 TITLE: How Do Home Improvement Loans Work? CONTENT: What Credit Score Is Needed for a Home Improvement Loan?\n--------------------------------------------------------\nWhether you're applying for a credit card, secured loan or unsecured loan, your credit scores, income, debt-to-income ratio and the equity in your home (for secured loans) can all factor into whether you're approved and if you receive favorable terms.\nEach creditor and loan type may have its own credit score requirements, but there are some general guidelines. For example, you may need a FICO® Score☉ of at least 660 to get approved for a mortgage-backed loan. However, a 680 credit score or better may increase your chances, and having a score above 700 could make it easier to qualify and receive good terms.\nUnsecured loans, including personal loans and credit cards, tend to require higher credit scores because you're not offering collateral to the creditor. You can sometimes get approved with a low score, but if you do, you might not get a high enough credit limit or loan amount to finance your project. Or, you might wind up with such a high interest rate that it isn't worth borrowing the money unless your project is a necessity. END