Whether you’re a new credit user or an experienced consumer, your 487 credit score can affect virtually all of your financial decisions.
One of the primary factors that count toward your score is payment history. Missed or late payments will hurt your credit score.
Other factors that can impact your score include length of credit history and the types of credit you have. The key is to keep all your accounts in good standing and manage them responsibly.
Overview of a 487 Credit Score
A 487 credit score is categorized as Very Poor by FICO and VantageScore (the companies that produce the leading credit scoring models). This means your credit isn’t good enough to qualify for many loans or credit cards.
The best way to improve your credit is by making on-time payments. This will help your credit by telling lenders that you are a responsible borrower and low-risk investor.
Another factor that affects your 487 credit score is the length of your credit history. This accounts for up to 15% of your FICO credit score.
This means that if you have been a credit user for a long time, you are more likely to get approved for loans and credit cards. However, new credit users should be patient and avoid bad habits to build up their credit history in a responsible manner.
Credit Card Options with a 487 Credit Score
If you have a 487 credit score, you can get a variety of different credit cards. These can range from unsecured to secured, depending on the lender and your personal financial situation.
The most important thing to remember is that making your payments on time is critical for boosting your credit score. Your payment history makes up 35% of your credit score, so pay on time and in full every month to keep your credit healthy.
Another factor to consider is your utilization rate, or how much you are using on each of your credit cards. Keeping your utilization below 30% can help you to avoid hurting your credit and increasing your interest rates.
One of the most effective ways to build credit is to apply for a secured credit card. These are typically available to new to credit (NTC) users, and come with small credit limits and a security deposit.
Auto Loans with a 487 Credit Score
Your credit score can make a huge difference on your ability to get approved for auto loans. The higher your credit score, the better interest rates and terms you’ll be able to receive.
Your score is based on your credit mix, payment history, amount owed and available credit. The most common scores lenders use are the FICO score and VantageScore.
Your credit score can also be affected by derogatory marks on your credit reports, such as accounts in collections or late payments. These can be removed from your report after two years, but some derogatory marks may stay on your report for up to 10 years.
Personal Loan Options with a 487 Credit Score
If you have a 487 credit score, you are considered to be in the “Very Poor” credit range (300-579). You may experience a variety of challenges with obtaining unsecured credit, including a high interest rate and extra fees.
Personal loans are one option available to those with a 487 credit score. They can be an excellent way to help improve your credit history and increase your borrowing capacity.
However, it is important to note that not every lender will offer personal loans to people with a 487 credit score. This is due to the fact that credit scores aren’t a perfect predictor of a borrower’s ability to repay a loan.
If you have a 487 credit score, it’s best to avoid payday loans and other high-interest personal loans. These types of debt are typically associated with long-term problems, and can lower your credit score even further.
Mortgages with a 487 Credit Score
Mortgages are one of the most popular ways to purchase real estate. Conventional and FHA loans are two of the most common options, but they require a minimum credit score of 620 for conventional and 580 for FHA mortgages.
A 487 credit score is a poor score, so it’s unlikely that you’ll qualify for a mortgage. You should look into other financing options, such as a personal loan with no credit check or an unsecured credit card.
Credit scores are based on information about your credit history and your ability to handle debt responsibly. They also take into account your mix of different types of credit, including revolving credit like credit cards and installment loans, such as mortgages and auto loans. Having a mix of these accounts can improve your credit score, but make sure you’re using them wisely and paying off debts promptly to avoid negative marks on your credit report.