Home Credit Score What does a 490 credit score mean?

What does a 490 credit score mean?

490 Poor
Updated April 25, 2024
Written by Rachel Alulis

A 490 credit score is considered to be a below-average credit score. Scores range from 300 to 850 with higher being better. Any rating under 580 is considered poor and suggests a history of late payments, accounts in collections, or even past bankruptcies.

When your score falls in the poor range, you will have a hard time securing personal loans or cards without putting down money or assets upfront. While difficult to find, there are lenders willing to work with consumers who have low scores.

Let’s explore what a 490 credit score means, what your options are, and how you can raise your rating.

Popular credit cards for a 490 credit score

Pretty much any secured card is suitable for someone with a score of 490. Secured cards require a security deposit, which sets your limit. Most deposits start at $200, but you can find a secured credit card with a $100 deposit. If you cannot afford to make a deposit for a secured card, look for one with no minimum deposit requirement at all.

It will be difficult to be approved for an unsecured card with such a low score, but not impossible. A few issuers accept consumers with scores below 500. Any unsecured card for consumers in this range will have a high interest rate, low limit, and extra fees like an annual fee.

Check out even more credit card options!

Can you get approved with a 490 credit score?

Lenders require you to meet their minimum credit score requirements before they will approve you. If you have a 490 rating it’s likely you’ll only qualify for secured loans or secured cards. Most lenders prefer borrowers with good to excellent ratings. Ratings in this range demonstrate an optimal payment history – a very important factor for lenders.

Fortunately, there are lenders willing to work with consumers with very poor scores. These lenders though will charge high interest rates, excessive fees, or require collateral in order to access funds. They also will only approve a small loan amount on any personal loans. They may not be the best, but they do allow you to borrow.

How high does your score need to be to qualify?

It doesn’t have to be that high to get a credit card!

What are the best personal loan options for someone with a 490 credit score?

Most 490 credit score personal loans will be secured meaning you need to put up an asset like your property or vehicle. If this isn’t an option, you can try to get a personal loan from a credit union or online lender, consider a payday loan, or try a cash advance app.

The loan amount issued will likely be small. Always read the loan terms before you sign to ensure you can repay it.

Payday loans are best avoided since they come with extremely high APRs some upwards of 700%.

Credit unions offer loans to members who have very low scores.

Online lenders specialize in lending to consumers with lower scores. Choose wisely as you may find loans with high fixed APRs of 35.99%.

Online loan marketplaces let you get quotes from multiple lenders so find the one with the best deal for you.

Cash advance apps send you a portion of your paycheck early with no interest and few fees.

Interested in the effects of poor debt management?

Find out how your credit score will suffer and how to prevent it!

Are there any guaranteed loans for bad credit?

Some lenders advertise “guaranteed loans” to persuade people to apply, but this is simply a marketing tactic. Nothing in life is guaranteed but some loans have very lenient criteria making them extremely easy to qualify for.

Before you enter into a loan agreement, check the find print. Make sure you understand the loan terms, potential fees, interest rates, repayment terms, etc., and that you can afford to repay the loan.

Need credit and can’t wait?

Check out credit cards fro a 500 credit score!

What does it mean to have a 490 credit score?

Is 490 a good credit score? The quick answer is no.

Receiving a 490 score is never a good thing. A rating in this range indicates you either have a limited credit history or have made several significant mistakes.

The following factors can contribute to a low rating:

  • Been more than 90 days late on a bill or debt payment
  • Defaulting on a loan or credit card debt
  • Having a credit utilization rate of more than 30%
  • Accounts in collections
  • Filing for bankruptcy

A few missing payments alone will not bring your score down to 490, but missing several payments and defaulting on personal loans and cards can lead to a 490 score. Once your FICO score falls below 500, it will be much more challenging to get approved for personal loans or cards. 

Read more about your credit score!

How bad is a credit score of 450?

A FICO score of 450 is considered very poor by most lending standards. This score is significantly lower than average and indicates a high risk of default. Consequently, it will be very difficult to secure loans or cards with favorable interest rates and terms. If you able to get a loan, it will either be a secured loan or come with extra fees, short repayment terms, and high interest rates. The same is true with any cards you’re offered. They will likely have sky high interest rates and lots of fees.

A score this low will also make landlords wary of renting to you. Utility companies may require a security deposit to secure basic services. It can also influence employment opportunities, particularly in financial sectors, and cause your insurance premiums to go up in some states. Improving your score should be a top priority.

Want to enhance your credit score? Dive into Credit Score Builder today!

How to improve your 490 credit score

You don’t have to live with a 490 rating forever. There are actions you can take to raise your rating to the good or excellent range. FICO scores are calculated by the following factors:

  • Payment history
  • Utilization rate
  • How long you’ve had accounts
  • Types of accounts
  • New inquiries

The first thing you should do is review your credit reports and figure out what you’re doing wrong.

Number of open accounts by credit score range

Score RangeAverage Number of Open Accounts
750-8503
700-7494
640-6994
300-6394
Data from Credit Karma

Feeling restricted by your bad rating?

Check out our tips that make building credit easy!

Make on time payments for your credit scores

The best thing you can do is to pay all your bills on time. Late payments will lower your rating.

Don’t let your credit card balances balloon

Do not use more than 30% of your limit. Keeping your utilization rate low shows lenders that you aren’t reliant on borrowing money. Plus you won’t be charged interest on your balance.

Don’t apply for too many new credit cards at the same time

Each time you apply for a financial product, the issue will conduct a hard inquiry on your credit report. Hard inquiries lower your score by a few points. One isn’t a big deal but multiple ones will have a detrimental effect.

Wait at least six months between applications to give your rating time to bounce back. 

Think carefully before closing old credit card accounts

When you pay off your old accounts it’s a good idea to close them, right? Wrong. Closing old accounts reduces your rating. It’s better to keep them open and active.

The exception is if your account has a large annual fee, then you may want to close it.

Learn more at MoneyFor!

Bottom line

Is 490 a bad credit score? Yes, 490 is a poor credit score that will make it hard to secure financial products. The loans and cards you are offered with be costly.

The good news is you can change it by making timely payments, keeping your balances low, and applying sparingly. It will take time and consistent effort but your rating will go up.

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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.
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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.
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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.
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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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