Is 495 a Good Credit Score?

By Rebecca Lake

Credit scores measure your financial health and tell lenders how you manage credit and debt. These scores are calculated based on information in your credit reports. If you plan to apply for a loan or line of credit, this three-digit number can make a difference in whether you’re approved and the rates you pay.

Is 495 a good credit score? The short answer is no, not at all. Read on to learn what a credit score below 500 means and how it can affect you financially.

What Does a 495 Credit Score Mean?

Credit scores operate on a range. FICO® credit scores, which are used by 90% of top lenders for loan decisions, range from 300 to 850. Where you fall in that range determines what kind of credit rating you have.

A credit score of 495 is poor on the FICO scale. A poor credit score means that:

•   Your credit score is well below the average borrower’s credit score.

•   You present a greater risk to lenders.

For perspective, the average credit score in the U.S. is 715, according to Experian. That’s well above the minimum threshold for “good” credit.

Is 495 a bad credit score? Yes. Is it the end of the world? No, but it could make life harder if you need to borrow money.

You may not be approved at all for credit, or you may only qualify for bad credit loans. Some bad credit loans, like payday loans or title loans, are predatory in nature. Payday loans, for example, can have interest rates approaching 400%. Lenders can charge rates that high if you have a 495 credit score because they bank on you not being able to get approved elsewhere.

What Else Can You Get with a 495 Credit Score?

Lenders may be reluctant to offer you loans when your credit score is below 500, regardless of the reasons why your score is that low.

For example, maybe you’re recently divorced and your ex-spouse ran up debt in both your names. Those debts can affect your credit score, regardless of whether you or your ex is the one who’s paying them off. Or maybe you fell behind on your credit card payments because of an extended illness, which hurt your score.

Both situations may have been beyond your control, but they still impact your credit negatively and make you seem like a bigger risk. Let’s look at how a 495 credit score affects your ability to get different types of credit.

Can I Get a Credit Card with a 495 Credit Score?

Credit cards let you buy things now and pay for them later. You may be able to get a credit card with a 495 credit score, though you might be limited to a secured credit card. Secured credit cards usually require a cash deposit to open; the deposit may double as your credit limit.

Secured cards can help you build credit if your account history is reported to the credit bureaus. Another plus is that a low credit limit can keep you from piling up a lot of debt. Some secured cards offer added perks, like earning cash back when you make eligible purchases.

Over time, you may be able to graduate to an unsecured card and get your cash deposit back. One drawback of secured cards is that they sometimes have higher interest rates. So the best way to use them to build credit is to pay off the balance in full each month.

If you have credit cards you’re trying to pay off, you could use a balance transfer or a credit card consolidation loan to lower your rate. On-time payments can get your credit health back on track, and you could save money on interest as well.

Can I Get an Auto Loan with a 495 Credit Score?

A 495 credit score car loan is possible, though it’s likely to be expensive. Rather than getting a car loan through a bank or an online lender, you might be limited to on-the-lot or in-house financing.

There’s no minimum credit score required for a car loan, but lenders typically look for borrowers with good credit. That means a score of 670 or better on the FICO scale, though you could qualify with fair credit, which ranges from 580 to 669. The higher your score is, the lower your rates are likely to be.

If you’re interested in a car loan and have bad credit, shop around. Compare loan terms, rates, and fees from multiple lenders or dealerships to estimate how much you’ll pay. If you can hold off on buying a car for now, you could work on improving your credit score, which could help you get a more favorable loan.

Can I Get a Mortgage with a 495 Credit Score?

Mortgage loans are secured by the home you’re buying. That means if you don’t make your payments as agreed, the lender can foreclose on the home and take the property in place of repayment.

That reduces some of the risk to the lender, but it’s still very difficult to qualify for a mortgage with a 495 credit score. Even FHA loans, which are government-backed and designed for people with less-than-perfect credit, require a minimum credit score of 500 to qualify. If you’re just below that threshold, you may need to wait a little for your credit to improve.

Conventional loans, meanwhile, typically require a 620 credit score. If you’re interested in a VA loan, there’s no minimum credit score required by the government, but lenders may look for a 620 score or better. The USDA loan program doesn’t have a minimum either, but lenders generally require a minimum score of 640.

Can I Get a Personal Loan with a 495 Credit Score?

Personal loans let you borrow a lump sum of money for a wide variety of reasons. Usually, these loans are unsecured, which means you don’t need a cash deposit or any other collateral to qualify.

You may be able to get an unsecured personal loan with a 495 credit score, though the terms may not be the best. If you’re interested in a personal loan for bad credit, check online lenders, banks, and credit unions to see how the options compare. Use a personal loan calculator to estimate your costs.

Peer-to-peer (P2P) lending is another option if you’re looking for alternatives to personal loans. These loans are funded through multiple investors who pool their money to lend to borrowers. They make money off the interest they charge.

It may be easier to qualify for a P2P loan if you have poor credit. The trade-off is that the interest rates may be higher. However, these loans are typically not in the same predatory category as payday loans or title loans, which are best avoided whenever possible.

The Takeaway

Is a 495 credit score good or bad? It’s not good, but it’s not the end of the world either. If your score is in this range, ask yourself how you can improve it. Some of the best ways to boost a poor credit score include paying bills on time and reducing your debt.

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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