When we apply for a personal loan, most of us focus on the amount we want to borrow or how fast we can get the money. But behind the scenes, one major factor determines whether or not we get approved: our credit score. In this article, we’ll explore what credit scores are, how they impact personal loan eligibility, and how you can improve your score to increase your chances of approval.

What is a Credit Score? A credit score is a three-digit number that tells lenders how trustworthy you are when it comes to paying back loans. It’s based on your credit history, including how often you pay bills on time, how much debt you currently have, and how long you’ve been using credit. Scores typically range from 300 to 850. The higher your credit score, the better your chances of getting approved for loans, including a personal loan.