To secure a loan, first assess your credit score through free services like Experian or Equifax. A score above 630 typically qualifies for most loans. Next, compare lenders including banks, credit unions, and online platforms, focusing on interest rates and terms. Prepare documents such as proof of income, tax returns, and bank statements. Submit a formal application and await approval. If denied, address credit issues or explore alternative options like secured loans.

The importance of credit score stems from its direct impact on loan approval and terms. As of 2023, the average U.S. credit score was 710, with 60% of applicants denied loans below 620 (Federal Reserve, 2023). Lenders use credit history to gauge repayment risk, with scores below 580 often requiring collateral. For example, a 700+ score may secure a 4% mortgage rate, while a 500 score could lead to 10%+ rates or denial (Experian, 2023). Additionally, 68% of credit unions offer lower rates than big banks, making lender comparison critical (NCUA, 2022). Proper documentation reduces approval time by 30% (U.S. Bank, 2023), as lenders verify financial stability. Addressing errors on credit reports can raise scores by 50-100 points, improving loan accessibility ( FTC, 2023). Thus, proactive credit management and strategic lender selection maximize loan success.