Credit score can help you get low interest rates on personal loans and is one of the most important criteria for your application to be approved. Personal loans are unsecured and require no collateral. Therefore, your income and credit score play an important role in determining your creditworthiness and obtaining a personal loan on the terms you want.
What is a credit score?
A credit score is a three-digit number produced by credit bureaus and is based on your previous borrowing history. This score generally ranges between 300 and 900 and reflects your borrowing behavior and whether or not you are a reliable borrower. A high credit score can help you get low interest rates and the loan amounts you want. On the other hand, a low credit score can attract extremely high interest rates and make you ineligible for loans.
Can you get a personal loan with a credit score of 666?
If you have a credit score of 666, you are just reaching the level of a good borrower. This score usually indicates that you have had some late payments in the past and that your previous payments may have been irregular. This credit score indicates that you are not a high-risk borrower. However, you may still have trouble getting approved for your loan.
With this credit score, your chances of getting a loan application approved are decent. In this case, your salary and other assets, as well as investments, play a crucial role in making your profile strong. This gives lenders a sense of security that even though you may have had a few defaults on your previous loans or credit card bills, you will be able to repay the loan on time. Even though you may not be able to get the lowest interest rates with this credit score, you can still get decent interest rates.
In conclusion, you must understand that personal loans generally have high interest rates compared to other loans in the market. Therefore, you should evaluate your needs and then explore other available options so that you can get the best deal for yourself.
(Note: taking out a personal loan comes with its own risks)
