mobile phone contract on time or being added to a household bill can help establish your profile. Over time, these positive records will contribute to your credit score and improve your eligibility for mainstream personal loans.