By Jackie Lam

A 430 credit score is considered below average, according to FICO® and Vantage Score, two widely used credit scoring models. It’s also nearly 300 points lower than the national average credit score of 715.

If you have a credit score of 430, you may find it difficult to get approved for a loan or credit card. And those you qualify for may come with high interest rates and less-flexible terms. Boosting your credit score can help increase your chances of gaining access to credit and potentially make it cheaper to borrow money.

What Does a 430 Credit Score Mean?

When a lender loans you money, they want to know that you’ll be able to pay it back. Your credit score represents your creditworthiness, or how likely you are to repay the money you borrowed. Lenders consider this three-digit number when deciding whether to offer you a car loan, mortgage, personal loan, or credit card. It also helps them determine the terms they’ll offer you.

FICO credit scores, which are used in most lending decisions, are calculated based on a set of credit score factors. They include payment history, how much available credit you use, the length of your credit history, your credit mix, and how much new credit you’ve applied for recently.

FICO Scores range from 300 to 850. Here’s how credit scores are categorized:

•   Poor: 300–579

•   Fair: 580–669

•   Good: 670–739

•   Very good: 740–799

•   Exceptional: 800–850

Is 430 a good credit score? As you can see, it falls in the “Poor” range. There are several reasons behind a below-average score. For example, forgetting to pay a credit card bill, closing out one of your oldest accounts, maxing out credit cards, or applying for too many personal loans in a short period of time could all have a negative impact on your credit score.

Recommended: FICO vs. VantageScore

How to Build Your Credit Score

If you have a credit score of 430, it’s a good idea to focus on improving your score and boosting your chances of getting approved for a credit card or loan. Here are some credit-building strategies to consider:

•   Pay your bills on time, every time.

•   Pay down your 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. (More on both options in a minute.)

•   Check your credit report regularly and dispute any errors you see.

What Else Can You Get with a 430 Credit Score?

A 430 credit score signals to lenders that you might be a risky borrower, so getting the green light for that loan or credit card is likely more challenging. While your options are more limited than a borrower with a higher credit score, that doesn’t mean borrowing is impossible. Let’s take a closer look.

Can I Get a Credit Card with a 430 Credit Score?

There’s no single credit score required to qualify for a credit card. That said, with a 430 credit score, you may find it difficult to qualify for an unsecured credit card. And the ones you can get will likely carry higher interest rates, steeper fees, and fewer, if any, rewards and perks.

But all is not lost. You can explore getting a secured credit card, which involves putting down a cash deposit that’s usually equal to your spending limit on that card. A secured card typically has lower credit score requirements, less rigid financial criteria, and higher debt-to-income (DTI) ratios.

Another avenue to pursue is becoming an authorized user on someone else’s card. The primary cardholder adds you to their account, and you benefit from their positive financial habits. This can be a boon to your credit if the cardholder has solid credit and a track record of making on-time payments.

Can I Get an Auto Loan with a 430 Credit Score?

While you can get a car loan with a 430 credit score, it’s not very common. According to 2024 Experian data, only 1.9% of those with a deep subprime score (300 to 500 credit score) got a car loan.

If you are approved for a car loan, you’ll likely face a higher-than-average interest rate. The average annual percentage rate (APR) for borrowers with a 430 credit score is 15.43%, according to Experian. Meanwhile, car loan borrowers with excellent scores (781 or above) had an average APR of 5.08%.

You’ll likely have an easier time securing an auto loan if you have a cosigner on your auto loan. When you have a cosigner, you both apply for the loan and share financial responsibility for paying back the borrowed money. Your cosigner doesn’t also own your car, but they are listed on the loan agreement and are on the hook for making payments.

Can I Get a Mortgage with a 430 Credit Score?

It’s unlikely that you’ll be able to get a conventional mortgage with a credit score of 430. Most lenders require borrowers to have a 620 credit score or higher.

However, with some work, you might qualify for an FHA loan. These loans are backed by the Federal Housing Association (FHA) and require a minimum credit score of 580 with a down payment of 3.5%.

A VA loan may also be worth looking into. Although a 620-640 credit score is typically required for approval, some lenders might extend a home loan to borrowers with a poor credit score. Similarly, a USDA loan usually requires a credit score of at least 640. But borrowers with a lower score may still be eligible. Their loan will likely go through manual underwriting, and they may need to show a low DTI or a significant amount in savings.

Can I Get a Personal Loan with a 430 Credit Score?

There’s a lot to love about personal loans. You can use them for anything from covering an emergency, paying for a dream vacation, or consolidating debt. And if the loan is unsecured, you won’t need to put down collateral.

But can you get a personal loan with a 430 credit score? Perhaps, but you’ll likely face higher rates and less-flexible terms, and you may not get approved for the full amount you need. (Keep in mind that interest rates on personal loans are usually lower than those available on credit cards.)

You might have an easier time with a secured personal loan, which requires you to offer some sort of collateral, such as money stashed in a savings account, a certificate of deposit (CD), or car.

Once you’ve established a stronger credit profile, you could qualify for a credit card debt consolidation loan. There’s no set score to get approved, but lenders typically prefer to see a score of 670.

As you’re comparing loan options, it’s important to understand what your monthly payments will be based on the amount you’re planning to borrow and the interest rates you’re offered. A personal loan calculator can help you crunch the numbers.

Recommended: Guide to Credit Score Ranges

The Takeaway

Is 430 a good score? Unfortunately, it’s classified as “poor” by FICO and VantageScore, two widely used credit scoring models. While you may be able to qualify for certain loans and credit cards, chances are you’ll face higher fees and less-flexible terms.

Your best bet to save on interest and receive more favorable rates is to work on building up your credit score by paying bills on time, lowering debt, and keeping older accounts open. You can also look into other ways to get approved for financing, such as adding a cosigner to your loan application.

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.

By Jackie Lam

A 500 credit score is considered “poor” and is far below the average American’s credit score of 715.

If you have a poor credit score, take note: It could negatively impact your odds of securing a loan or credit card. And the credit you are offered may come with higher interest rates and less-favorable terms.

Let’s take a closer look at how a 500 credit score can affect your borrowing power.

What Does a 500 Credit Score Mean?

A credit score is a three-digit number that’s calculated using information found in your credit reports. Lenders use it to help determine your creditworthiness, or how likely you are to repay the money you borrow.

FICO® Scores, which are used in most lending decisions, are between 300 and 850. The credit score ranges are as follows:

•   Poor: 300–579

•   Fair: 580–669

•   Good: 670–739

•   Very Good: 740–799

•   Excellent: 800–850

As you can see, a 500 credit score sits solidly in the “poor” category. There can be various reasons for a bad credit score, including late or missed bill payments, maxing out credit cards, and closing old accounts.

There are ways to check your credit score for free. You can ask your bank, Experian, credit card company or lender, or a credit counselor if you can view your score at no charge. You might also have access to this information if you have a money management app.

Recommended: FICO Score vs. Credit Score: What’s the Difference?

How to Build Your Credit Score

If you have a credit score of 500, you’ll likely want to work on improving your credit. Fortunately, there are several ways to do that.

A good first move is to build a positive payment history by paying your bills on time, every time. Other strategies include paying down revolving debt, becoming an authorized user on a loved one’s credit card, and applying for a secured credit card and using it responsibly.

What Else Can You Get with a 500 Credit Score?

A borrower with a credit score of 500 is usually viewed by lenders as risky. If that’s your score, you may find it challenging — but not impossible — to get approved for a loan or credit card. Let’s take a closer look at what’s required for common types of credit.

Can I Get a Credit Card with a 500 Credit Score?

The good news: There’s no minimum credit score needed to qualify for a credit score. The not-so-good news: With a 500 credit score, you may have a smaller selection of cards with heftier fees and higher interest rates.

One avenue to consider is getting a secured credit card. As the name implies, a secured card requires a security deposit, which serves as collateral until you close the account. The security deposit usually matches your credit limit. This means if your security deposit is $250, for example, so is your credit limit.

A retail credit card can also be an option if you have a 500 credit score. These cards often have lower credit score minimums and debt-to-income ratios, and if used responsibly, can help you build your credit score. However, note that retail cards can have higher interest rates and lower credit limits than a traditional credit card. And any rewards and perks are tied to the card’s retailer or brand.

Can I Get an Auto Loan with a 500 Credit Score?

You may be able to secure a car loan with a credit score of 500, but the odds aren’t in your favor. According to 2024 Experian data, only 1.9% of those with a deep subprime score (300 to 500 credit score) got an auto loan.

Typically, these loans carry higher-than-average interest rates and less-favorable terms. Experian reported that the average annual percentage rate (APR) for borrowers with a 500 credit score is 15.43%. By comparison, borrowers with a score of 781 or higher had an average APR of 5.08%.

You may find it easier to secure a car loan if you add a cosigner. You’ll both be on the hook for making payments on the money you borrow, but the cosigner doesn’t own your car.

Recommended: What Is the Responsibility of a Cosigner on a Loan?

Can I Get a Mortgage with a 500 Credit Score?

When it comes to a conventional mortgage, most lenders prefer that borrowers have a credit score of 620 or higher. That said, lending criteria varies by the type of mortgage you’re seeking:

•   FHA loans: Securing a mortgage insured by the Federal Housing Administration (FHA) means you’ll need a down payment of at least 3.5% and a minimum credit score of 580. If you provide a 10% down payment or more, you can qualify for an FHA loan with a score of 500.

•   VA loans: Mortgages offered by the U.S. Department of Veteran Affairs typically require a minimum credit score in the 620 to 640 range. That said, you might come across a lender that approves prospective homebuyers with a lower score.

•   USDA loans: USDA loans typically require a minimum score of 640. Otherwise, you’ll need to provide a full credit review.

If you’re not in a hurry to buy a home, you might qualify for better rates if you paused and worked on raising your credit score.

Can I Get a Personal Loan with a 500 Credit Score?

Personal loans can be a good financing option because the funds can be used for nearly any purpose. They are usually unsecured, which means you don’t need to provide collateral to get approved.

While it’s possible to get a personal loan with a 500 credit score, you can expect it to come with higher interest rates and less flexible terms. (It’s worth noting that personal loans usually have lower interest rates than credit cards.) A more viable option may be a secured personal loan, which is often easier to qualify for, though it requires borrowers to put down collateral.

If you’re able to boost your credit score, you could qualify for a credit card consolidation loan, which can be useful if you want to knock down balances on high-interest credit cards. There’s no minimum score to get approved, but lenders generally want borrowers to have a score of 670 or higher.

Of course, to make the best choice for you, you’ll need to consider what types of rates, loan amounts, and terms you’ll likely qualify for. Shop around and see what makes the most financial sense. And use a personal loan calculator to figure out what your monthly payments will be based on the amount you want to borrow and the interest rates you’re offered.

The Takeaway

Wondering if a 500 credit score is good or bad? Unfortunately, it’s considered “poor” by credit scoring models, and you may find it challenging to get approved for credit cards and loans with good rates and terms.

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.