By CreditNinja
Modified on March 7, 2024

A 460 credit score is lower than the average credit score and is considered “poor.” 

A poor credit score demonstrates that you may have issues managing your finances and are not always a reliable borrower.

Having a poor credit score can directly affect your borrowing options and result in unattractive loan terms. However, borrowers can still qualify for loans with decent rates by searching for alternative lenders that have flexible credit score requirements. 

Key Takeaways for a 460 Credit Score

Overview of Your
Credit Rating

A 460 credit score is "poor" or "bad." Most lenders are wary of working with bad credit borrowers. Bad credit is typically due to a history of late payments and carrying too much credit card debt.

Borrowing Options With a 460 Credit Score

While subprime lending options are available, such as no credit check loans, they typically have predatory rates and hidden fees. If you need emergency funding, inquire with online lenders to find the best loan offer.

Improving a 460 Credit/FICO Score

You can improve a very poor credit score by using credit-building tools, such as secured credit cards and credit builder loans. It's also helpful to avoid late payments and reduce your overall credit card debt.

Is a 460 Credit Score Good?

A 460 credit score is labeled as a bad score by most credit scoring models. A good credit score is generally higher than 670 points. According to Experian, 9% of their customers have a FICO score below 550. If you want to obtain a good credit score, you will have to raise your score by at least 210 points. You can use several financial methods to improve credit scores, but they will require patience and dedication.

What Can You Get Approved for With a 460 Credit Score?

Consumers with a 460 credit score can still be eligible for quick funding. Still, rates and terms vary depending on the individual’s income, employment status, the type of loan, and the lender.

Personal Loans

Personal loans are installment loans that borrowers can use for various unexpected expenses. Loans can provide as much as $100,000 and come with 12 to 60-month repayment terms.² Most lenders offer unsecured loans, but some specialize in secured funding. 

While you may experience an easier approval process with secured personal loans, remember that you will have to secure funding with a valuable asset, such as a car or house. If you experience financial issues and cannot repay the personal loan, the lender can repossess your asset. 

It’s possible for someone to qualify for a personal loan with poor credit because every lender has different requirements. You may find an online lender with a low minimum credit score requirement willing to work with you. But before you sign a personal loan agreement, use a financial calculator to determine how much you will pay to borrow money. You may end up deciding on a shorter repayment plan or a lower personal loan amount to save on interest fees. 

Bank Loans

Banks offer installment loans for all types of credit scores. While you may be eligible for a bank loan with a below-average credit score, be prepared for high rates. Banks are typically less flexible than online lenders, so you may get unattractive loan terms if your credit history is poor. If you want to secure lower rates on a bank loan, you may have to provide collateral.  

Credit Cards

If you’re looking into credit card accounts, remember that you may not get a high credit limit if you have poor credit. Credit cards also generally have higher interest rates than installment loans, so you can end up with an astronomical rate. 

Consider applying for a closed-loop store card instead of a traditional credit card if your FICO Score is significantly below the average credit score. A closed-loop store card can only be used at a specific retail store or chain, but it’s typically easier to get than an open-loop card. Store cards can offer plenty of benefits, such as discounts, rewards, and no annual fees.

These are some of the best store cards for borrowers with poor credit history:

  • Amazon® Store Card
  • Kohl’s® Credit Card
  • Walmart® Store Card
  • Target® Credit Card
  • Old Navy® Credit Card
  • Macy’s® Credit Card

Auto Loans

If you’re looking to buy a new or used car, know that it’s possible to qualify for an auto loan with poor credit history. But while you may be eligible, you may not get approved for a large loan amount unless you provide a sizable down payment. Interest rates on auto loans can be pricey for lower credit scores—especially for used cars—so consider opting for a shorter repayment plan to save on interest fees. 

Products To Help Improve a 460 Credit Score 

These are some products that can help borrowers improve poor credit scores:

Secured Credit Cards

A secured credit card can help boost your credit score if you responsibly manage your credit account. Secured credit cards work like traditional credit cards; the only difference is that you must provide a refundable lump sum that acts as your credit limit. You can use your secured credit card online or in-person to make purchases, but you will be charged interest if you don’t pay your outstanding balance every month. 

Creditors will likely report financial activity to the three national credit bureaus that update credit reports. If you make timely payments and keep your credit utilization low, you can build a good credit history over time. 

Credit Builder Loans

A credit builder loan is a financial product that helps borrowers save money and build better credit. When you apply for a credit builder loan, you must decide on a loan amount. But unlike a traditional installment loan, you do not receive any money upfront. Instead, the lender will deposit the “loan amount” into a secure savings account. 

Borrowers make monthly installments toward the “loan amount” that are reported to at least one of the major credit bureaus. By maintaining a good payment history, borrowers can build good credit over time. Once the borrower successfully finishes the repayment process, the lender will grant the borrower access to their money. 

Automatic Payments

If you struggle to stay on top of your monthly bills, consider signing up for automatic payments. Most financial institutions offer an autopay feature. Autopay allows the business to automatically charge your credit or debit card on file every month so you don’t miss a payment. You may even be able to schedule specific amounts if you want to pay more than the minimum due every month.  

Benefits of Improving Your 460 Credit Score

By improving your credit score, you can get exclusive benefits from lenders. Take a look at some perks you can receive if you have an excellent credit history: 

Lower Interest Rates

By improving your credit scores, you can qualify for lower interest rates on loans, credit cards, and insurance plans! A lower annual percentage rate (APR) will reduce not only the monthly payment amount but the total interest you pay to borrow money. Lower rates can help you keep more money in your bank account and spend less than someone with a lower credit score. 

Take a look at how interest savings vary depending on your credit rating:

Credit Score Range

Estimated APR for Personal Loans*

Estimated APR for Mortgages*

Potential Interest Savings on a $20,000 Loan over 5 Years*

Excellent (720-850)



$0 (baseline)

Good (690-719)




Fair (630-689)




Poor (300-629)




*The APRs are hypothetical and for illustrative purposes only. Potential interest savings are estimated based on the difference in total interest paid over the life of a $20,000 personal loan with a 5-year term, compared to the interest paid with an excellent credit score.

Easier Approval 

Higher credit scores can greatly increase your lending options. If you have good credit, you may easily qualify for unsecured loans when you need emergency financial relief. Bad credit borrowers generally have to spend time finding a lender willing to work with them, but a good credit score can greatly increase your chances of getting approved. 

Better Credit Card Rewards 

An excellent credit history can help you qualify for the best rewards credit cards. A rewards card allows cardholders to earn points, cash back, or travel miles from qualifying purchases or from qualifying categories, such as restaurants or gas stations. Rewards cards allow borrowers to save a lot of money, which traditional credit cards don’t. 

How To Improve Your 460 Credit Score

Borrowers can improve poor credit scores with the following financial strategies:

Avoid Late Payments

A long history of timely payments can greatly boost your credit score. Payment history is the most important financial factor that affects credit because it makes up 35% of a FICO Score. If you miss a payment, the lender will issue a late charge. However, your missed payment will not appear on your credit report as long as it is not more than 30 days late. To help you keep track of your bills, consider signing up for autopay or payment alerts. 

Reduce Your Outstanding Debt

Many borrowers think that as long as they make credit card payments on time, their credit will not be affected. But did you know that carrying too much credit card debt can decrease your credit score? Your credit usage makes up 30% of your total credit score. Financial experts advise borrowers to maintain a credit utilization ratio lower than 30% to avoid negatively affecting their credit. 

A credit utilization ratio is the difference between how much credit you are using compared to your total credit limit expressed as a percentage. If you want to improve a poor credit score, it’s important to know how to calculate your credit utilization. 

  • Step 1: Calculate your total outstanding credit card balances and your total credit limits. 
  • Step 2: Divide the total balance by the total credit limit.
  • Step 3: Multiply the answer from Step 2 by 100.
  • Step 4: Get your credit utilization as a percentage amount.


If your credit utilization is too high, it’s time to start working on reducing your debt. If you’re struggling with too much debt, consider using a debt consolidation loan or the debt avalanche strategy. 

Limit New Credit Inquiries

When you apply for a new loan or credit card, the lender conducts a hard credit check to view your credit report. A hard inquiry can automatically deduct a few points from your credit score. If you already have poor credit, a few points can make improving your credit even more challenging. Only apply for funding when you really need it, and avoid submitting too many credit applications within a short period.  

Monitor Your Credit Reports  

Monitoring your credit reports can help you spot inaccuracies and fraudulent activity. The Annual Credit Report website allows consumers to download a free credit bureau from TransUnion, Equifax, and Experian annually. If you spot an error, you can file a dispute with the corresponding credit bureau. If you suspect fraud, you can place an initial fraud alert on your credit report and freeze it. 

FAQs About 460 Credit Scores

Diversifying your credit mix can help improve your credit score. This involves having a variety of credit types, such as credit cards, personal loans, and auto loans. Lenders like to see that you can manage different types of credit responsibly.

Yes, there are bad credit loans designed for borrowers with lower credit scores. These loans often come from online lenders who are more flexible with credit requirements. While the interest rates might be higher, they offer an opportunity for borrowers to access funds. It’s important to carefully review the terms and consider if the fixed monthly payments are manageable within your budget.

Secured loans can be advantageous for those with a 460 credit score because they typically have lower interest rates than unsecured loans for bad credit borrowers. This is because the loan is backed by collateral, reducing the risk for the lender. However, it’s crucial to make timely payments, as failure to do so could result in losing the asset used as collateral.

What Interest Rate Can I Get With a 460 Credit Score?

If your credit score is 460, then lenders consider you a subprime borrower. Subprime borrowers generally get higher interest rates compared to borrowers with good or excellent credit. If you want to save money on interest fees, consider opting for small loans with short repayment plans. If you use credit cards, avoid carrying a monthly balance by only buying what you can afford. 

Can I Buy a House With a 460 Credit Score?

While it’s possible to buy a house with a bad credit score, it’s not going to be affordable. Rates on mortgages can be quite high if you don’t have good credit. High rates can significantly raise your monthly payment amount, which can make the repayment process difficult and result in financial hardship. If you want to buy a home, it’s better to work on improving your credit score first before applying for a home loan.

Top 5 Resources for a 460 Credit Score

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