What credit score do I need for a personal loan?

Most lenders prefer a minimum FICO credit score of **580 or higher** for personal loan approval. For the best interest rates, typically below 15%, you'll generally need a credit score of **720 or above**.

How fast can I get a personal loan?

The funding timeline for personal loans varies by lender. Many online lenders can disburse funds within **one to three business days** after approval. Traditional banks or credit unions may take longer, sometimes up to seven business days.

Are personal loans tax deductible?

Generally, **personal loan interest is not tax deductible**. The IRS allows deductions for interest on loans used for specific purposes, such as qualified education expenses, business expenses, or certain home-related expenses. Consult a tax professional for advice on your specific situation.

What is the maximum personal loan amount?

The maximum personal loan amount typically ranges from **$50,000 to $100,000**, depending on the lender and your creditworthiness. Some specialized lenders may offer higher amounts for highly qualified borrowers, but these are less common.

Can I get a personal loan with bad credit?

Yes, it is possible to get a personal loan with bad credit (typically below 580), but it will likely come with **significantly higher interest rates** (often 25-36% APR) and potentially more fees. Lenders specializing in bad credit loans may also require collateral or a co-signer.

Does applying for a personal loan hurt my credit score?

Prequalification for a personal loan involves a **soft credit inquiry**, which does not impact your credit score. However, submitting a full application triggers a **hard credit inquiry**, which can temporarily lower your credit score by a few points for a short period.

What happens if I can't repay my personal loan?

If you cannot repay your personal loan, the lender will first attempt to collect the debt. This can lead to **late payment fees**, a negative impact on your credit score, and potentially collection agency involvement. In severe cases, the lender may pursue legal action, and for secured loans, they could repossess your collateral.

Personal Loans Guide 2026: Rates, Uses & How They Work |…