Is 500 a good credit score?

Key takeaways

• A credit score of 500 falls into the poor category across the three main credit rating agencies (Experian, Equifax, and TransUnion)

• With a 500 credit score, you could still get a credit card, loan or mortgage, but it may be more challenging with higher interest rates, smaller credit limits, and loan amounts

• You can improve your credit score but it takes time, anything from six months to several

What is a 500 credit score?

When looking at the credit rating banding scores across the three main CRAs, none of them put 500 in their ‘fair’ or ‘good’ categoriesy. The main credit reference agencies in the UK are Experian, Equifax and TransUnion. In the table below, we’ve shown where 500 sits for each:

At Experian a low score is between 0-640, a fair score is 641-860, a good score is 861-1,000, and an excellent score is between 1,001 and 1,250.

At Transunion, a poor score is anything up to 565, a fair score is between 566-603, a good score is between 604-627 and an excellent score is between 628 and 710. It is currently updating its credit scale, starting in September 2026, so the score may be different depending on where you check your report.

At Equifax, a poor score is up to 579, a fair score is 580-669, a good score is between 670-739 and a very good score is between 740 and 799.

What information do lenders ask for when I apply for credit?

When you apply for credit, lenders will ask for a range of different things. They will use this information to assess the risk of approving credit to you. They may look at the following:

• Your credit report

• Information from public records from the last six years, including whether you have county court judgments (CCJs), any Individual Voluntary Arrangements (IVAs), or bankruptcies.

• Any credit you currently have outstanding

• Your income

• Any person you’re financially linked to

• Any missed or late payments you’ve had in the past

Will I be eligible for a credit card or a personal loan with a 500 credit score?

You could get a credit card or loan with a 500 credit score but it will be harder for you than someone with a higher credit score.

As 500 is a low credit score, it may be more difficult to be accepted for credit. Because of your lower credit score, you should also expect higher interest rates, a smaller credit limit and loan amount.

There are specialist lenders who lend to people with bad credit, so for example, you can get loans and credit cards aimed at people with poor credit – just remember you won’t be offered the most competitive rates.

Your credit score isn’t the only thing lenders look at either. They will also look at your income to assess how you will be able to afford any credit repayments.

Why do I have a 500 credit score?

Here are some of the reasons why you might have a low credit score:

• No or short credit history: If you’re new to borrowing money you won't have much of a credit history and this could be why you have a low credit score.

• History of missed payments: If you’ve repeatedly missed payments in the past, then that signals to lenders you’re not a reliable borrower and this will hurt your credit rating.

• Use too much of your available credit: Your credit limit is the maximum amount you can borrow on your credit card. It’s ideal to keep your credit utilisation under 30%, as using 50% and over is considered high and can lower your credit rating. So, for example, if your credit limit is £1,000, you should aim not to spend over £300 because that’s 30% of your credit limit.

• Too many credit applications: It’s best to space out your credit applications because every time you apply for new credit it leaves a mark on your credit file. Making too many credit applications in a short time suggests that you’re too dependent on credit and may have issues with your finances.

• Financial problems: If you’ve been declared bankrupt or have a County Court Judgment (CCJ), this can leave a mark on your credit report and not only hurt your credit score but make it very hard to access credit in the future. Bankruptcy and a CCJ will usually come off your credit report after six years, but you should try to resolve your debts before then to lessen the damage to your credit score.

• Withdrawing cash on a credit card: If you have taken cash out on a credit card, this can impact your credit score negatively because it indicates that you are struggling financially.

How can I improve my 500 credit score?

There are lots of things youo can do to improve your credit score:

• Register on the electoral roll: Being registered on the electoral roll verifies your address to the lenders and can help step up your credit score.

• Make payments on time: Making timely payments shows lenders that you’re a trustworthy borrower. Setting up a direct debit is a handy way to avoid late or missed payments.

• Keep credit utilisation low: It’s advised to keep your credit limit below 30%. By not using all your credit available, you’re showing lenders you’re not too reliant on credit – which hopefully makes it easier for you to keep up with your credit card bills.

• Don't always close unused credit accounts: By keeping an account open, you'll benefit from longer average credit history. It's a good idea to put a small purchase on a largely unused account and pay it off immediately.

• Check for any errors: Mistakes on your credit report could be hurting your credit rating. Look through your credit report for any inaccuracies.

• Look at your credit report: Get into the habit or regularly checking your credit report. It shows you what your current score is but also has details about all of your credit accounts.

How long will it take for my 500 credit score to improve?

A good credit score won’t happen immediately but if you start putting in place steps to boost your score, it will happen in time. Fixing your credit score might take a while but the benefits will be worth it. A better credit score could take anything from six months to a few years. You get a good credit score when you’ve built up a history of always making payments and practising good financial habits.

Can I get a mortgage with a 500 credit score?

You can get a mortgage with lowbad credit – however, your options will be more limited in comparison to someone with a good credit rating. If you apply for a mortgage while your credit score is low, you’ll likely have to put down a larger deposit and pay higher interest rates. You also probably won’t be accepted by high mainstream lenders as you’ll be seen as a higher risk to lend to. Nevertheless, there are specialist mortgage lenders for people with bad credit.

Nurture your credit score with our Credit Score service

The good thing about bad credit scores is that they can become better credit scores. You can check your credit score and report whenever you want with our free Credit Score service. Credit Score will also send you hints and tips on how to improve your credit score.