507 Credit score: What You Need to Know in 2025

Who Has a 507 Credit Score?

While age isn't a direct factor in calculating your credit score, there is a clear correlation showing scores improve over time. According to 2023 Experian data, the average FICO score increases with each generation:

• 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 507 Credit Score

A credit score of 507 places you in the 'poor' credit range, signaling to lenders that you may be a high-risk borrower. Consequently, your chances of being approved for most traditional credit cards, especially those with attractive rewards and low interest rates, are significantly reduced. You'll likely need to focus on options designed for credit-building, such as secured credit cards or specific unsecured cards for bad credit, which often come with less favorable terms.

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Kudos offers AI-powered tools like Dream Wallet that analyze your real-time spending data to provide personalized credit card recommendations from a database of nearly 3,000 cards. The tool also provides insights on how different cards may impact your credit score, helping you find options that align with your financial situation and goals.

Auto Loans and a 507 Credit Score

A 507 credit score places you in the subprime category, which means lenders will view you as a higher-risk borrower. While getting an auto loan is still possible, you should expect to be offered significantly higher interest rates than applicants with stronger credit profiles.

• 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

These average interest rates are based on Experian's Q2 2025 data.

Mortgages at a 507 Credit Score

With a 507 credit score, your mortgage options are limited but not impossible. Your most viable path is likely an FHA loan, which accepts scores as low as 500, provided you can make a 10% down payment. While some specialty or subprime lenders may consider applicants with scores below 580, these programs are rare and have stringent requirements. Mainstream options like conventional, VA, or USDA loans are generally not available, as lenders typically require higher scores.

A 507 credit score will also lead to less favorable loan terms. You should anticipate a significantly higher interest rate compared to borrowers with better credit, which increases the total cost of your loan substantially over time. Lenders will also require a larger down payment and may subject your finances to a stricter manual underwriting process, scrutinizing your income, employment history, and past credit issues more closely.

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 history of making payments on time is the most significant factor.
• How much of your available credit you're currently using, known as your credit utilization ratio, plays a major role.
• The age of your credit accounts, including the average age and the age of your oldest account, is also considered.
• Lenders like to see that you can responsibly manage different types of credit, such as credit cards and loans.
• Opening several new credit accounts in a short period can be seen as a risk and may temporarily lower your score.

How to Improve Your 507 Credit Score

Improving your credit score takes time and consistent effort, but it is always possible to raise your number from 507. With the right financial habits, most people can see meaningful changes within three to six months.

• Establish automatic bill payments for all your accounts. Since payment history is the single biggest factor in your score, ensuring you never miss a payment is the most critical step to building a positive history and moving up from a 507 score.
• Reduce your credit utilization ratio by paying down balances. Keeping your used credit well below 30% of your total limit directly improves the second-most important part of your score, showing lenders you can manage debt responsibly.
• Become an authorized user on a credit card of someone with a good credit history. This allows their positive payment history and low credit utilization to be added to your credit file, which can provide a significant boost to a low score.
• Regularly monitor your credit reports from all three major bureaus. This helps you spot and dispute any errors or fraudulent activity that could be unfairly dragging your 507 score down.

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