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490 Credit score: What You Need to Know in 2025
July 1, 2025
TL;DR
A 490 credit score offers a clear opportunity for financial improvement, although it is considered below average. This score falls into the 'Poor' FICO credit score category, which may limit your immediate borrowing options.
What Does a 490 Credit Score Mean?
A FICO score of 490 places you squarely in the "poor" credit range, which typically spans from 300 to 579. This score signals to lenders that you have a history of significant financial difficulties, such as late payments, accounts in collections, or even bankruptcy. It suggests a high level of risk, making financial institutions cautious about extending new credit.
With a 490 credit score, accessing new loans or credit cards can be a major hurdle. You'll likely face rejections or, if approved, be offered unfavorable terms like sky-high interest rates and hefty fees. This can make major life purchases, like a car or home, feel out of reach. While the path forward requires effort, understanding your standing is the first step toward rebuilding your financial future.
Who Has a 490 Credit Score?
While age isn't a direct factor in calculating your credit score, there's a clear trend of scores improving over time. Data shows that average credit scores tend to rise with each successive generation. Here is the average score by generation based on 2023 Experian data:
- Generation Z (ages 18-26): 680
- Millennials (ages 27-42): 690
- Generation X (ages 43-58): 709
- Baby Boomers (ages 59-77): 745
- Silent Generation (ages 78+): 760
Credit Cards With a 490 Credit Score
A credit score of 490 falls into the "poor" credit range, which can significantly hinder your ability to get approved for a new credit card. Most lenders view this score as a high-risk indicator, making them hesitant to extend credit due to concerns about potential defaults. While approval isn't impossible, you'll likely face less favorable terms, such as higher interest rates and lower credit limits, compared to applicants with better credit.
Kudos can help you find the right card with its AI-powered tools, which analyze your spending habits and financial goals to offer personalized recommendations from a database of nearly 3,000 cards. These tools also provide insights into how a new card might impact your credit score, empowering you to make a choice that supports your financial situation.
Auto Loans and a 490 Credit Score
A 490 credit score places you in the deep subprime category, which can make securing an auto loan more challenging. While approval is still possible, you should expect to face significantly higher interest rates and stricter lending terms.
According to a 2025 analysis, average auto loan rates break down as follows:
- Super-prime (781-850): 5.25% for new cars, 7.13% for used cars
- Prime (661-780): 6.87% for new cars, 9.36% for used cars
- Non-prime (601-660): 9.83% for new cars, 13.92% for used cars
- Subprime (501-600): 13.18% for new cars, 18.86% for used cars
- Deep subprime (300-500): 15.77% for new cars, 21.55% for used cars
Mortgages at a 490 Credit Score
With a 490 credit score, your mortgage options are severely limited. Most lenders for conventional, VA, and USDA loans will not approve an application. The closest mainstream option is an FHA loan, but its minimum requirement is a 500 score with 10% down. Since your score is below this threshold, securing a mortgage through traditional channels is highly improbable, with specialty lenders being a rare alternative.
If you do find a lender, expect challenging terms. A 490 score leads to much higher interest rates, increased fees, and a mandatory down payment of at least 10%. Lenders will also likely cap your borrowing amount and subject your finances to intense scrutiny through manual underwriting to offset their risk.
What's in a Credit Score?
Understanding your credit score can feel like trying to solve a complex puzzle, as it's a blend of several key financial habits. The most common factors that determine your score include:
- Your payment history tracks whether you have paid past credit accounts on time.
- Credit utilization is the percentage of your available credit that you are currently using.
- The length of your credit history considers the age of your oldest account and the average age of all your accounts.
- Credit mix refers to the variety of credit products you have, such as credit cards, retail accounts, and loans.
- New credit inquiries and recently opened accounts can also temporarily impact your score.
How to Improve Your 490 Credit Score
Your credit score plays a vital role in your financial life, but a low score isn't a life sentence. It is entirely possible to improve your creditworthiness with consistent, positive behavior, and many people see meaningful changes within a few months.
- Monitor your credit reports. Errors and inaccuracies can unfairly drag down your score, and getting them removed is one of the fastest ways to see an improvement. Regularly checking your reports helps you spot these mistakes and dispute them immediately.
- Set up automatic bill payments. Your payment history is the single most important factor in your credit score calculation. Automating payments ensures you never miss a due date, which is a critical step toward rebuilding your credit from a low score.
- Apply for a secured credit card. These cards are designed for people with damaged credit and are easier to obtain because they require a cash deposit. Making on-time payments on a secured card helps you build a fresh, positive history with the credit bureaus.
- Reduce your credit utilization. Lenders look at how much of your available credit you're using, and a high ratio is a red flag. Paying down your balances to get below a 30% utilization rate shows you can manage debt responsibly and can give your score a significant boost.
You can use tools like the Kudos browser extension to help manage your cards and monitor your score as you work to improve it.
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