Loan Options With a 500 Credit Score: What to Know
Yes, you may be able to get a loan with a 500 credit score, but your choices will be limited and usually more expensive. Secured loans, credit unions and some online lenders may work with scores in this range. Expect higher interest rates and stricter terms, so compare offers carefully before you apply.
Lenders use your score to measure risk, and at 500 they see more of it. That can mean higher rates, smaller loan amounts or a rejection. Before you apply, it helps to know what’s on your reports. A 2013 FTC study found that 1 in 5 consumers had an error on at least one of their credit reports. Credit Saint has helped 350,000+ people work toward their credit goals.
Key takeaways
- A 2013 FTC study found that 1 in 5 consumers had an error on at least one of their credit reports.
- A 500 FICO score falls in the “poor” range (300–850 scale), which limits available loan types and increases interest costs.
- Many mainstream lenders prefer scores in the low- to mid-600s or higher for unsecured loans, though requirements vary. That leaves 500-score borrowers with fewer, costlier options.
- Credit Saint reviews your reports across all three bureaus and, with your authorization, may dispute information that may be inaccurate, misleading or unverifiable.
What Does a 500 Credit Score Mean to Lenders?
A 500 score sits near the bottom of the credit score range. Many traditional banks and credit unions set minimum scores between 620 and 700 for personal loans, so at 500 you fall outside that window. Lenders who will work with you often charge much higher interest rates to make up for the risk they see.
That higher rate adds up. On a $10,000 personal loan over three years, the gap between a good-credit rate and a poor-credit rate can mean hundreds or even thousands of dollars in extra interest over the life of the loan.
What Loan Options May Be Available With a 500 Credit Score?
Options exist, but each comes with trade-offs worth understanding before you apply. For a wider look, see our guide on how to get a loan with bad credit.
- Secured personal loans require collateral, such as a savings account or vehicle. Because the lender holds an asset as security, it may approve borrowers with lower scores. The risk is real: if you miss payments, you could lose the collateral.
- Credit unions are member-owned and sometimes take a broader view of creditworthiness. Some offer small personal loans to members with poor credit, especially if you already have a history with them.
- Online lenders include some that focus on subprime borrowers and may approve scores in the 500 range. Interest rates are typically high, so review all terms carefully before you commit.
- Payday loans and cash advances may accept any score, but they carry very high fees and short repayment windows. Consumer advocates widely caution against them for anything beyond a true short-term emergency.
If you’re also looking at cards, our guide to credit cards with a 500 credit score covers secured and starter options.
Could Errors on Your Report Be Affecting Your Score?
Your score is only as accurate as the reports behind it. The Fair Credit Reporting Act (FCRA) gives you the right to dispute information on your credit reports that is inaccurate, misleading or unverifiable.
Common errors include duplicate accounts, incorrect balances, accounts that don’t belong to you and payments wrongly reported as late. Any of these can pull a score down. You can get all three of your credit reports for free and check them line by line.
Credit Saint specialists review your reports across Equifax, Experian and TransUnion and identify questionable entries. With your authorization, our specialists may dispute information that may be inaccurate, misleading or unverifiable through the formal credit bureau dispute process. We monitor bureau responses and handle follow-up disputes when appropriate. You review and authorize, and we handle the steps from there.
How Does Credit Saint Help?
Getting a loan with a 500 score may be possible today. Our goal is to help make sure the information lenders see about you is accurate, through a structured dispute process and ongoing review.
We offer three service levels based on where you are in your credit journey:
- Credit Polish: for those beginning to address credit challenges
- Credit Remodel: for moderate situations with multiple reporting concerns
- Clean Slate: for complex situations that need the most thorough approach
Every plan includes credit report review, dispute preparation and monitoring across all three bureaus. You review your reports and authorize disputes, and our specialists handle the process from there.
Frequently Asked Questions
Start With Your Credit Reports
A 500 credit score is not permanent. But while it stays low, it can mean higher interest rates, rejected applications and fewer options. If information that may be inaccurate or unverifiable is part of the picture, it’s worth looking into now.
Credit Saint has helped 350,000+ people review their credit reports and challenge items that may be inaccurate, unverifiable or outdated. Our specialists guide the dispute process at every stage. You decide and authorize each step.
Get started today with your free consultation.
Start Now
(15,607+ reviews)
Ashley Davison
EditorAshley 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.