With years of experience and a passion for helping clients achieve their financial goals, our team is committed to guiding you on your journey to credit recovery and financial success.
Reviewed By:
Ashley Davison
Ashley Davison
Editor
Ashley is currently the Chief Compliance Officer for Credit Saint, previously the Chief Operating Officer. Ashley got into the Financial world by working as a Logistics Coordinator at Ernst & Young. Coming from a previous career in education, she is eager to teach the world every...
With a 500 credit score, borrowing costs you more — every single time.
What you’ll learn: which borrowing options are realistically available, which to avoid, and how to work toward better terms over time.
Borrowing money with a 500 credit score is possible. That’s the honest answer. But “possible” and “affordable” are two different things — and at 500, the gap between them is significant.
Most lenders who work with borrowers in the poor credit range do so at a premium. Higher interest rates. Shorter repayment terms. More restrictive conditions. That premium accumulates over the life of every loan you carry. Credit Saint has worked with more than 250,000 Americans navigating this exact situation. The pattern is clear — and so is the path forward. We’ve got this.
Key Takeaways
A 500 FICO score falls in the “poor” range on a 300–850 scale, limiting borrowing options and increasing costs.
1 in 5 consumers have errors on their credit reports that could be affecting their borrowing eligibility (FTC, 2013).
Options at 500 include secured loans, credit union products, and some online lenders — each with meaningful trade-offs.
Credit Saint reviews all three bureaus, may challenge questionable entries, and works to position clients for better borrowing outcomes.
BANNER_TYPE_1
Before you apply anywhere — find out what’s actually on your report. Start a free credit review and we take a thorough look.
What Lenders See at 500
A credit score of 500 sits in what FICO classifies as the “poor” range. Lenders use this classification to set their terms — and at 500, those terms reflect elevated risk from the lender’s perspective.
Conventional banks typically require minimum scores of 620 or higher for personal loans. Mortgage lenders often set floors even higher. Auto lenders may work with 500-score applicants but commonly apply significantly higher APRs to compensate.
What this means practically: you may be approved, but you pay more. More interest. More fees. More restrictive repayment schedules. And every one of those costs compounds over time.
Borrowing Options That May Be Available at 500
Your options exist — but each comes with trade-offs worth understanding before you apply.
Secured personal loans require an asset — a savings account, vehicle, or other collateral — that the lender holds as security. Because lender risk is reduced, approval thresholds are lower. The trade-off: missed payments can result in losing the collateral.
Credit union loans are often more flexible than traditional bank products. Credit unions are member-owned and may evaluate your full financial picture rather than relying solely on your score. If you’re a member of a credit union, exploring their small loan products is a reasonable step.
Online lenders specializing in poor credit have expanded access to borrowing for lower-score consumers. These lenders often use alternative underwriting criteria beyond your score. Interest rates are typically high — always review the APR, loan term, and total repayment amount before signing.
Peer-to-peer lending platforms connect individual borrowers with individual lenders. Approval criteria vary by platform, and some work with scores below 600.
Products to approach with caution: payday loans, cash advance products, and rent-to-own financing arrangements carry fee structures that can create cycles of debt that are difficult to exit. The CFPB has published extensive guidance on the risks associated with these products.
The Role of Credit Report Errors in Your Borrowing Costs
Here is what most people don’t consider before applying for a loan: your credit score may not accurately reflect your actual history. Errors on credit reports are well-documented. The FTC’s study found that 1 in 5 consumers identified at least one error on their reports.
Those errors — a late payment that was actually made on time, an account balance incorrectly reported, a collection account that belongs to someone else — can suppress your score meaningfully. A score held down by inaccurate information is costing you real money on every loan you carry.
The Fair Credit Reporting Act (FCRA) gives consumers the right to dispute information that is inaccurate, misleading, or unverifiable. Credit Saint reviews your reports across Equifax, Experian, and TransUnion. We identify questionable entries, may challenge them through the formal dispute process, and follow up as appropriate — all with your authorization. You review. You authorize. We handle every step from there.
How Credit Saint Works to Lower Your Long-Term Borrowing Costs
One way to work toward better borrowing terms is to address factors that may be affecting your credit profile. That’s what Credit Saint is built to do.
Credit Saint is BBB accredited, holds a 4.8-star Google rating from more than 15,000 reviews, and has been ranked #1 by Money.com, ConsumerAffairs, and CNBC. We’ve served more than 250,000 Americans since 2007. Over 96.4% of clients see results in the first 90 days, based on paying Credit Saint clients from May 2025 who had one or more items removed. Individual results vary.
We work with clients through the right service level for their situation:
Credit Polish — for those starting to address credit challenges
Credit Remodel — for moderate situations with multiple reporting concerns
Clean Slate — for complex, comprehensive situations requiring a thorough approach
You authorize every step. We work with you to review, challenge, and follow up on potentially inaccurate, misleading, or unverifiable items across all three credit bureaus.
If inaccuracies are part of what’s keeping your borrowing costs high, that’s worth addressing now. Start your review — we guide you through each step of the process.
Frequently Asked Questions
Options may exist, including secured loans, credit union products, and some online lenders. However, interest rates and fees at this score level are typically significantly higher than those available to borrowers with higher scores. Reviewing your credit report for potential errors before applying is a sound first step, as inaccuracies may be suppressing your current score.
A secured loan requires collateral — typically a savings account, vehicle, or other asset — which the lender holds as security. Because lender risk is reduced, secured loans are more accessible to borrowers with lower scores. Unsecured loans carry no collateral requirement but are harder to qualify for at 500, and typically carry higher rates when approved.
Under the FCRA, credit bureaus have 30 days to investigate disputes after a consumer files, though in some cases this period may extend to 45 days. Historical data suggests a typical 45-day process timeline for Credit Saint clients, though individual results vary based on the number and complexity of items. Over 96.4% of clients see results in the first 90 days, based on paying Credit Saint clients from May 2025 who had one or more items removed.
Each formal loan application typically triggers a hard inquiry, which may temporarily lower your score by a small number of points. Multiple applications in a short window can compound this effect. For mortgage and auto loan shopping, FICO’s scoring models typically group multiple inquiries within a short period into a single inquiry — but for personal loans and credit cards, each application is typically counted separately.
Start Working on Your Credit Today
Every month you borrow at poor-credit rates is a month the gap costs you. If inaccurate or unverifiable entries are part of what’s keeping your score at 500, that’s not a fixed condition. It’s something that can be actively addressed — and our specialists guide you through each step of the process.
Credit Saint has worked with more than 250,000 Americans to review and may challenge credit report inaccuracies since 2007. You authorize the process. We work with you to review and challenge potentially inaccurate, misleading, or unverifiable items across all three credit bureaus — and we handle every step.
Ready to understand what’s actually affecting your score?Contact Credit Saint today for a free consultation — we review your report and handle every step from here.
Ashley is currently the Chief Compliance Officer for Credit Saint, previously the Chief Operating Officer. Ashley got into the Financial world by working as a Logistics Coordinator at Ernst & Young. Coming from a previous career in education, she is eager to teach the world everything she knows and learn everything that she doesn’t! Ashley is a FICO® certified professional, a Board Certified Credit Consultant, a Certified Credit Score Consultant with the Credit Consultants Association of America, UDAAP certified, and holds a Fair Credit Reporting Act (FCRA) Compliance Certificate.
