Hanneh Bareham
7 min read
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A high credit score and income are crucial to qualifying for the lowest rates on a personal loan.
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Improving your score before applying for a personal loan could help you secure a lower rate.
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Shopping for the best rates with at least three lenders or on a marketplace like Bankrate allows you to compare multiple offers.
Low-interest personal loans are offered to the most creditworthy borrowers by banks, credit unions, online lenders and marketplace lenders. They come with competitive annual percentage rates (APRs) below the national average personal loan rate of 12.19% as of Jan. 14, 2026, and often below 10%.
To qualify for the best personal loan rates, you’ll typically need:
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A FICO credit score above 740 (or 800 for the very best rates)
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An annual income above a certain yearly threshold
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A clean credit record
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An established credit history
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A bank account for automatic payments
While every lender has different standards and minimum requirements, you can increase your chances of getting approved for a low-interest personal loan by following these seven steps.
Lenders typically consider you to have an excellent credit score if it falls between 800 and 850. Scores that high reflect your ability to manage credit responsibly, giving you the best chance of snagging the lowest available rates. Your bank or credit card issuer may offer free access to your credit score, or you can purchase it from one of the credit bureaus.
Before applying, check your credit report and scan it for any errors that may be negatively affecting your score. You can get a free copy of your reports once a week from all three credit bureaus — Equifax, Experian and TransUnion — by visiting AnnualCreditReport.com.
Bankrate tip
If there aren’t any mistakes on your report but your score isn’t quite at the 800 mark, try paying off any outstanding revolving credit to reduce your credit utilization ratio. If you recently applied for new credit, your score may need a month or two to recover from the hard inquiry.
Besides payment history, your credit utilization ratio has the biggest impact on your credit scores, and therefore your ability to qualify for a low rate. Carrying even a small balance could dip your scores enough to knock you out of the running for the lowest personal loan rates.
If you recently used a rewards card to earn cash back or travel rewards, pay off the balance and give yourself a month or two for your credit score to recover. Check your credit report to ensure the balance is zero before applying for a low-interest personal loan.
