While you don’t need a perfect credit score in order to get approved for a personal loan, the higher your credit score, the more likely you are to get loan terms that are more favorable for you, like no fees and a lower interest rate. (Have a bad credit score, Select rounded up a list of the best personal loans for bad credit.)
« Being unemployed does make the process more challenging. From the lender’s point of view, they want to lend money to an individual who they believe can pay the funds back, » she says. « So if you’re in a situation where you don’t have money coming in, it may be challenging for you to pay them back. If you have a history of paying down your credit cards and other past debts on time, that will lend itself to your favor. »