Is 510 a Good Credit Score?

By Jamie Cattanach

A credit score of 510 is considered poor and will likely impact your ability to access many types of loans and credit cards. But the good news is, with consistent effort, you can build your score over time. Let’s take a closer look at what a 510 credit score means and how to make it better.

What Does a 510 Credit Score Mean?

FICO Scores, which are used in the majority of lending decisions, typically range from 300 to 850. The higher the number, the better the score. Here’s how FICO Scores are classified:

•   Poor: 300–579

•   Fair: 580–669

•   Good: 670–739

•   Very good: 740–799

•   Excellent: 800–850

As you can see, a credit score of 510 falls squarely in the “poor” category. Lenders may see that score and consider you to be more of a risk than a borrower with a higher score. As such, you may have a tougher time qualifying for loans and credit cards. And when you are approved, you’ll likely receive higher interest rates and less-favorable terms.

How to Build Your Credit Score

Five main components make up your FICO Score, and each one carries a different weight. They include:

•   Payment history (35%)

•   Amounts owed (30%)

•   Length of credit history (15%)

•   Credit mix (10%)

•   New credit (10%)

One of the most powerful things you can do to help your credit score is to make payments on each of your existing accounts on time, each and every month. It’s also a good idea to work on lowering any existing debt, such as existing loans or credit cards that carry a revolving balance. The length of your credit history is another important factor in your FICO Score, so think twice before closing out a well-established account.

What Else Can You Get with a 510 Credit Score?

While a 510 credit score may make it difficult to qualify for certain types of credit, it is still possible to get some types of debt with this score. But watch out for high interest rates, which can make it more difficult to get out of debt. Let’s take a closer look at different scenarios.

Can I Get a Credit Card with a 510 Credit Score?

Many credit card issuers offer products specifically geared toward borrowers with poor credit, particularly secured credit cards. As the name suggests, these types of cards are secured by a cash down payment that serves as your credit limit. In many cases, the issuer doesn’t even require a credit check. That can make a secured credit card a solid way to build credit over time, as long as you manage it responsibly.

Can I Get an Auto Loan with a 510 Credit Score?

There’s no specific minimum credit score needed to apply for an auto loan, but some lenders may be hesitant to offer loans to those with FICO Scores less than 670. If you do qualify for an auto loan with a credit score of 510, your borrowing costs may be significantly higher than those with higher credit scores.

Consider this: Each quarter, Experian tracks the average APR for new and used car loans. In the fourth quarter of 2024, buyers with subprime credit scores (501-600) were offered average rates of 13.08% on new car loans and 19.38% on used car loans. By comparison, buyers with super prime credit scores (781-850) were offered much lower rates of 4.77% on new car loans and 7.67% on used car loans.

Can I Get a Mortgage with a 510 Credit Score?

Buying a home can be one of the most powerful ways to build wealth over time. It is possible to get a mortgage with a credit score of 510, though it will likely be more challenging than it would be if your score were higher.

While conventional loans usually have a credit score minimum of 620 (along with other eligibility requirements), there are other types of mortgage loans you can consider.

•   FHA loans, which are offered to first-time home buyers and designed to make the barrier to entry lower for such shoppers, require a minimum credit score of 580 if you want to put down 3.5%. However, shoppers with scores as low as 500 might successfully apply if they can come up with a 10% down payment.

•   VA loans, which are offered to qualifying veterans and their spouses, do not carry a minimum credit score requirement. However, some lenders carry their own minimums, which may be closer to 620.

•   USDA loans are offered to low- to moderate-income households purchasing homes in qualified rural communities. Again, there’s no specified minimum credit score. However, individual lenders that participate in the program may set their own minimums, and it may be higher than 510.

Qualifying for a home loan with a 510 credit score is a challenge. If time allows, you may want to work on building your score before applying in order to help secure the best interest rates and terms available.

Can I Get a Personal Loan with a 510 Credit Score?

Unsecured personal loans often have strict eligibility requirements. After all, there’s no collateral for the loan other than your signature. While there are lenders out there who will offer personal loans to borrowers with credit scores as low as 510, chances are high that your interest rates will be significant. And this can make it harder to get out of a debt spiral.

A personal loan calculator can help you understand how much you stand to pay for a personal loan over time, considering the entire amortization of the loan.

You can also see if it makes sense to use a personal loan to pay off a high-interest credit card balance. With a credit card consolidation loan, for example, you may be able to streamline your finances and perhaps even save money.

The Takeaway

Is a 510 credit score good or bad? Short answer, it’s considered poor and could make borrowing more of a challenge. But the good news is, your credit score isn’t set in stone, and you can take steps to build it up over time, such as paying bills on time, lowering existing balances, and keeping older accounts open.

But keep in mind that you can make moves to improve your credit profile. Paying bills on time, keeping balances low, and keeping older accounts open can all help you increase your score — and put you in a better position to get approved for a credit card or loan.

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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