No, 486 is not a good credit score In fact, it falls within the range of scores, from 300 to 579, considered Very Poor A 486 FICO® Score is significantly below the average credit score. Many lenders choose not to do business with borrowers whose scores fall in the Very Poor range, on grounds they have unfavorable credit.
What does this mean for you?
- You may have difficulty getting approved for loans, credit cards, and other forms of credit.
- If you are approved, you will likely have to pay higher interest rates and fees.
- You may be denied for certain jobs or housing opportunities.
However, there is good news. You can take steps to improve your credit score. Here are a few things you can do:
- Pay your bills on time. This is the most important factor in your credit score. Even one late payment can have a negative impact.
- Keep your credit card balances low. Aim to keep your balances below 30% of your credit limit.
- Don’t apply for too much credit at once. Every time you apply for credit, a hard inquiry is placed on your credit report. Too many hard inquiries can lower your score.
- Become an authorized user on someone else’s credit card. This can help you build credit history without having to open your own account.
- Dispute any errors on your credit report. You can get a free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once a year at AnnualCreditReport.com. Review your reports carefully and dispute any errors you find.
It may take some time to improve your credit score, but it is worth it. A good credit score can save you money on interest and fees, and it can open up new opportunities for you.
Here are some additional resources that can help you improve your credit score:
- Credit Karma: Offers free credit scores and credit reports, as well as personalized tips for improving your credit.
- WalletHub: Provides free credit scores and reports, as well as credit monitoring and credit improvement tools.
- Experian: Offers a variety of credit monitoring and credit improvement products.
- TransUnion: Offers a variety of credit monitoring and credit improvement products.
- Equifax: Offers a variety of credit monitoring and credit improvement products.
P.S I am not a financial advisor The information provided above is for general knowledge and informational purposes only, and does not constitute professional financial advice. It is essential to consult with a qualified financial advisor for any financial decisions or before making any investments.
Mortgages with a 486 Credit Score
Less than 1% of initial mortgages are given to borrowers with a credit score of 486, in part because FHA-backed home loans have a minimum score requirement of 500. Prior to applying, try to raise your credit score as this will facilitate approval and save you a significant amount of money on fees and interest.
Student Loans with a 486 Credit Score
Considering that nearly 25% of student loans are awarded to applicants with a credit score of 300–539, they are among the easiest loans to obtain when you have a low credit score. 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).
What’s a Good Credit Score (or Excellent, Fair, Bad)? What do credit score ranges mean (really)?
FAQ
What can you do with a 486 credit score?
Can I get a car loan with a 486 credit score?
Can I get a home loan with a 486 credit score?
What is considered the minimum good credit score?
What is a good credit score?
The base FICO ® Scores range from 300 to 850, and a good credit score is between 670 and 739 within that range. FICO creates different types of consumer credit scores. There are “base” FICO ® Scores that the company makes for lenders in multiple industries to use, as well as industry-specific credit scores for credit card issuers and auto lenders.
What is a good FICO score?
A good FICO score is 670 to 739, according to the company’s website. According to FICO’s most recently available data for October 2023, the average credit score was 717, which falls in the good range. FICO says scores of 580 to 669 are considered “fair” and 740 to 799 are considered “very good.” Anything at 800 or above is considered “exceptional.”
What is the highest credit score you can have?
The highest score you can have on the most widely used scales is 850. According to data from FICO, about 1.7% of all FICO scores were at the coveted 850 as of April 2023. And even if you do get there, the fluctuating nature of credit scores means you’re unlikely to keep it month after month.
What credit score do you need to get a mortgage?
USDA loans don’t have a set credit score requirement, but lenders typically require a score of at least 580. VA loans also don’t have a set minimum credit score, but lenders typically require a score of 620 or higher. Remember that your credit score plays a role in determining the interest rate and payment terms on a mortgage loan.