Home Credit Score What does a 480 credit score mean?

What does a 480 credit score mean?

480 Poor
Updated April 30, 2024
Written by Rachel Alulis

A 480 credit score is a very poor credit score. This score falls significantly below the average credit score of 715 and indicates a poor payment history, lots of missed payments in the past or a limited credit history. A score in the poor range will make it challenging to qualify for a personal loan or card that doesn’t require collateral or a security deposit.

The good news is there are financial products available for a 480 credit score. You will most likely receive a higher interest rate and extra fees but you can get approved. The better route is to raise your rating.

Read on to find out what a 480 credit score means, what products are available, and what you can do to raise your rating.

What are the best personal loan options for someone with a 480 credit score?

You can get a loan with a 480 credit score but the personal loan you’re approved for may not have the most favorable terms. Expect personal loans for a small loan amount and with higher interest rates and extra fees like origination fees.

Secured loan

A secured loan can be a good choice if you have an asset like a vehicle or property you can put up as collateral. Be sure you can repay the loan as agreed or you risk losing the asset.

Best personal loans for low credit scores

Your best personal loan option may be a paycheck advance. Paycheck advance apps send you a portion of your earnings early – up to $750. There’s usually no hard pull, no interest, and few fees.

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Compare offers to find the best loan

To find the best 480 credit score loan, consider online marketplaces. These platforms connect borrowers with multiple lenders who offer personal loans for poor scores. Apply and compare personal loan terms to find the best one for you.

Loan purpose

Do you need a personal loan for medical bills, home repairs, or debt consolidation? If you’re looking for a debt consolidation loan, be sure it has lower interest rates than your current debt payments.

Loan amounts

Loan amounts for poor scores are typically low. You will likely only be able to borrow a few hundred to a few thousand dollars.

Early payoff penalty

Be wary of early payoff penalties. This is a fee imposed by some lenders if you repay the personal loan before the agreed-upon term. The fee serves to compensate the lenders for any missed interest payments.

Late fee

Late fees are charged when you make a debt payment after its due date. A late payment will both cost you money and further hurt your rating.

Annual Percentage Rate (APR)

The average APR for personal loans can vary significantly, ranging from 10% to 28% or higher. The specific rate you qualify for will depend on factors such as your score, income, loan amount, and the lender’s policies.

Origination fee

An origination fee a percentage of the total loan amount that the lender may charge as compensation for the services provided. The fee is typically deducted upfront when processing the loan application. How much the origination fee is for and if you’re charged one at all will depend on the lender and type of loan.

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Mortgages and home loans with a 480 rating

Mortgages and home loans are not possible with a 480 score. Even FHA loans want a score of at least 500. Fannie Mae and Freddie Mac require a rating of 620 or higher. Work on raising your rating and then apply for a mortgage with better interest rates and loan terms.

What does it mean to have a 480 credit score?

Your score determines what personal loans and cards you qualify for and with what terms. Scores range from 300 to 850 and are calculated by the three major credit bureaus from data on your report. A good credit score is above 670 while a bad one falls below 580. Hence 480 is a bad credit score and falls in the poor range.

Your rating matters because lenders use it to asses how risky of a borrower you are. A higher score tells them that you are likely to repay the money you owe. In turn, they will give you better interest rates and more favorable terms on personal loans. On the other hand, many lenders choose not to do business with applicants with low scores since they have a higher risk of default – not paying by the due dates.

FICO scores are broken down into the following five ranges:

  • Exceptional: 800-850
  • Very Good: 740-799
  • Good: 670-739
  • Fair: 580-669
  • Poor: 300-579

When you have a score in the poor range the best thing you can do is improve it.

Can you get approved with a 480 credit score?

Few lenders accept applicants with a 480 rating. This score reflects a payment history riddled with missed payments, debt payments more than 90 days late, excessive hard inquiries, late payments, and accounts in collection.

It’s challenging to be approved for a personal loan or card when you don’t have a good rating. A secured loan or secured card will easily be in reach when you have a poor score. Both of these options require you to put down money first. A high credit limit unsecured card is out of the question.

Age of open accounts by credit score range

Score rangeAverage age (years)
750-8507.5
700-7494.0
640-6993.6
300-6392.4
Data from Credit Karma

Popular credit cards for a 480 credit score

You may find it difficult to be approved for a card with a 480 rating. Your two main choices will be secured cards or unsecured cards for poor scores. Both can improve your score when used responsibly.

Secured cards

Secured cards are very easy to be approved for since they require a security deposit – the money 100% refundable when you close the account in good standing. The deposit sets your limit. The advantage of these cards is they have lower interest rates and fewer fees (maybe no annual fee) than unsecured cards for poor scores.

Unsecured cards

Unsecured cards do not require a security deposit but they will likely charge an annual fee, have lower limit, and a high interest rate.

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Fees & Rates of Сards for Bad Сredit

Annual Fee N/A
Intro APR N/A
Regular APR 10%
Credit Score Range 300-579
Monthly Fee $0

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How to improve your 480 Credit Score

A 480 rating means you have a long road ahead of you. Aim for the fair range and celebrate little wins along the way. A good score is possible with a little patience and consistent effort. Take the time to get there and you’ll be able to access better financial products.

Scores are calculated by weighing the following factors:

  • Payment history
  • Utilization rate
  • Length of time you’ve had accounts
  • Credit mix
  • New inquiries

Take all of these factors into consideration as you work to raise your rating but know that not all of them are weighed equally. A positive payment history is the most important of them all.

Check your credit report to understand your scores

Start by checking your reports from all three bureaus. Dispute any errors you find as this can give an immediate boost to your rating. Look for past mistakes to figure out what you need to correct. Do you have lots of late payments? Too many hard inquiries? A high utilization rate?

Find out your score

Checking your own score is a soft inquiry and will not hurt your rating. When you apply for a new account, the lender will conduct a hard inquiry, which can cause your score to drop by a few points.

Pay on time

Improving your rating starts with establishing a positive payment history. Making timely payments is the best thing you can do. Pay attention top your billing cycle and pay all of your bills by their due dates. Missed payments can drag down your score and a late payment will stay on your report for up to seven years.

Keep your balances low

Your credit utilization rate is your current balance vs. your limit. Try to keep your utilization low, preferably less than 30% of your limit. A low balance can do wonders for your rating. Consider paying more than the minimum due each billing cycle or make payments throughout the month to keep your balance low.

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Bottom line

A 480 score will make it difficult to be approved for a personal loan with favorable loan terms or card with rewards. The good news is scores aren’t set in stone. With a little work, you can establish a positive payment history and raise your rating. As your score improves, so do your chances of being approved for less costly personal loans and better cards.

1. Paycheck Advance is For eligible customers only. Your actual available Paycheck Advance amount will be displayed to you in the mobile app and may change from time to time. Conditions and eligibility may vary and are subject to change at any time, at the sole discretion of Finco Advance LLC, which offers this optional feature. Finco Advance LLC is a financial technology company, not a bank. Expedited disbursement of your Paycheck Advance is an optional feature that is subject to an Instant Access Fee and may not be available to all users. Expedited disbursements may take up to an hour. For more information, please refer to Paycheck Advance Terms and Conditions.
2. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group, Member FDIC, and Cross River Bank, Member FDIC. The Current Visa® Debit Card is issued by Choice Financial Group pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. The Current Visa® secured charge card is issued by Cross River Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your Card for its issuing bank. Current Individual Account required to apply for the Current Visa® secured charge card. Independent approval required.
3. Individual results may vary. Using your credit card responsibly may allow you to improve your credit score. Credit building depends on various factors, including your payment history, credit utilization, length of credit history, and other financial activities.
4. Faster access to funds is based on comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Direct deposit and earlier availability of funds is subject to timing of payer’s submission of deposits.
5. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group. Funds held in Savings Pods are FDIC-insured on a pass-through basis up to $250,000 at our partner bank Choice Financial Group, member FDIC
6. Actual overdraft amount may vary and is subject to change at any time, at Current’s sole discretion. In order to qualify and enroll in the Fee-Free Overdraft feature, you must receive $500 or more in Qualifying Deposits into your Current Account over the preceding 30-day period. For more information, please refer to Fee-free Overdraft Terms and Conditions.
7. You may earn Points in connection with your everyday spending and by completing other actions that Current designates as subject to the Current Points Program. The amount of Points granted for different actions as well as the purchase requirements necessary to earn Points will vary, and is subject to Current’s sole discretion. After qualifying, please allow 3-5 business days for points to post to your Current account. The Current Points program is not available to Teen Account holders. See Current Points Terms and Conditions.
8. Some fees may apply, including out of network ATM fees of $2.50 per transaction, late payment fees of 3% of any total due balance outstanding and past due for two or more billing cycles, foreign transaction fees of 3% of the full transaction amount (minimum $0.50), card replacement fees per card of $5 for regular delivery and $30 for expedited delivery, cash deposit fees of $3.50 per deposit, and third party processing fees.
9. Boost Bonuses are credited to your Savings Pods within 48 hours of enabling the Boost feature and on a daily basis thereafter, provided that the Savings Pod has accrued a Boost Bonus of at least $0.01. The Boost rate on Savings Pods is variable and may change at any time. The disclosed rate is effective as of August 1, 2023. Must have $0.01 in Savings Pods to earn a Boost rate of either 0.25% or 4.00% annually on the portion of balances up to $2000 per Savings Pod, up to $6000 total. The remaining balance earns 0.00%. A qualifying direct deposit of $200 or more is required for 4.00%. No minimum balance required. For more information, please refer to Current Boost Terms and Conditions.
10. Cryptocurrency services are powered by Zero Hash LLC and Zero Hash Liquidity Services LLC, and may not be available in all states. Terms and conditions apply. When you buy or sell cryptocurrency, a difference between the current market price and the price you buy or sell that asset for is called a spread. However, unlike most other exchanges Current does not charge an additional trading fee. Cryptocurrency transactions are a form of investment, and all investments are subject to investment risks, including possible loss of the principal amount invested. Cryptocurrency is not insured by the FDIC or any other government-backed or third-party insurance. Your purchase of cryptocurrency is not a deposit or other obligation of, or guaranteed by, Choice Financial Group or Cross River Bank. The cryptocurrency assets in your Zero Hash account are not held at Current, Choice Financial Group, or Cross River Bank. Current, Choice Financial Group, and Cross River Bank are not responsible for the cryptocurrency assets held in any Zero Hash account. Neither Current, Choice, nor Cross River Bank is involved in the purchase, sale, exchange of fiat funds for cryptocurrency, or custody of the cryptocurrencies. Terms and Conditions apply (platform and user agreements). Crypto on Current is not currently available in HI. Licensed to engage in Virtual Currency Business Activity by the New York State Department of Financial Services. This does not constitute investment advice.
11. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group. Your money is FDIC-insured on a pass-through basis up to $250,000 at each of our partner banks, Choice Financial Group and Cross River Bank, members FDIC.
12. Average value based on Fine Hotels + Resorts bookings in 2023 for stays of two nights. Benefits include daily breakfast for two, room upgrade upon arrival when available, $100 amenity, guaranteed 4PM late checkout, and noon check-in when available. Certain room categories not eligible for upgrade. $100 amenity varies by property. Actual value will vary based on property, room rate, upgrade availability, and use of benefits.
13. Up to $500 per Covered Trip that is delayed for more than 6 hours; and 2 claims per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.
14. The maximum benefit amount for Trip Cancellation and Interruption Insurance is $10,000 per Covered Trip and $20,000 per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.
15. Baggage Insurance Plan coverage can be in effect for Covered Persons for eligible lost, damaged, or stolen Baggage during their travel on a Common Carrier Vehicle (e.g. plane, train, ship, or bus) when the Entire Fare for a ticket for the trip (one- way or round-trip) is charged to an Eligible Card. Coverage can be provided for up to $2,000 for checked Baggage and up to a combined maximum of $3,000 for checked and carry-on baggage, in excess of coverage provided by the Common Carrier. The coverage is also subject to a $3,000 aggregate limit per Covered Trip. For New York State residents, there is a $2,000 per bag/suitcase limit for each Covered Person with a $10,000 aggregate maximum for all Covered Persons per Covered Trip. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.
16. Car Rental Loss and Damage Insurance can provide coverage up to $75,000 for theft of or damage to most rental vehicles when you use your eligible Card to reserve and pay for the entire eligible vehicle rental and decline the collision damage waiver or similar option offered by the Commercial Car Rental Company. This product provides secondary coverage and does not include liability coverage. Not all vehicle types or rentals are covered. Geographic restrictions apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.
17. Coverage for a Stolen or damaged Eligible Cellular Wireless Telephone is subject to the terms, conditions, exclusions, and limits of liability of this benefit. The maximum liability is $800, per claim, per Eligible Card Account. Each claim is subject to a $50 deductible. Coverage is limited to two (2) claims per Eligible Card Account per 12 month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.
18. When an American Express® Card Member charges a Covered Purchase to an Eligible Card, Extended Warranty§ can provide up to one extra year added to the Original Manufacturer’s Warranty. Applies to warranties of five (5) years or less. Coverage is up to the actual amount charged to your Card for the item up to a maximum of $10,000; not to exceed $50,000 per Card Member account per calendar year. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.
19. Purchase Protection is an embedded benefit of your Card Membership and requires no enrollment. It can help protect Covered Purchases made on your Eligible Card when they’re accidentally damaged, stolen, or lost, for up to 90 days from the Covered Purchase date. The coverage is limited to up to $10,000 per occurrence, up to $50,000 per Card Member account per calendar year. Coverage Limits Apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.
20. Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.
21. The secured Chime Credit Builder Visa® Card is issued by Stride Bank, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted.
22. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted.
23. The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.
24. There’s no fee for the Chime Savings Account. Cash withdrawal and Third-party fees may apply to Chime Checking Accounts. You must have a Chime Checking Account to open a Chime Savings Account.
25. To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.
26. Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.
27. Based on a representative study conducted by Experian®, members who made their first purchase with Credit Builder between June 2020 and October 2020 observed an average FICO® Score 8 increase of 30 points after approximately 8 months. On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score.
28. On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.
29. Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
30. SpotMe® on Debit is an optional, no fee overdraft service attached to your Chime Checking Account. To qualify for the SpotMe on Debit service, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account each month and have activated your Visa debit card. Qualifying members will be allowed to overdraw their Chime Checking Account for up to $20 on debit card purchases and cash withdrawals initially but may later be eligible for a higher limit of up to $200 or more based on Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Debit limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime’s sole discretion. Although Chime does not charge any overdraft fees for SpotMe on Debit, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe on Debit will not cover any non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. SpotMe on Debit Terms and Conditions.
31. Tipping or not tipping has no impact on your eligibility for SpotMe®.
32. Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.
33. Save When I Get Paid automatically transfers 10% of your direct deposits of $500 or more from your Checking Account into your savings account.
34. Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up from your Chime Checking Account to your savings account.
35. Mobile Check Deposit eligibility is determined by Chime in its sole discretion and may be granted based on various factors including, but not limited to, a member’s direct deposit enrollment status.
36. Funds are automatically debited from your Checking Account and typically deposited into the recipient’s Checking Account within seconds. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed.
37. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed. Non-Chime members must use a valid debit card to claim funds.
* EarnIn is not available for Connecticut residents
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About the author

Rachel Alulis

Rachel Alulis has been the lead editor for Moneyfor’s credit cards team since 2015 and for the financial rewards team since 2023. Before joining Moneyfor, Rachel worked at USA Today and the Des Moines Register. She then established a successful freelance writing and editing business specializing in personal finance. Rachel holds a bachelor’s degree in journalism and an MBA.

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