Having a good credit rating certainly makes applying for a personal loan easier. But it is not always the case that you need a good credit rating to access a personal loan with all providers. It can be easier to apply for a loan with a good credit rating because you are deemed more creditworthy by lenders. What that means in practice is that lenders feel you are less of a risk to lend money to. They make money themselves by receiving loan repayments thanks to the interest that they charge on loan amounts.
To make money, lenders, therefore, need to receive those repayments in the first place. If they don’t, they’ll make far less profit. As a result, they only want to lend to people they believe will make payments as scheduled, on time.
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