487 Credit Score: Meaning, Borrowing Options & How to Fix (2024)

A 487 credit score is a bad credit score, unfortunately, as it’s a lot closer to the lowest score possible (300) than the highest credit score (850). It indicates you’ve had significant payment problems in the past, perhaps even to the extent of going through bankruptcy or having your home foreclosed, which signals risk to potential lenders. As a result, a 487 credit score will make it difficult to qualify for a loan or unsecured credit card, and you will need to focus on rebuilding your credit before trying to get a mortgage, car loan, etc.

Key Things to Know About a 487 Credit Score

  • Credit Rating: 487 is considered a bad credit score.
  • What Borrowing Options Are Available: Most borrowing options are available, except for FHA-backed home loans. The terms of any loan options will not be attractive. For example, you could borrow a small amount with certain unsecured credit cards or a personal loan with no credit check, but the interest rates and fees will be high.
  • Best Way to Improve a 487 Credit Score: Apply for a credit card with no credit check and pay the bill on time every month.

If you sign up for a free WalletHub account, you can also get a personalized credit analysis, which will tell you exactly what you need to improve and how to do it. In addition, you can check your latest credit score for free on WalletHub to see exactly where you stand.

Check Your Latest Credit Score – 100% Free

Below, you can learn more about what a 487 credit score can get you and how to fix your situation.

What Does a 487 Credit Score Get You?

Note: It may be possible to qualify for an unsecured credit card, personal loan, auto loan or home loan in rare cases, but the terms are unlikely to be worthwhile. If you apply for the average offer, you’re more likely to be rejected than approved.

Opinions are our own. This content is not provided, commissioned or endorsed by any issuer.

Credit Cards with a 487 Credit Score

The best type of credit card for a 487 credit score is a secured credit card with no credit check when you apply. These credit cards offer high odds of approval even for people with the lowest credit score possible because your credit history doesn’t factor into the approval decision.

Popular Credit Cards for a 487 Credit Score

  • 487 Credit Score: Meaning, Borrowing Options & How to Fix (1)Best for Building Credit:OpenSky® Secured Visa® Credit CardOpenSky® Secured Visa® Credit CardLearn MoreLearn Moreon issuer's website
  • 487 Credit Score: Meaning, Borrowing Options & How to Fix (2)Low Annual Fee:First Progress Platinum Elite Mastercard® Secured Credit CardFirst Progress Platinum Elite Mastercard® Secured Credit CardLearn MoreLearn Moreon issuer's website
  • 487 Credit Score: Meaning, Borrowing Options & How to Fix (3)Low APR:Applied Bank® Secured Visa® Gold Preferred® Credit CardApplied Bank® Secured Visa® Gold Preferred® Credit CardLearn MoreLearn Moreon issuer's website

Car Loans with a 487 Credit Score

Less than 7% of auto loans go to people with a credit score in the 300-539 range, and the share of loans given to applicants with a 487 credit score in particular is likely just a small fraction of that.

As a result, your odds of getting approved for a decent auto loan are slim. You will need to compare your options carefully and consider either placing a bigger down payment or purchasing a vehicle that’s less expensive.

Mortgages with a 487 Credit Score

Well under 1% of first mortgages go to people with a 487 credit score, in part because FHA-backed home loans require a minimum score of 500. Working to improve your credit score before you apply will make it much easier to get approved and will save you a lot of money on interest and fees.

Student Loans with a 487 Credit Score

Student loans are among the easiest loans to get when you have a low credit score, considering that nearly 25% of them are given to applicants with a credit score of 300-539. A new degree may also make it easier to repay the loan if it leads to more income.

Note: Borrower percentages above are based on data from Equifax (Q3 2017).

How to Fix a 487 Credit Score

If you want personalized credit-improvement advice, just sign up for a free WalletHub account and check out the credit analysis page. You’ll find grades for each part of your credit score, telling you exactly what to fix, as well as specific advice for how to improve each area.

Below, you’ll find some of the most important pointers, which typically apply to most people with a 487 credit score.

  1. Avoid Quick Fixes: Any company that advertises the ability to quickly “repair” or “fix” your credit is a scam. There are no fast solutions to bad credit. Recovery is a process that will likely take at least 12-18 months, just to progress to a “fair” rating.
  2. Review Credit Reports for Errors: Your “bad” rating may be the result, at least in part, of erroneous information on your credit reports. So check your latest credit report for things like accounts you didn’t open and on-time payments mistakenly listed as late.
    And dispute any inaccurate records you find.
  3. Catch Up on Missed Payments: If you’ve missed some monthly payments, making them up could help prevent credit score damage from worsening, assuming your account hasn’t defaulted yet. At that point, the damage from delinquency will already be done, and your top concerns will be a collections account and a lawsuit. Both are bad for your credit score, but both can be avoided by repaying amounts owed.
  4. Explore Debt Solutions: When you have a lot of debt, it can seem like you’re out of options. But that’s not the case. There are several avenues you can explore for some measure of relief. For example, you could try to negotiate a debt settlement agreement, whereby some of your balance will be forgiven in exchange for you repaying the rest right away. Or you could propose a new payment plan to your creditor, also known as debt management. Even something as simple as consulting a non-profit credit counselor could go a long way.
    So at the very least, it’s worth considering how the most popular debt solutions compare and apply to your situation.
  5. Get a Secured Credit Card: Unsecured credit cards for bad credit tend to be a bad deal, offering little in the way of a loan at a hefty cost. And since a credit card is the most accessible credit-building tool available to consumers, it’s best to simply open a secured credit card. Secured cards are unique in that they require users to place a refundable security deposit, the amount of which serves as their spending limit. This protects issuers from risk, which enables them to charge minimal fees and offer nearly guaranteed acceptance.
  6. Always Pay on Time Moving Forward: Payment history accounts for the lion’s share of your credit score, and every month provides a new opportunity to improve in this regard. Each month you pay your credit card bill by the due date covers up previous mistakes just a bit, gradually establishing a new track record of responsibility.
    The best part is you don’t even need to use your credit card to benefit. If you don’t make any purchases, you’ll still be credited as paying on time when the issuer reports account information to the major credit bureaus each month. So if you don’t trust yourself to spend responsibly, remove temptation by locking your card in a drawer.
  7. Add to Your Deposit Over Time: The more credit extended to you, the faster your credit score will rise. And since you have control over your credit line when using a secured card, you can expedite your credit building efforts by simply depositing more money. Don’t worry, you’ll get your deposit back, minus any outstanding balances and fees (if any), when you close your account.
  8. Build an Emergency Fund: Setting money aside for financial emergencies won’t itself improve your credit score, but it will insulate you from the types of unforeseen events that could completely derail your credit building efforts. In fact, it’s best to begin feeding an emergency fund before focusing on getting out of debt – if you have any.

At the end of the day, you also just have to wait. Negative records in your credit report cannot be removed if they are accurate. They will remain for 7-10 years, depending on the offense, and the only thing you can do about it is dilute these records with positive information, such as reports of on-time payments.


Top 10 Resources for a 487 Credit Score

  1. Bad Credit Guide
  2. Why Did My Credit Score Drop? Top 10 Causes
  3. Free Credit Score Simulator
  4. How To Improve Your Credit Utilization

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487 Credit Score: Meaning, Borrowing Options & How to Fix (2024)

FAQs

487 Credit Score: Meaning, Borrowing Options & How to Fix? ›

A 487 credit score can be a sign of past credit difficulties or a lack of credit history. Whether you're looking for a personal loan, a mortgage or a credit card, credit scores in this range can make it challenging to get approved for unsecured credit, which doesn't require collateral or a security deposit.

What can I do with a 487 credit score? ›

What Does a 487 Credit Score Get You?
Type of CreditDo You Qualify?
Secured Credit CardYES
Unsecured Credit CardNO
Personal LoanNO
Auto LoanNO
1 more row

Can you recover from a 480 credit score? ›

There are no quick fixes for a Very Poor credit score, and the negative effects of some issues that cause Very Poor scores, such as bankruptcy or foreclosure, diminish only with the passage of time.

Can I buy a house with a 487 credit score? ›

It's highly unlikely you'll qualify for a conventional mortgage with your credit score. The lending standards of both Fannie Mae and Freddie Mac require a minimum credit score of 620, and even this level requires a strong debt-to-income ratio and a rather large down payment.

How can I fix my credit score with debt? ›

Here are seven steps you can take to begin improving your credit score.
  1. Check Your Credit Score And Credit Report. ...
  2. Fix or Dispute Any Errors. ...
  3. Always Pay Your Bills On Time. ...
  4. Keep Your Credit Utilization Ratio Below 30% ...
  5. Pay Down Other Debts. ...
  6. Keep Old Credit Cards Open. ...
  7. Don't Take Out Credit Unless You Need It.
Feb 8, 2024

How to get an 800 credit score? ›

Making on-time payments to creditors, keeping your credit utilization low, having a long credit history, maintaining a good mix of credit types, and occasionally applying for new credit lines are the factors that can get you into the 800 credit score club.

Can I buy a car with a 480 credit score? ›

It's possible to get approved for an auto loan if you have bad credit (sometimes called "deep subprime" credit), meaning a credit score under 580. But in many cases, options can be costly. To improve your odds of getting approved for a relatively affordable loan, follow these steps.

How can I raise my credit score 100 points overnight? ›

How to Raise Your Credit Score 100 Points Overnight
  1. Become an Authorized User. This strategy can be especially effective if that individual has a credit account in good standing. ...
  2. Request Your Free Annual Credit Report and Dispute Errors. ...
  3. Pay All Bills on Time. ...
  4. Lower Your Credit Utilization Ratio.

Can I pay someone to fix my credit? ›

Yes, it is possible to pay someone to help fix your credit. These individuals or companies are known as credit repair companies and they specialize in helping individuals improve their credit score.

How long does it take to repair a 450 credit score? ›

How long does it take for your credit score to go up?
EventAverage credit score recovery time
Bankruptcy6+ years
Home foreclosure3 years
Missed/defaulted payment18 months
Late mortgage payment (30 to 90 days)9 months
3 more rows
Jul 27, 2023

What credit score is needed to buy a $300K house? ›

The required credit score to buy a $300K house typically ranges from 580 to 720 or higher, depending on the type of loan. For an FHA loan, the minimum credit score is usually around 580.

What is FHA minimum credit score? ›

Credit score: While the FHA has set the minimum credit score at 500, many FHA-approved lenders require higher minimum FICO scores of at least 620. Down payment: While obtaining an FHA loan requires you to make a down payment, that payment doesn't necessarily have to come from your savings account.

What is the easiest home loan to get? ›

Government-backed loan options, such as FHA, USDA and VA loans, are typically the easiest type of mortgage to get because they may have lower down payment and credit score requirements compared to conventional mortgage loans.

What is the fastest way to repair your credit? ›

If you want to improve your credit quickly, the following strategies could help:
  1. Use a reputable credit repair service.
  2. Prioritize and pay outstanding debt.
  3. Explore secured credit cards.
  4. Become an authorized user.
  5. Develop a budget and stick to it.
Feb 27, 2024

How to wipe your credit history clean? ›

How to remove negative items from your credit report yourself
  1. Get a free copy of your credit report. ...
  2. File a dispute with the credit reporting agency. ...
  3. File a dispute directly with the creditor. ...
  4. Review the claim results. ...
  5. Hire a credit repair service. ...
  6. Send a request for “goodwill deletion” ...
  7. Work with a credit counseling agency.
Mar 19, 2024

How do I fix my credit myself for free? ›

How Can I Repair Credit Myself?
  1. Request Credit Report. ...
  2. Review Reports Carefully. ...
  3. Dispute Any Incorrect Information. ...
  4. Pay Bills on Time. ...
  5. Pay Off Delinquent Balances. ...
  6. Decrease Your Credit Utilization, and Pay Down Your Debt. ...
  7. Open Different Types of Accounts. ...
  8. Keep Accounts Open.

What can I get with a credit score of 480? ›

The amount of money you can get through a personal loan with a credit score of 480 may not be very much. You may be able to get a few hundred dollars through payday loan organizations, or a few thousand through a secured loan like a title loan.

Can I buy a car with a 450 credit score? ›

In general, you'll need a FICO credit score of at least 600 to qualify for a traditional auto loan, but the minimum credit score required with vary from lender to lender. As interest rates increase due to inflation, securing a subprime auto loan may be more difficult — but not impossible.

Can you get a car with a 400 credit score? ›

No single number defines a bad credit score for a car loan. In general though, if your credit score is below the mid-600s, you can expect higher interest rates and more difficulty getting a loan. Because lenders consider many factors when approving loans, people with bad credit scores do get auto loans every day.

Can I buy a car with a 489 credit score? ›

While there is no set credit score to get an auto loan, a majority of approved borrowers have scores above 660. Having a low credit score won't necessarily keep you from getting an auto loan, but you will likely pay a higher interest rate.

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