Aaron Crowe is a seasoned journalist who specializes in personal finance writing and editing. Aaron has written for a variety of websites, including AOL, Learnvest, U.S. News & World Report, Wells Fargo, WiseBread, AARP, and many insurance and investing sites. He is a self-proclaimed storyteller who enjoys explaining — in layman's terms — personal finance and how it affects consumers’ lives. Aaron has several years’ experience working as both a reporter and editor in newspapers where he won several awards, including a Pulitzer Prize.
Eric Bank has been covering business and financial topics since 1985, specializing in taking complex subject matters and explaining them in simple terms for consumer audiences. Eric's writing regularly appears on Credible.com, eHow, WiseBread, The Nest, Get.com, Zacks, Chron, and dozens of other outlets. A former software engineer, Eric holds an M.B.A. from New York University and an M.S. in finance from DePaul University.
Eric Bank has been covering business and financial topics since 1985, specializing in taking complex subject matters and explaining them in simple terms for consumer audiences. In addition to his work on CardRates.com, Eric has appeared regularly on Credible.com, eHow, WiseBread, The Nest, Get.com, Zacks, Chron and dozens of other outlets. A former software engineer, Eric holds an M.B.A. from New York University and an M.S. in finance from DePaul University.
A 500 credit score is classified as "bad" on the standard 300-to-850 scale. It is 200 points away from being a “good” credit score, which many people use as a benchmark, and 140 points from being “fair.” A 500 credit score won’t knock any lenders’ socks off, but it shouldn’t completely prevent you from being approved for a credit card or loan, either. For example, roughly 1 in 10 new credit card accounts are opened by someone with a credit score below 580, according to Equifax data.
Key Things to Know About a 500 Credit Score
Below, you can learn more about what a 500 credit score can get you and, even more importantly, how you can get a higher credit score. To that end, you can also check out your personalized credit analysis to see where you need to improve and exactly how to do it.
Check Your Latest Credit Score – 100% Free
What Does a 500 Credit Score Get You?
Type of CreditDo You Qualify?Secured Credit CardYESHome LoanYES (FHA Loan)Unsecured Credit CardMAYBEAuto LoanNOPersonal LoanNO
Note: It may be possible to qualify for an unsecured credit card, personal loan or auto loan in some cases, but the terms are unlikely to be attractive. If you apply for the average offer, you’re more likely to be rejected than approved.
Opinions are our own. This content is not provided, commissioned or endorsed by any issuer.
Credit Cards with a 500 Credit Score
The best type of credit card for a 500 credit score is a secured credit card. Secured cards give people with bad credit high approval odds and have low fees because cardholders are required to place a refundable security deposit. The amount you put down usually becomes your credit limit.
Popular Credit Cards for a 500 Credit Score
- Best Overall: Discover it® Secured Credit CardDiscover it® Secured Credit CardLearn MoreLearn Moreon issuer's website
- No Credit Check: OpenSky® Secured Visa® Credit CardOpenSky® Secured Visa® Credit CardLearn MoreLearn Moreon issuer's website
- Unsecured: Credit One Bank® Platinum Visa® for Rebuilding CreditCredit One Bank® Platinum Visa® for Rebuilding CreditLearn MoreLearn Moreon issuer's website
- Rewards & No Annual Fee: Capital One Quicksilver Secured Cash Rewards Credit CardCapital One Quicksilver Secured Cash Rewards Credit CardLearn MoreLearn Moreon issuer's website
Even if you don’t use it to make purchases, a credit card can help improve your score by adding positive info to credit report on a monthly basis. A secured card won’t give you an emergency loan, though. For that, you’ll need an unsecured credit card for bad credit. Such cards aren’t ideal, as they charge high rates and fees while allowing you to borrow very little. But they might be your only option.
Car Loans with a 500 Credit Score
People with credit scores below 540 receive less than 7% of all auto loans. As a result, your odds of getting approved for a decent car loan are slim. You will need to compare your options carefully and consider either placing a bigger down payment or purchasing a vehicle that’s less expensive.
Mortgages with a 500 Credit Score
Around 3% to 6% of first mortgages go to borrowers with credit scores below 620, depending on the year. Working to improve your credit score before you apply will make it much easier to get approved and will save you a lot of money. For example, a credit score of 580 or higher qualifies you for a lower down payment (3.5% vs. 10%) on an FHA home loan.
Student Loans with a 500 Credit Score
Student loans are some of the easiest loans to get with a 500 credit score, seeing as nearly 25% of them are given to applicants with a credit score below 540. A new degree may also make it easier to repay the loan if it leads to more income.
Note: Borrower percentages above reflect Q3 2017 Equifax data.
How to Improve a 500 Credit Score
Catch Up on Past-Due Payments
If you have not yet defaulted on a delinquent account, making up the payments you’ve missed is your best option. Having your account default will cause your credit score to fall further, possibly leading to collections and even a lawsuit, both of which could add to the credit damage. Each missed payment you make up will reduce your delinquency level, so you don’t have to pay the total amount due all at once. You can also explore debt management and debt settlement.
The impact of a serious delinquency is obvious from the manner in which credit scores rebound when it’s gone. Roughly 11% of people who fall 90 days behind on a loan or line of credit see their credit scores rise by at least 50 points when that record comes off their credit reports, according to FICO research. And nearly half see an increase of up to 29 points.
If you have defaulted, your next steps in terms of any amounts owed will depend on whether your account is taken to collections and what your state’s statute of limitations is. As far as your credit goes, a steady dose of on-time credit card payments is the best recipe.
Review Your Credit Reports for Errors
Your “bad” rating may be the result, at least in part, of erroneous information on your credit reports. So check your latest credit report for things like accounts you didn’t open and on-time payments mistakenly listed as late. And dispute any inaccurate records you find.
Be Patient After Foreclosure/Repossession
Having a home foreclosed or other property repossessed to cover unpaid balances on underlying loans can take your credit score from excellent to bad. For example, someone with a credit score of 780 could expect to see his or her score fall to 620-640, according to FICO. And an individual with a 720 credit score would likely see that score fall to 570-590.
Repossession and foreclosure are unlikely to be the lone negative marks on your credit report, considering they come after numerous missed payments and may be accompanied by collections accounts. And all of that negative information won’t fall off your credit report for seven years. So there’s no quick fix.
Rather, you need to slowly rebuild your credit reputation by establishing a pattern of on-time payments on any loans or lines of credit you have open. You should at least have one credit card account, for the chance to add positive information to your credit reports every month.
Open a Secured Credit Card Account
Secured cards offer the highest approval odds of any credit card because you have to place a refundable security deposit, the amount of which becomes your spending limit. And they report account information to the major credit bureaus on a monthly basis, just like any other credit card.
So each month your card’s issuer reports your account as being in good standing, a bit of positive information will be added to your credit reports to help cover up previous mistakes. There are two ways to ensure the information will be positive: pay the bill on time every month and don’t use the card at all. If there are no purchases to pay for, you’ll automatically receive credit for paying on time.
If your 500 credit score is the result of bankruptcy and the proceedings are ongoing, you may need to clear your new secured card with the court. Bankruptcy is the worst thing that can happen to your credit score, reducing even scores in the high 700s to the mid-500s, according to FICO. And it generally takes scores 7-10 years to fully recover. Unfortunately, there’s no way to lessen the impact. But you can speed up the process by placing a deposit on a secured credit card and locking it in a drawer, or making purchases and paying the bill on time every month.
Get Personalized Advice From WalletHub
The best approach to improving a 500 credit score is to check the Credit Analysis page of your free WalletHub account. This will tell you exactly what problem areas to focus on and how to correct them.
Top 10 Resources for a 500 Credit Score
- Bad Credit Guide
- Why Did My Credit Score Drop? Top 10 Causes
- Free Credit Score Simulator
- What’s Included in Your Credit Report & When Does It Get Updated?
- How to Rebuild Credit in 7 Steps & How Long It Will Take
- Why On-Time Bill Payments Are Important & How To Never Miss A Due Date
- How To Improve Your Credit Utilization
- How To Pay Off Credit Card Debt: The Best Way & Tips
- Most Common Credit Card Mistakes & Tips to Avoid Them
- What Is a Secured Credit Card? Definition & Examples
Was this article helpful?
YesNo
Disclaimer: Editorial and user-generated content is not provided or commissioned by financial institutions. Opinions expressed here are the author’s alone and have not been approved or otherwise endorsed by any financial institution, including those that are WalletHub advertising partners. Our content is intended for informational purposes only, and we encourage everyone to respect our content guidelines. Please keep in mind that it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.
Related Scores
493 494 495 496 497 498 499
501 502 503 504 505 506 507
Can you get a personal loan with a 500 credit score?
16
UpvotesReply
16
0
Rick Bormin, Personal Loans Moderator
@rhandoo2020
It is possible to qualify for a personal loan with a 500 credit score, but your choices are very limited. The best way to get a personal loan with a 500 credit score is to start by checking to see if you pre-qualify for loans from major lenders. Checking to see if you pre-qualify won't affect your credit score, so it's worth a shot to see if you're eligible for a decent deal.
If you don't pre-qualify, your best options may be to apply with a no-credit-check lender or take out a secured personal loan. Unsecured personal loans that do a credit check during the application process usually require a credit score of 585 to 700+ for approval. Other ways to get a personal loan with a credit score of 500 include borrowing from a friend or family member, applying for a loan with a cosigner, and looking into options from local credit unions.
Ways to Get a Personal Loan With a 500 Credit Score
See if you get pre-qualified
The best way to see if you're likely to qualify for an unsecured personfal loan with a 500 credit score is to check for pre-qualification. WalletHub's free pre-qualification tool will let you know your approval odds and potential interest rates with multiple lenders at once, with no impact on your credit score.
No-credit check personal loans
These are a good option for people with a credit score of 500 because the lender does not take your credit score into consideration when you apply. The tradeoff is that they tend to be more expensive than personal loans that do a credit check. The best no-credit check personal loan providers include OppLoans and Integra Credit.
Apply with a cosigner
Some personal loans let you apply with a co-signer, which is a person who promises to pay back the loan if you don't. The cosigner's credit and income impact the lender's decision more than those of the primary applicant, so it can help people with a credit score of 500 get approved for loans they might not normally qualify for.
Try credit unions
Credit unions often have more lenient personal loan approval requirements than banks and may be willing to consider applicants with bad credit. You can find credit unions in your area on WalletHub and consult with them to see if you have a shot at approval.
Friends and family
People you have a close relationship with won't necessarily care about your credit score, and may be willing to lend to you. There's also a good chance you'll get better and more flexible terms than you would with a traditional lender.
Secured personal loans
These loans are attainable with a credit score of 500 because they require collateral that the lender can keep if you default on the loan, so there's relatively little risk for the lender. A lot of secured personal loans will require you to use money in a bank account as collateral, but some will accept other types of collateral, like a vehicle.
3
0
Can I get an unsecured credit card with a 500 credit score?
26
UpvotesReply
26
0
Chip Lupo, Credit Card Writer
@CLoop
Yes, you can get an unsecured credit card with a 500 credit score, but you will likely end up with high fees, high interest rates, and a low credit limit. The best unsecured credit card to get with a 500 credit score is the Credit One Visa card.
The Credit One Visa offers a $300 starting credit limit, the potential for automatic credit line increases, and an annual fee of $75 intro 1st yr, $99 after. Cardholders earn rewards on select purchases, too.
Still, the odds of getting approved for a decent unsecured credit card are higher with a credit score of at least 640. And the higher your credit score is, the better your chances of getting an unsecured card with good terms will be.
Unsecured Credit Cards to Get with a 500 Credit Score
- Best for Credit Line Increases: Credit One Bank® Platinum Visa® for Rebuilding CreditCredit One Bank® Platinum Visa® for Rebuilding CreditLearn MoreLearn Moreon issuer's website
- Best for No Upfront Fees: Milestone® Mastercard® - Less Than Perfect Credit ConsideredMilestone® Mastercard® - Less Than Perfect Credit ConsideredLearn MoreLearn Moreon issuer's website
- Best for Pre-Approval: Indigo® Mastercard® for Less than Perfect CreditIndigo® Mastercard® for Less than Perfect CreditLearn MoreLearn Moreon issuer's website
While Credit One Visa may be the best unsecured credit card for people with a 500 credit score, it's still not the most attractive option overall. People with bad credit who are in the market for a credit card should look into applying for a secured card instead. Most secured cards come with $0 annual fees, and some cards, such as the Bank of America® Customized Cash Rewards Secured Credit Card, give rewards on purchases.
Secured cards are also easier to get than unsecured cards because you'll have to pay a security deposit, usually $200 at a minimum, to open the account. The amount of your deposit determines your credit limit in most cases, and you can increase your limit by adding more money to your deposit. Your deposit is fully refundable when you close the account in good standing.
2
0
What are the best credit cards for a 500 credit score?
20
UpvotesReply
20
0
WalletHub
@WalletHub
The best credit card for a 500 credit score is the Discover it® Secured Credit Card. It has a $0 annual fee and rewards cardholders with 2% cash back at gas stations and restaurants (up to $1,000 spent each quarter combined), and 1% back on all other purchases.
Secured cards generally provide the best opportunity for someone with a credit score of 500 (or below) to rebuild their credit standing, thanks to good approval odds and monthly reporting to the major credit bureaus.
Best Credit Cards for a 500 Credit Score
- Overall: Discover it® Secured Credit CardDiscover it® Secured Credit CardLearn MoreLearn Moreon issuer's website
- Bonus Points: U.S. Bank Altitude® Go Visa® Secured CardU.S. Bank Altitude® Go Visa® Secured CardLearn MoreLearn More
- No Annual Fee: Capital One Quicksilver Secured Cash Rewards Credit CardCapital One Quicksilver Secured Cash Rewards Credit CardLearn MoreLearn Moreon issuer's website
- Cash Back: Bank of America® Customized Cash Rewards Secured Credit CardBank of America® Customized Cash Rewards Secured Credit CardLearn MoreLearn More
- No Credit Check: OpenSky® Secured Visa® Credit CardOpenSky® Secured Visa® Credit CardLearn MoreLearn Moreon issuer's website
- Unsecured: Credit One Bank® Platinum Visa® for Rebuilding CreditCredit One Bank® Platinum Visa® for Rebuilding CreditLearn MoreLearn Moreon issuer's website
When used responsibly, the right credit card for a 500 credit score can put you on the path to good credit. The key is to pay your bill on time every month.
For more tips, check out our guide on how to rebuild bad credit. You can also get personalized credit-improvement advice and credit card suggestions with a free WalletHub account.
2
0
What are the best credit cards for credit scores under 500?
6
UpvotesReply
6
0
Patrick Murphy, WalletHub Analyst
@stpatrick1982
One of the best credit cards for a credit score under 500 is the Capital One Quicksilver Secured Cash Rewards Credit Card. This card has a $0 annual fee and gives 1.5 - 5% cash back on purchases.
Secured cards generally provide the best opportunity for someone with a credit score under 500 to rebuild their credit standing. That is because these cards offer good approval odds and monthly reporting to the major credit bureaus.
Here are some of the best credit cards for a credit score under 500:
- Overall: Capital One Quicksilver Secured Cash Rewards Credit CardCapital One Quicksilver Secured Cash Rewards Credit CardLearn MoreLearn Moreon issuer's website
- Partially-Secured: Capital One Platinum Secured Credit CardCapital One Platinum Secured Credit CardLearn MoreLearn Moreon issuer's website
- Cash Back Rewards: Bank of America® Customized Cash Rewards Secured Credit CardBank of America® Customized Cash Rewards Secured Credit CardLearn MoreLearn More
- No Credit Check: OpenSky® Secured Visa® Credit CardOpenSky® Secured Visa® Credit CardLearn MoreLearn Moreon issuer's website
- Unsecured: Credit One Bank® Platinum Visa® for Rebuilding CreditCredit One Bank® Platinum Visa® for Rebuilding CreditLearn MoreLearn Moreon issuer's website
When used responsibly, the right credit card for a credit score under 500 can put you on the path to good credit. The key is to pay your bill on time every month.
For more tips, check out our guide on how to rebuild credit. You can also get personalized credit-improvement advice and credit card suggestions with a free WalletHub account.
5
0
How much can I borrow with a 500 credit score?
0
UpvotesReply
0
0
Grace Enfield, Content Writer
@grace_enfield
You can borrow anywhere from a few thousand dollars to $100,000+ with a 500 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.
The best personal loans for a 500 credit score are from Upstart. The company offers $1,000 - $50,000 with APRs of 5.35% - 35.99% and repayment periods of 36 , 60 months. You will need a credit score of None+ to qualify for a personal loan from Upstart .
Best Personal Loans for a 500 Credit Score
Lender
Loan Amounts
APRs
Credit Score Requirement
Upstart
$1,000 - $50,000
5.35% - 35.99%
None
Oportun
$300 - $12,000
36% maximum
None
OneMain Financial
$1,500 - $20,000
18% - 35.99%
None
RISE
$500 - $5,000
60% - 299%
None
Jora Credit
$500 - $4,000
185% - 350%
None
For more information, check out WalletHub's complete picks for the best personal loans for bad credit. Then, you can estimate your potential rates with our free pre-qualification tool.
0
0
Can I get a debt consolidation loan with a 500 credit score?
0
UpvotesReply
0
0
Grace Enfield, Content Writer
@grace_enfield
You can get a debt consolidation loan with a credit score of 500 if you apply with a lender that does not have a credit score requirement. Alternatively some lenders for bad credit may accept credit scores as low as 580. However, these loans typically have high APRs to make up for the lack of a credit score requirement, so you might not save much money.
The best no credit debt consolidation loans are from Upstart because the company has loan amounts of $1,000 - $50,000, APRs typically of 5.35% - 35.99% and repayment periods of 36 , 60 months. Upstart isn't your only option, though. You can see a comparison of the best no credit debt consolidation loans below.
Best Debt Consolidation Loans for a 500 Credit Score
Company
Credit Score Requirement
Loan Amounts
APRs
Upstart
None
$1,000 - $50,000
5.35% - 35.99%, typically
Oportun
None
$300 - $12,000
36% maximum
OneMain Financial
None
$1,500 - $20,000
18% - 35.99%
RISE
None
$500 - $5,000
60% - 299%
Jora Credit
None
$500 - $4,000
185% - 350%
To read more about the top-ranked offers, check out WalletHub's complete picks for the best no credit loans. You can also estimate your potential rates with our free pre-qualification tool.
Additionally, you may want to consider getting a loan from a friend or family member to repay your debt. Your friends or family may offer better terms than conventional loans.
Upstart Disclosure: Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000), NM ($5,100), OH ($6,000).
The full range of available rates varies by state. The average 5-year loan offered across all lenders using the Upstart platform will have an APR of 24.83% and 60 monthly payments of $26.36 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $15,817 including a $594 origination fee. APR is calculated based on 5-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
14
0
What are the best personal loans for a 500 credit score?
0
UpvotesReply
0
0
Rick Bormin, Personal Loans Moderator
@rhandoo2020
The best personal loans for a 500 credit score are from OppLoans and Integra Credit. These companies specialize in lending to people with bad credit and won't even do a credit check when you apply for a loan.
It's important to note that any personal loan you get with a 500 credit score is likely to have a very high APR and an expensive origination fee. If possible, you might want to try to borrow money a less costly way, such as from friends and family. If that's not an option, the following lenders offer the most competitive terms.
Best Personal Loans for a 500 Credit Score
- OppLoans
- Integra Credit
Keep in mind that getting a personal loan with a 500 credit score is not guaranteed. When making a decision on whether or not to approve you, a lender will look at your whole financial profile, including things like your income, existing debts, housing status and more.