A credit score of 474 is considered to be “Very Poor”. This means that you’ll have a hard time getting approved for credit cards or loans.
As a result, you’ll also have to pay higher interest rates. This is why it’s crucial to focus on boosting your credit score.
Overview of a 474 Credit Score
A 474 credit score is considered “Very Poor” by many lenders. As a result, your lending options are limited and you’ll have a hard time obtaining unsecured credit (like personal loans).
However, if you can improve your credit score to the “Fair” range (between 580-669), you’ll find it easier to secure more affordable financing options with better terms and interest rates. The good news is that a few things count towards your credit score, including the type of credit you have and how responsible you are with it.
You can also boost your credit score by keeping your credit utilization rate low, on a card-by-card basis and overall. This is a key factor that contributes to as much as 30% of your FICO(r) score, and it’s important that you manage your credit responsibly.
Credit Card Options with a 474 Credit Score
Credit scores are a measure of how well you repay loans. They’re usually based on a scale from 300 to 850. A 474 credit score is considered poor, which means that lenders see you as a risk and aren’t likely to lend you money.
In addition, a bankruptcy filing will show up on your credit report, which can hurt your score significantly. These reports remain on your credit history for up to 10 years.
Fortunately, there are several options for borrowers with poor credit. One of them is a secured credit card, which requires a deposit to open the account and reports your payment history to the credit bureaus. Another option is being added as an authorized user on a friend’s credit card or a cosigner.
Auto Loans with a 474 Credit Score
If you have a 474 credit score, there are still plenty of auto loans available to you. However, you should take time to rebuild your credit before buying a car.
The good news is that your credit score isn’t the only thing lenders consider when deciding whether to approve you for a loan. They also look at your debt-to-income ratio and employment history.
That said, you can improve your credit score by making on-time payments and paying down your debts. Taking steps to improve your credit will benefit you in many ways, including helping you qualify for a lower interest rate on an auto loan.
You can use a cosigner to secure an auto loan with a lower interest rate. If you have a trusted family member or friend who has good credit, ask them to cosign the loan with you.
Personal Loan Options with a 474 Credit Score
A 474 credit score is considered a poor credit rating, which means you’ll have a hard time getting approved for most types of unsecured loans. Most personal lenders want a much higher credit score than this.
Fortunately, there are some personal loan options for those with low credit scores. However, most of these loans are high-interest and have higher fees than loans for people with good credit.
If you’re unsure what type of loan is best for you, consider working with a non-profit credit counselor to develop a plan for managing your debts and rebuilding your credit. This may include paying off debts on time and keeping your balances under 30% of your credit limit.
Mortgages with a 474 Credit Score
A credit score is one of the most important numbers in your life. It affects your ability to borrow money and the interest you pay on loans. A poor score can make it difficult to get approved for credit cards, mortgages, auto loans and more.
Your credit score is based on a number that falls within a range from 300 to 850. A 474 credit score is considered to be very poor and can limit your borrowing options.
If you have a 474 credit score, you should work to rebuild your credit before applying for new credit. This can take time and be challenging, but it can also help you avoid paying high interest rates on loans in the future.
You can build your credit by establishing a mix of different types of credit accounts, such as credit cards and instalment loans. You should keep your credit utilization ratio to 30% or lower.