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494 Credit score: What You Need to Know in 2025
July 1, 2025
TL;DR
A 494 credit score provides a clear starting point for building a stronger financial profile and unlocking better lending options. This score falls into the "Poor" FICO category, which simply highlights the specific areas you can focus on to see significant improvement.
What Does a 494 Credit Score Mean?
A credit score of 494 falls into the "poor" range on the FICO Score model, which spans from 300 to 850. Scores in this category, typically between 300 and 579, signal to lenders that you are a high-risk borrower. This score is well below the U.S. average and suggests a history of significant financial challenges, such as late payments or defaults.
This score can severely limit your financial options. Lenders are likely to deny applications for new credit cards, mortgages, and auto loans. If you are approved for any form of credit, it will almost certainly come with very high interest rates and unfavorable terms. While this presents immediate obstacles, it's not an endpoint, but rather a baseline from which improvement is possible.
Who Has a 494 Credit Score?
While age isn't a direct factor in credit score calculations, there is a clear trend of scores improving over time. According to 2023 data from Experian, average credit scores break down by generation as follows:
- 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 494 Credit Score
A credit score of 494 falls into the "poor" credit range, which can significantly hinder your ability to qualify for traditional credit cards. Most lenders view this score as a high risk, meaning you're likely to face rejections for standard unsecured cards that offer rewards or low interest rates. Your options will probably be limited to products designed for building credit, such as secured credit cards that require a security deposit.
Kudos offers AI-powered tools like the Explore Tool, which uses a quiz to find cards that match your needs, and Dream Wallet, which analyzes your spending for tailored suggestions. These tools help you compare options from a database of nearly 3,000 cards and provide insights into how a new card could impact your credit score, ensuring you make a choice that fits your financial situation.
Auto Loans and a 494 Credit Score
A 494 credit score places you in the deep subprime category, which can make securing an auto loan challenging. According to a 2025 market analysis, lenders will likely offer you significantly higher interest rates and may require a larger down payment or have stricter approval terms.
- Super-prime (781-850): 5.25% for new cars and 7.13% for used cars.
- Prime (661-780): 6.87% for new cars and 9.36% for used cars.
- Non-prime (601-660): 9.83% for new cars and 13.92% for used cars.
- Subprime (501-600): 13.18% for new cars and 18.86% for used cars.
- Deep subprime (300-500): 15.77% for new cars and 21.55% for used cars.
Mortgages at a 494 Credit Score
With a 494 credit score, your mortgage options are extremely limited. Most conventional lenders will not approve borrowers with scores below 620. Your most viable path is likely an FHA loan, which allows scores down to 500. However, because your score is below 580, you would be required to make a minimum 10% down payment.
A low credit score also results in less favorable loan terms. You can expect significantly higher interest rates, making your loan much more expensive over its lifetime. Lenders will also conduct a stricter review of your finances, known as manual underwriting, where they will scrutinize your income stability, debts, and explanations for past credit issues.
What's in a Credit Score?
Figuring out what goes into your credit score can feel like trying to solve a complex puzzle, but it generally boils down to a handful of key elements. The most common factors include:
- Your payment history, which tracks whether you pay your bills on time, is the most significant factor.
- Credit utilization, or the amount of credit you're using compared to your total available credit, also plays a major role.
- The length of your credit history demonstrates your experience with managing credit over time.
- Having a healthy mix of different types of credit, such as credit cards and installment loans, can positively impact your score.
- Finally, recent credit inquiries, which occur when you apply for new credit, are also taken into account.
How to Improve Your 494 Credit Score
Improving a 494 credit score is entirely possible with a strategic and consistent approach. By taking deliberate steps, you can begin to rebuild your credit history and work your way toward better financial health.
- Monitor your credit reports. You can get free credit reports and should review them for any inaccuracies that could be dragging your score down. Disputing errors or fraudulent activity is a critical first step to stop your score from dropping further.
- Set up automatic bill payments. Payment history is the single most important factor in your credit score, and a 494 score likely reflects missed payments. Automating payments ensures you never miss a due date again, which is essential for building a positive track record.
- Become an authorized user. Ask a trusted family member or friend with a strong credit history to add you as an authorized user on one of their credit cards. This allows you to benefit from their positive payment history and low credit utilization, which can help improve your score.
- Apply for a secured credit card. A secured card requires a cash deposit as collateral, making it easier to get approved for with a low credit score. Making small purchases and paying the bill on time and in full each month will demonstrate responsible credit use to the credit bureaus.
Using a financial companion like Kudos can help you manage your cards and make smarter decisions to improve your credit score over time.
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