Is 450 a Good Credit Score?
Here’s a question you may be asking yourself before a major purchase: Is my credit score high enough to get the best rates and terms? If your credit score is 450, then the answer is more than likely no.
A 450 credit score is considered to be below average by FICO® and VantageScore, two widely used credit scoring models. It’s also 265 points lower than the average American’s credit score of 715. But don’t despair: There are ways to improve your credit score and qualify for more borrowing options with better rates and terms.
Learn about a 450 credit score, whether you could get a credit card, auto loan, or mortgage loan with it, and how to build your credit score.
Key Points
• A 450 credit score is considered poor, limiting access to favorable debt terms.
• Strategies to build credit include timely bill payments, reducing debt, and authorized user status.
• Secured credit cards and authorized user roles can help build credit.
• Auto loans are possible with a 450 credit score but may have high interest rates and strict conditions.
• Personal loans and mortgages are challenging but may be available from alternative lenders.
What Does a 450 Credit Score Mean?
Before we dive into what a 450 credit score means, here’s a crash course on credit scores. This three-digit number is calculated using information from your credit reports, and it communicates to lenders how you manage your debt.
FICO Scores are used in the majority of lending decisions, and they consider five factors: payment history (35%), the amount you owe (30%), the length of your credit history (15%), your credit mix (10%), and new credit accounts (10%).
FICO Scores are categorized as follows:
• Below 580: Poor
• 580-669: Fair
• 670-739: Good
• 740-799: Very good
• 800 and up: Exceptional
As you can see, anything below 580 falls into the “poor” category, and this includes a 450 credit score. Borrowers with that score will likely have a difficult time getting approved for certain loans and credit cards. And the ones they can get may come with high fees, high interest rates, and less-than-favorable terms.
How to Build Your Credit Score
When you have a credit score of 450, consider taking steps to improve it — and increase the chances of getting approved for a credit card or loan. Here are some strategies to explore:
• Consistently pay your bills on time.
• Pay down revolving debt.
• Become an authorized user on a friend or family member’s credit card, or get a secured credit card and use it responsibly.
• Check your credit report regularly, and address any inaccuracies.
Recommended: Why Did My Credit Score Drop After a Dispute?
What Else Can You Get with a 450 Credit Score?
As we mentioned, a 450 credit score is considered below average. Getting approved for a loan or credit card will likely be difficult, but it’s not impossible. Let’s take a closer look.
Can I Get a Credit Card with a 450 Credit Score?
There’s no set credit score required for a credit card. However, chances are, you’ll find it a challenge to get approved for a traditional credit card with a 450 credit score. The ones you can get may come with higher interest rates and fees and few, if any, rewards.
A secured credit card may be the answer. It often has lower credit score requirements, higher debt-to-income ratios (DTI), and more flexible financial criteria. Secured cards function like traditional cards: You pay a cash deposit upfront to guarantee the credit line. This deposit functions as collateral. If you don’t make payments on time or you default on your debt, your lender can take your deposit. As you make monthly payments on time, your lender will report your activities to the national credit bureaus, and your credit score may go up.
Another idea is to become an authorized user on someone else’s card. The cardholder adds you to their account, and you can benefit from their positive financial habits.
Can I Get an Auto Loan with a 450 Credit Score?
Securing a car loan with a 450 credit score isn’t common, but it could happen. In 2024, only 1.9% of borrowers with a credit score of 300-500 got a car loan, according to Experian.
It’s possible that whatever loan you do qualify for will come with higher interest rates. According to Experian, borrowers with a 450 credit score received an average annual percentage rate (APR) of 15.43%, while borrowers with scores of 781 or higher were offered an average APR of 5.08%.
You may find it easier to get a car loan if you add a cosigner. You’ll both apply for the loan and be responsible for making payments. However, the cosigner doesn’t own your car.
Can I Get a Mortgage with a 450 Credit Score?
With a 450 credit score, you’re unlikely to get approved for a conventional loan, which typically requires a 620 credit score. Let’s take a look at the typical required minimum credit scores of some other types of home loans.
• FHA loan: The Federal Housing Administration (FHA) insures FHA loans. You’ll typically need to have a 580 credit score (with a 3.5% down payment) or 500 credit score (with a 10% down payment).
• VA loan: VA loans are backed by the U.S. Department of Veterans Affairs. There’s no specific credit score minimum to meet, though some lenders require at least a 620.
• USDA loan: USDA loans are backed by the U.S. Department of Agriculture. Most lenders for USDA loans require a minimum 640 credit score.
Bottom line: If you’re house hunting and have a below-average score, you may want to hit the pause button if you can and focus on improving your credit profile.
Can I Get a Personal Loan with a 450 Credit Score?
A personal loan can be used for just about anything, including consolidating high-interest credit card debt, paying for a wedding, or covering an emergency expense.
Typically, personal loans are unsecured, meaning you usually don’t need to put up a form of collateral, such as a house or car, to get approved. But you may have a difficult time finding a lender to extend you an unsecured loan if you have a 450 credit score. As with other types of credit, if you are approved for an auto loan, you may be subject to higher APRs and fees and shorter repayment periods.
Another option: a secured personal loan, which is generally easier to qualify for but will require you to put up collateral.
As you’re weighing your personal loan options, make sure to figure out how much your monthly payments will be based on the amount you want to borrow and the interest rate you’re offered. A personal loan calculator can help you crunch the numbers.
Recommended: Can You Get a First-Time Personal Loan With No Credit History?
The Takeaway
Is a 450 credit score good or bad? According to two common credit scoring models, it’s below average and far lower than the average American’s score. Fortunately, credit scores aren’t permanent, and you can take steps to start boosting your number. It helps to pay bills on time, keep debt low, diversify your credit mix, keep older accounts open, and monitor your credit report and report inaccuracies.
Remember, raising your score can take time, but the end result — positioning yourself for the best rates and terms — can be worth the wait.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.
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