A credit score is a measure of your creditworthiness. It ranges from 300 to 850 and lenders use it to decide whether you are likely to repay your loans.
Your credit score is calculated by the three major credit bureaus based on five factors. These include your payment history, amounts owed, credit history, new credit and types of credit used.
Overview of a 470 Credit Score
Your credit score is a number that reflects your financial history and helps lenders decide whether or not to extend you a loan. Your score ranges from 300 to 850, with a high score being more desirable than a low one.
While a credit score does not completely predict your ability to pay back a loan, it is still an important factor for lenders when considering whether or not to grant you credit. Understanding how a credit score works, what the different scoring ranges mean and how to improve your score can help you make smarter lending decisions in the future.
Your credit score is calculated by examining a variety of factors including your payment history, amounts owed and length of credit history. It also takes into account new accounts and types of credit used. The first two factors make up 35% of your score, while the credit mix and new accounts contribute 10% each.
Credit Card Options with a 470 Credit Score
A credit score is a three-digit number used to gauge your financial history, and lenders consider it a good indicator of future loan and credit card approval. A score between 300 and 850 is considered good, while a score below 580 is considered poor.
A 470 credit score is in the low-to-very-poor category and indicates that you have had significant payment problems in the past. This can include things like collection accounts, judgments, and bankruptcy.
Unfortunately, getting a loan or credit card with a 470 credit score is difficult to impossible – unless you are willing to put down deposits or shell out extra fees. Lenders see a 470 credit score as a high risk, and they are likely to charge higher interest rates than borrowers with better scores.
Auto Loans with a 470 Credit Score
If you have a credit score of 470, you have more options for car loans than you would if your score was higher. However, these options may come with high interest rates and other drawbacks.
Fortunately, there are lenders that specialize in bad credit auto loans and are willing to work with borrowers who have low scores. These lenders offer competitive rates and have a higher chance of approval than you might find through traditional car finance companies.
These lenders can also help you find a dealer in your area that is more receptive to working with car buyers with lower credit. Using an online auto financing marketplace like myAutoloan allows you to compare loan offers from multiple lenders and find one that has a better fit for your situation.
Personal Loan Options with a 470 Credit Score
Having a 470 credit score can make it difficult to qualify for unsecured credit, like personal loans or credit cards. This is because a 470 credit score indicates that you have experienced some past credit challenges, like late or missed payments, accounts in collections or a bankruptcy.
It also means that you have a high credit utilization rate, which is when your balances on your credit cards exceed 30% of their limit. This may seem a bit extreme, but it can be a sign of an unmanageable debt load or just a poor money management strategy.
However, the good news is that it’s not impossible to get a personal loan with a 470 credit score if you shop around and know what to look for. The key is to avoid paying too much in interest and fees. If you can, save your money for something more important, such as a down payment on a new home or car.
Mortgages with a 470 Credit Score
A 470 credit score can make it difficult to qualify for many mortgages, especially those backed by FHA or VA. This is because lenders consider borrowers with poor credit to be high-risk.
Even if you do get approved, your interest rate will likely be higher than those of people with better credit scores. This can make taking out a mortgage a financial burden for you, and one that you might not be able to afford.
If you do need to take out a mortgage, try to find a lender that offers a home loan with fixed interest rates. This will help to avoid the escalating fees that can come with adjustable-rate mortgages (ARMs). You might also be able to find a home equity loan or line of credit from a bank, although it is usually more difficult to get approved than a traditional mortgage.