Is 470 a Good Credit Score?

By Timothy Moore

A 470 credit score is considered to be a below-average credit rating, according to FICO® and VantageScore, two widely used credit scoring models. It’s also far lower than the average American’s FICO Score of 715.

A 470 credit score usually indicates to lenders that you are a high-risk borrower, and as such, you may have a difficult time qualifying for certain loans and credit cards. Fortunately, there are steps you can take to improve your credit score and boost your chances of getting approved for a wider array of financial products. Let’s take a closer look.

What Does a 470 Credit Score Mean?

A credit score is a three-digit number that rates your creditworthiness. It’s calculated using five credit score factors found in your credit report: payment history, amounts owed, length of credit history, credit mix, and new credit. Scores range from 300 to 850. The higher your score, the more attractive you are to potential lenders.

Here’s how FICO Scores, which are used in the majority of lending decisions, are categorized:

•   Poor: Less than 580

•   Fair: 580-669

•   Good: 670-739

•   Very good: 740-799

•   Exceptional: 800+

As you can see, a 470 credit score falls in the lowest-ranking category. As such, you might have trouble getting approved for several types of loans and potentially even for an apartment lease or phone plan.

How to Build Your Credit Score

If you have a credit score of 470, you’re likely wondering how to improve it. A good place to start is to get serious about paying your bills on time. That’s because payment history has a sizable impact on your credit score (35% on FICO’s credit rating scale). If you need help managing bills, you can set up autopay or use a budget app.

Your debt-to-credit ratio, or credit utilization rate, also carries a lot of weight when it comes to your credit score, so focus on paying down revolving debt. It’s also smart to keep old accounts open, maintain a diverse mix of credit products, and check your credit report regularly and fix any inaccuracies.

What Can You Get with a 470 Credit Score?

Depending on your employment status and income, you may be able to qualify for some types of debt with a 470 credit score. However, be prepared for high interest rates and fees. In some cases, you may also need a cosigner or to offer collateral, like your house, car, cash, or jewelry, to get approved for a loan or credit card.

Can I Get a Credit Card with a 470 Credit Score?

Although a 470 credit score will limit your options, it is possible to get a credit card with a 470 credit score. Technically, there’s no set minimum credit score requirement for credit cards. It varies by creditor, and a select few are willing to approve borrowers with a 470 credit score (or no credit history at all).

To find the options available to you, consider limiting your search to credit cards for bad credit. Often, these are secured credit cards, meaning you will need to supply a cash deposit — and can only spend up to that cash deposit with the card. This will limit your purchasing ability, since you can’t spend more than you have. On the flip side, it can help you build up your credit score over time if you make on-time payments.

Alternatively, you may be able to get a credit card by becoming an authorized user on someone else’s. A loved one with stronger credit can add you to their card, giving you the freedom to use the card as if it were yours. But note that it’s your friend or relative who ultimately has to pay the credit card bill, so spend responsibly and pay them back promptly if you hope to keep your relationship in good standing.

If you’re struggling to juggle all your various monthly payments and feeling crushed by the weight of high-interest credit cards, you might want to consider a credit card consolidation loan. This type of personal loan combines all your debts into one simple monthly payment, ideally at a lower interest rate.

Can I Get an Auto Loan with a 470 Credit Score?

A 470 FICO Score does not make you ineligible for a car loan. In fact, there’s no real minimum credit score needed for an auto loan. People with poor credit scores — or no credit history at all — can and do get qualified for auto loans. However, with a poor credit score of 470, you will likely only get approved for a small loan amount, meaning more expensive cars are out of reach. Expect high interest rates and fees on the auto loan as well.

Can I Get a Mortgage with a 470 Credit Score?

Minimum credit score requirements for mortgages vary by the type of mortgage, but a 470 credit score unfortunately will likely not cut it. Here’s a look at the minimum credit score needed for various types of home loans:

•   FHA loans: 580 (or 500 with a 10% down payment)

•   VA loans: 620

•   USDA loans: generally 640 (SoFi does not offer USDA loans at this time)

Even if you’re buying a house with a spouse, relative, friend, or partner with a stronger credit score, your credit score can cause issues. Instead, let your loved one apply for the mortgage on their own, and you can be added to the deed afterward.

Can I Get a Personal Loan with a 470 Credit Score?

You may be able to get a personal loan with a 470 credit score, but your options will likely be limited. Personal loan credit score requirements vary by lender, but many set the minimum at 610 — and you’ll need one much higher than that for the best terms.

However, it’s possible to find lenders that are willing to issue small personal loans to borrowers with bad credit, though they may charge high fees and interest rates. You can help improve your chances of approval by offering collateral (if you’re applying for a secured personal loan) or adding a cosigner.

As you’re weighing your options, use a personal loan calculator to help gauge what monthly payments look like for different loan amounts and interest rates.

The Takeaway

Is a 470 a bad credit score? Both FICO and VantageScore classify it as below average. But if this is your score, take heart. By paying your bills on time, paying down debts as you’re able, and reviewing your credit reports regularly for errors, you can potentially improve your credit score over time. Credit-builder loans, secured credit cards, and being an authorized user on a loved one’s credit cards may also help put you on firmer financial ground.

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.

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

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