Your credit score is one of the most important indicators of your financial responsibility. It impacts everything from your ability to rent a home or apartment to your credit card application.
A credit score is based on five primary factors. These include payment history, amount owed, credit history, new credit, and credit diversity.
Overview of a 490 Credit Score
If you have a 490 credit score, you’re likely to find it difficult to get approved for most loan products. That’s because lenders consider credit scores in this range to be poor, and they tend to view borrowers with bad credit as high-risk.
Your credit score is calculated using a variety of factors, including your payment history, the amount you owe, your credit history, and your credit diversity (new accounts). You should check all five of your credit reports at least once per year to ensure that there are no errors.
Your credit utilization rate is another key factor that affects your 490 credit score. This is the percentage of your total available credit that you’re using. Maintaining a low utilization rate is essential for building a strong credit score.
Credit Card Options with a 490 Credit Score
A 490 credit score is considered a bad credit score and you likely won’t be able to qualify for most credit cards or loans, but there are still some options available to you. These cards can help you start to build up your credit while you get back on track with paying off debt and improving your overall financial health.
There are several types of unsecured credit cards for people with bad credit, including the Premier Bankcard(r) Grey Credit Card and Surge(r) Platinum Mastercard(r). Both of these credit cards may approve scores as low as 400. They charge a one-time program fee, annual fees, and monthly fees, but they are a great way to begin rebuilding your credit while securing an excellent interest rate and credit limit.
Auto Loans with a 490 Credit Score
The credit score you have plays a big role in the interest rates you’re offered for auto loans. You’ll also want to consider the age of your vehicle and its condition before deciding on a loan.
There are some things you can do to increase your credit score and reduce the amount of interest you pay. For example, try to improve your debt-to-income ratio by paying off credit cards or reducing your monthly payments.
You can also try to add a co-signer with good credit to help you qualify for a loan. If you’re able to, choose a shorter loan term to get lower monthly payments.
If you have a 490 credit score, there are still some options available to you for an auto loan. However, it is important to keep an eye out for predatory lending practices and high fees.
Personal Loan Options with a 490 Credit Score
A 490 credit score will likely get you approved for a personal loan, but your options will be limited. Those with higher scores can often secure a better interest rate and a wider variety of loans.
A personal loan can be used for debt consolidation, emergency expenses or a medical bill. You can also use it for a one-time purchase, such as a new car or home improvement project.
The interest rate you pay depends on your credit score and other factors, such as your income and debt-to-income ratio. Fair credit borrowers can usually qualify for a personal loan with an interest rate of 36% or lower.
You should always compare the annual percentage rates (APRs) of multiple personal loan options to find the best deal. This will give you the information you need to make an informed decision on which personal loan fits your needs and budget best.
Mortgages with a 490 Credit Score
A 490 credit score is a very low score, closer to the lowest possible credit score (300) than the highest credit score available (850). That’s because a credit score in this range signals that you’ve had significant payment problems in the past.
Getting a mortgage with a 490 credit score is extremely difficult, if not impossible. It’s best to focus on building your credit over time before applying for any type of loan.
Fortunately, there are a number of ways to increase your credit score and get the mortgage you want with the terms you need. The first step is to assess your current credit report and identify any negative items keeping your score suppressed. Then, customize and dispute any negative accounts with the credit bureaus to have them removed permanently.