Is 460 a Good Credit Score?

By Dan Miller

Credit scores typically range from 300 to 850, and a score of 460 is considered “poor” by most lenders.

If you have a 460 credit score, you’ll likely have a difficult time getting approved for anything that involves a credit check. This means that most credit cards, auto loans, and mortgages will probably be out of your reach. You may even find it difficult to be hired for some jobs or be accepted for some apartment rentals, as landlords and employers often run a credit check as part of the application process.

If you have a 460 credit score, it’s a good idea to take steps to improve your credit as part of bolstering your overall financial picture.

What Does a 463 Credit Score Mean?

A credit score of 460 is considered poor and falls within the lowest tier of FICO® scores, which are used in the majority of lending decisions.

FICO Scores range from 300 to 850; the higher the number, the better the score. Here’s how credit scores are categorized:

•  300-579: Poor

•  580-669: Fair

•  670-739: Good

•  740-799: Very good

•  800 or more: Excellent

Having a 460 credit score means that your score is on the low end of the spectrum. As such, your borrowing options will be limited, and you may have a tough time getting approved for credit products such as mortgages, personal loans, or credit cards.

How to Build Your Credit Score

Is 460 a bad credit score? As we discussed, lenders consider it poor. But the good news is, your credit score is hardly set in stone. You can take steps to build your credit before trying to apply for a loan. Consider these strategies:

•  Pay your bills on time, every time.

•  Try to use only a small portion of your available credit. This will lower your credit utilization, which can help your score.

•  Keep established accounts open to help build a long credit history.

•  Open new credit accounts only when truly necessary.

•  Check your credit reports often, and correct any mistakes you find.

What Can You Get with a 460 Credit Score?

A 460 credit score will likely keep you from qualifying for most financial products that rely on credit, including mortgages, auto loans, personal loans and credit cards. But there are some alternatives worth considering. Let’s take a closer look at some different scenarios.

Can I Get a Credit Card with a 460 Credit Score?

Though there’s no minimum credit score required for a credit card, chances are you’ll have a hard time getting approved for one with a 460 score. If you are looking for a new credit card, consider exploring credit cards specifically designed for individuals with lower credit scores.

One option is a secured credit card, which requires a refundable security deposit that serves as collateral if payments aren’t made. When used wisely and paid on time, secured cards can be a valuable tool for improving your credit.

If you’re carrying high-interest credit card debt, a credit card consolidation loan might be a smart option to consider. It allows you to combine multiple balances into one loan (preferably with a lower interest rate). This may help lower your overall monthly payments and simplify your finances. It could help you to pay down your debt and, over time, build up your credit score.

Can I Get an Auto Loan with a 460 Credit Score?

Many lenders require a credit score of at least 600 to qualify for an auto loan, but you may be able to find some lenders that will work with someone who has a 460 credit score.

You’ll likely have an easier time securing a car loan if you add a cosigner who has a strong credit history. You’ll both apply for the loan and share financial responsibility for paying back the borrowed money. However, the cosigner doesn’t share ownership of the car.

Can I Get a Mortgage with a 460 Credit Score?

You are very unlikely to be able to qualify for a mortgage with a 460 credit score. As an example, here are three common types of mortgages with their recommended minimum credit scores:

•  FHA loans: These types of loans generally require a minimum credit score of 580 to qualify for the 3.5% down payment option. Borrowers with scores between 500 and 579 may still be eligible with a 10% down payment.

•  VA loans: The Department of Veterans Affairs does not set a minimum credit score, but most lenders prefer to see a score of at least 620 for approval.

•  USDA loan: While the USDA itself does not mandate a minimum credit score, lenders often require a credit score of 640 or higher for automated underwriting.

Can I Get a Personal Loan with a 460 Credit Score?

Most, but not all, personal loans are unsecured, meaning they don’t require collateral. To help mitigate the lender’s risk, an applicant’s credit score is an important metric in deciding whether to approve a personal loan application. Generally speaking, the lower your credit score, the lower your chances of being approved for the loan.

If you’re applying for a personal loan with a 460 credit score, you may find that you have fewer options to choose from than a borrower with a better credit score. And if you are approved, it’s likely that the interest and fees you’re required to pay will be significantly higher than an applicant with a higher credit score.

Consider using a personal loan calculator to explore what types of loans might be available for your specific financial situation.

The Takeaway

Is 460 a good credit score? According to FICO, it falls within the “poor” credit range, so the simplest answer is that 460 is not a good credit score. Having a credit score of 460 can make it difficult to qualify for most credit products, since many lenders rely heavily on your credit score when reviewing applications for mortgages, credit cards, auto loans, and personal loans. If you do qualify for a loan, it will likely come with high interest rates and less favorable terms.

Improving your score before applying for a credit card or loan could help you secure better options. Taking steps to build your credit now could lead to more financial flexibility in the future.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

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