530 credit score: Is It Good or Bad?

A 530 credit score is considered poor and is often the result of a limited credit history or past financial mistakes. 530 falls significantly below the national average FICO score of 716 making it difficult to borrow.

Most lenders will not accept applicants with such low scores. If they do, they’ll charge much higher interest rates and extra fees like origination fees. The good news is anyone can rise above a poor rating.

Keep reading to learn how a FICO score of 530 compares, what personal loans you can get, and how you can improve it.

How does this score compare to others?

Is 530 a good credit score? No, it is not. A 530 FICO score falls into the very poor range. 16% of consumers have poor FICO scores of 300-579. Borrowers in this range have a 61% delinquency rate while borrowers with excellent scores (800-850) have a mere 1% delinquency rate.

Generally speaking, lenders prefer borrowers with scores above 600. Scores above 670 are classified as good while anything below 580 is deep subprime.

Number of open accounts by credit score range

Score Range	Average Number of Open Accounts
750-850	3
700-749	4
640-699	4
300-639	4

Data from Credit Karma

Borrowing with poor credit scores

Borrowers with less-than-ideal scores can still get approved for financing but with less favorable terms. Card applicants may be required to pay extra fees or put down a security deposit for a secured credit card.

Loan applicants will find it hard to qualify for an unsecured loan. If they do qualify it will be for a small loan amount and the loan terms may be harsh. It is possible to get an auto loan with a rating in the 500 range but the vast majority of mortgage lenders prefer applicants with a minimum score of 620.

Personal loans with a 530 credit score

Securing personal loans or auto loans with a low score is tough but not entirely impossible. Subprime lenders specialize in working with individuals in this score range. These lenders have lower minimum score requirements and more flexible criteria.

A 530 credit score loan typically comes with higher interest rates, additional fees like origination fees, and stricter loan terms. The extra costs act as insurance in case the borrower defaults.

Anytime you’re shopping for a loan it’s important to compare multiple lenders and consider the total cost. Look at the loan amount, interest rate, fees, and make sure you can afford the monthly payments.

Most mortgage lenders will not approve an applicant with a score this low. However, there are still mortgage lenders who will accept applicants with a 530 score. For instance, the U.S. Department of Veterans Affairs does not have minimum score requirements, so you may receive home financing through a VA loan.

What are the best personal loan options for someone with a 530 credit score?

The best options for a 530 FICO score personal loan are secured loans, cash advances, personal loans from credit unions, or adding a cosigner.

Get a secured loan

The best personal loans for a 530 score are secured loans. A secured loan requires an asset like a vehicle, property, or savings account to qualify. The asset reduces the risk for the lender as they can sell it to cover any overdue payments. As a result, it’s easier to be approved for secured loans with good loan terms and larger loan amounts.

Try a cash advance app

Cash advance apps provide a small loan amounts with no hard pull, no interest, and few to no fees. Most of the apps advance you a portion of your paycheck, which is then deducted on payday. They can be a lot cheaper than traditional personal loans but beware of tipping and do not rely on them.

Add a cosigner

If you don’t have an asset and want a larger amount than a cash advance, try to add a cosigner. A cosigner with a good score and a stable income adds a layer of security for lenders making them more likely to approve personal loans with favorable loan terms. You may even be able to secure a 530 credit score auto loan with a cosigner.

Visit a credit union

Credit unions offer traditional unsecured loans with more flexible lending criteria than big banks. You typically have to be a member to qualify but can get personal loans with lower interest rates, fewer fees, and possibly a larger loan amount.

What score is required to get a card?

Check out what score you need to get a credit card!

Get competing personal loan offers in minutes

Online lending platforms make finding personal loans both quick and convenient. You can submit one application and receive multiple loan offers from various lenders in mere minutes, all without damaging your rating.

These platforms work by conducting a soft pull to understand your financial standing. Based on this information, they match you with multiple lenders in their network who offer loans to consumers in your FICO score range. This process allows you to compare loan offers: interest rate, loan term, fee, loan amount, and other factors side by side to find the best loan for you.

Get tips and more on MoneyFor.

What are the advantages of a 530 credit score personal loan?

There are a few advantages to personal loans for a poor FICO score. Firstly, they provide immediate financial relief to cover unexpected expenses. Secondly, they can help raise your rating. If you’ve only had a card, a loan will increase your credit mix. Next, pay all your bills on time to show you’re responsible. You’ll only see a boost if you make timely payments and the lender reports to all three major credit bureaus.

What happens to your score if you don’t pay your loan?

Find out how debt impacts your credit score.

What do lenders consider when evaluating a potential borrower with a 530 credit score?

Lenders take into account a variety of factors beyond your rating. Looking past your three-digit number gives lenders a fuller picture of your financial life and helps them asses how likely you are to repay the loan.

Other factors they consider are:

Income level
Employment history and stability
Debt-to-income ratio (DTI)
Type and amount of debt
Payment history

Loans that do not consider your rating at all typically come with higher interest rates to protect the lender from potential defaults.

You can still qualify for a card with a lower score!

Explore credit card options for a 500 credit score!

How to get beyond a Very Poor credit score

Moving out of the very poor range is completely doable. As more and more consumers pay attention to their ratings, the average FICO score is increasing.

Check your credit report

Start by obtaining your reports from the three major bureaus: Equifax, Experian, and TransUnion. Review your reports carefully for inaccuracies and dispute any errors that could be negatively affecting your rating.

Next, pinpoint past mistakes. How is your payment history? Any late or missed payments? Accounts in collections? Or perhaps an old bankruptcy? Once you know what you’ve done wrong in the past you’ll know how to correct it in the future.

Get the tools you need to boost your score from our Credit Score Builder articles!

How to improve your 530 Credit Score

There are multiple ways to move your FICO score out of the very poor range. We’ll go over the big ones and offer a few tips to get you started.

Firstly, scores are calculated by looking at the following factors:

Payment history
Amount used
Length of time you’ve had accounts
Mix of account types
New inquiries

Pay your bills on time

Your payment history is important so making timely payments is essential. Late payments can really hurt your score. Set up reminders or automatic payments to ensure you never miss a due date. Timely payments are the best way to improve your rating.

Don’t let your credit card balances balloon

Aim to pay off your balances in full each month. Ideally, your utilization rate will be below 30% of your limit.

Pay down debt

Debt payment can raise your rating.

Prioritize paying off higher interest debts first. You’ll lower your credit utilization rate, save on interest costs, and free up more money to pay down other debts.

Think carefully before closing old credit card accounts

Closing old credit accounts seems like a good idea but doing so can actually hurt your rating. Closing accounts increases your usage and shortens the amount of time you’ve had accounts. Unless the card has a lot of fees, keep it open and active.

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

New applications trigger hard inquiries, which can temporarily lower your score. One application won’t have much of an impact, but applying for multiple cards in a short period can do damage and signals to lenders that you’re a high-risk borrower.

Get help building credit

Secured cards, credit-builder loans, and even unsecured cards can all help raise your rating. Another option is to report rent, utility, and subscription payments.

Is a poor score holding you back?

Click here for tips and tricks to build credit!

Bottom line

A 530 score is far from good in the very poor range. It makes it challenging to get a loan or card without a security deposit, but not impossible. If your FICO score falls into the poor range, you can find financing options, they just may cost you.

The better solution is to raise your rating so you can qualify for cheaper financial products in the future. To do this establish a positive payment history by making timely payments and keep your usage low. Boosting your rating won’t happen overnight, but a higher score is within your reach.

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

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.

Related scores

524 525 526 527 528 529 531 532 533 534 535 536

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530 Credit Score: Is It Good or Bad?

How does this score compare to others?