A credit score is a number that lenders use to judge your ability to repay loans. The score ranges from 300 – 850, and your score can affect the types of loans you can get as well as how much you’ll pay.
Your score is influenced by several factors, including how much debt you have and how often you use credit. One of the most important ways to improve your score is by paying bills on time.
Overview of a 472 Credit Score
A credit score is a number that lenders use to assess how risky you are as a borrower. They fall between 300 and 850, and they aren’t the only thing that lenders look at when making lending decisions.
Your credit score is calculated by the three major credit bureaus based on five primary factors: your payment history, amount owed, your credit history, new credit, and credit diversity. The more types of credit you have and the more responsibly you handle them, the higher your score will be.
It’s important to understand your credit score because it can impact your ability to get a loan and what kind of interest rate you will pay on that loan. Whether you’re looking to purchase a home, rent an apartment, or take out a credit card, knowing your credit score is essential to making smart financial decisions.
Credit Card Options with a 472 Credit Score
If you have a 472 credit score, there are a few things you can do to improve it. Increasing your credit score to the fair range (580-669) could help you access more credit options, lower interest rates, and reduced fees and terms.
You can also boost your score by keeping your balances low and making on-time payments. It’s best to keep your credit utilization rate under 30%, on a card-by-card basis and overall, to avoid hurting your score.
If you want to build your credit, applying for a secured credit card is an excellent option. These cards require you to put down a deposit equal to your credit limit. These loans are intended for people with poor credit scores and allow you to build your credit over time by making on-time payments.
Auto Loans with a 472 Credit Score
A credit score of 472 is considered a “poor” credit score, meaning it’s closer to the lowest score (300) than the highest one (850). This can make it difficult to qualify for unsecured credit, such as personal loans and mortgages.
However, an auto loan can be a great option for people with bad credit. These are backed by a vehicle and, as such, lenders have a better chance of recovering their money if the borrower defaults on payments.
Getting preapproved for an auto loan before you visit the dealership can make your car-buying process less stressful. It also shows the lender that you’re serious about getting a loan and that they can expect to receive payments on time.
As with all types of credit, keeping your balances low compared to your credit limits can help boost your score. Paying your bills on time and avoiding applications for new credit within six months of applying for a loan can also help.
Personal Loan Options with a 472 Credit Score
A credit score of 472 is considered extremely poor and lenders are unlikely to approve you for a personal loan. You’ll likely be asked to pay a large fee or deposit in order to cover the risk of lending you money, and your interest rates will be exorbitantly high.
Fortunately, there are some lenders that specialize in offering loans to bad-credit borrowers. These companies usually charge high interest rates, but they can help you get the money you need.
Before you apply, pre-qualify with NerdWallet’s lender marketplace to see how likely you are to be approved and preview potential offers. Then, submit your application to the lender you choose. It’s important to make sure you are able to afford the monthly payments before you commit.
Mortgages with a 472 Credit Score
A 472 credit score is considered to be “Very Poor” and your lending options are extremely limited. You will likely be rejected for loans & credit and those that you do secure will come with high interest rates, large fees and significant penalties.
The best way to avoid this is by working to improve your credit score. A credit repair agency can help you take the necessary steps to fix your bad credit and get you into a good position for future borrowing.
You may be able to qualify for a mortgage if you have a strong credit history and a down payment of 20% or more. However, you will need to work hard to boost your credit score before applying.