If you need to borrow money, having a good credit score — or a score of 670 or higher — can work in your favor. You’ll likely have access to various lenders offering personal loans with reasonable rates and terms. Plus, you can possibly borrow the amount you need and get a monthly payment you can afford.

Before applying, you should understand who offers personal loans for consumers with good credit and how to increase your chances of qualifying for funding. It’s equally important to know how to determine if a personal loan is ideal and when it makes more sense to consider alternatives.

What a good credit loan is

If your credit score is between 670 and 739, you fall into the ranks of consumers with “good credit.” This loan product generally comes with competitive loan terms, including attractive interest rates, longer repayment terms and higher amounts than you would get with fair or bad credit.

Remember, despite the enticing terms that come with these loans, you may not qualify for the lowest interest rate the lender offers. It is generally reserved for borrowers with very good and excellent credit — scores between 740 and 850 — that also meet the lender’s income, employment and debt-to-income ratio guidelines. Still, a good credit loan is worth considering if you need fast cash.

Where to get a good credit loan

Good credit loans are available through three types of lenders — banks, credit unions and online lenders.


Traditional banks cater to borrowers with good or excellent credit scores. You can access higher loan amounts and extended loan terms. Some banks also offer perks to current account holders, like interest rate reductions, to help maximize cost savings.

Credit unions

You’ll need a credit union membership to apply for a personal loan. Still, joining a credit union you want to do business with could be worthwhile.

Their loans often come with lower interest rates than you’ll get with a traditional bank. To illustrate, the national average rate on a three-year, unsecured, fixed-rate personal loan is 9.66 percent for credit unions and 10.4 percent for banks, according to the National Credit Union Administration.

Online lenders

Online lenders generally feature a streamlined digital application process, rapid approvals, and funding times. Many also offer online prequalificationl tools to let you view loan offers if there’s a match without impacting your credit score. You’ll also find that online lenders have more flexible lending criteria than traditional banks, and some also offer lower fees.

How to get a good credit loan

Follow these steps when you’re ready to apply for a good credit loan.

  1. Check your credit. Get a copy of your credit report from the three primary credit bureaus — Experian, TransUnion and Equifax — and highlight any errors you notice. File disputes promptly to have them removed, as it can take up to 30 days for a bureau to respond.
  2. Shop around. It’s never ideal to settle for the first personal loan option you find. Do some research to identify personal loans from traditional banks, credit unions and online lenders that could meet our funding needs.
  3. Get prequalified. Get prequalified online with at least three lenders and view potential loan offers without impacting your credit score to avoid unnecessary hard credit pulls.
  4. Compare loan offers. When comparing your options, be mindful of the interest rates, loan terms, fees and funding times each lender is offering. It’s equally important that the loan amounts you’re offered fit your needs. Also, take note of any perks, like autopay discounts.
  5. Gather your documents. Most lenders will request a copy of your government-issued ID, proof of address, most recent pay stubs or bank statements and information about your employer.
  6. Apply for a loan. Complete the application and send over the documentation the lender requests to make a lending decision. Many lenders provide same-day or next-day lending decisions, and some offer rapid funding options.

How to decide if a good credit loan is right for you

Before taking out a personal loan, here are some questions to ponder:

  • Do you have a solid credit score? If so, do you qualify for a competitive interest rate?
  • How do you plan to use the funds? Is there an urgent need for a personal loan, or could you save up the money you need over time?
  • Do you have enough wiggle room in your budget to afford the monthly loan payments? Have you used a personal loan calculator to make this determination?
  • Do you plan to consolidate high-interest debt? If so, do the savings outweigh the borrowing costs you’ll incur with a personal loan? Are you disciplined enough with your spending to avoid racking up more credit card debt once you’ve cleared the balances?

Your answers to these questions will help determine if a personal loan makes financial sense or if you should explore other options.

Alternatives to a good credit loan

A personal loan isn’t the only way to access the funds you need. Some viable alternatives are as follows:

  • Personal line of credit. This debt product operates like a credit card and allows you to reuse the funds as you pay down the balance. And unlike personal loans, you’ll only pay interest on the amount you borrow.
  • Balance transfer credit card. These cards come with an interest-free introductory period – usually between 12 and 18 months. You’ll essentially get an interest-free loan if you can repay what’s spent in this window.
  • Home equity loan. It lets you borrow against the equity you’ve built up in your home. You’ll get a lump sum upfront, payable over time, and the interest may be lower than what you’d get with a personal loan. Home equity loans act as second mortgages, though; you could lose your home if you fall behind on the loan payments.
  • Home equity lines of credit (HELOCs). Like a home equity loan, a HELOC is also a second mortgage that lets you convert some of your equity into cash. But there’s a significant difference between the two. With a home equity loan, you get a lump sum upfront and pay interest on the entire loan amount. However, a HELOC allows you to pull funds as needed during what’s referred to as the draw period, and you’ll only pay interest on the amount you withdraw.