What Can You Get Approved For With a 504 Credit Score?

With a 504 credit score, you can still get approved for a secured credit card, some auto loans, and small loans from credit unions. Unsecured cards and most personal loans are mostly out of reach for now. An FHA mortgage is possible with 10% down, though lenders can set higher minimums.

You're likely to pay more for anything you borrow, because your score sets your interest rate. The next milestone is 580, 76 points away. At 580, you'd reach fair credit, and the FHA down payment would drop to 3.5%.

Is 504 a poor credit score?

Yes. A score of 504 is within FICO's lowest range, in the upper half of it. Fair credit starts at 580.

A score this low usually means your credit report includes negative marks like:

• Missed payments. A payment 30 days late gets reported and stays on your report for seven years. Several late payments, or one that stretched to 90 days, do more damage than a single slip.
• Accounts in collections. This is a debt handed off to a collection agency, often a medical bill or an old card balance. A collection also stays for seven years, counted from the original delinquency.
• High card balances. Using a large share of your available credit lowers your score. Unlike a late payment, this changes as soon as your balances come down.

Lenders read that as a high risk you won't repay. So approvals are harder. When one comes through, the terms reflect the risk: higher rates, bigger deposits, larger down payments, and, in some states, higher insurance premiums.

Read more >> What Can You Get Approved For With a 560 Credit Score?

What can you get approved for with a 504 credit score?

Some financial products are within reach at 504, while others aren't. Knowing which can save you an application.

Credit cards

Most credit cards are unsecured, which means nothing of value backs them. Those cards are hard to get with a 504 score. Before applying, check whether the issuer offers prequalification. It uses a soft credit check, so it won't add a hard inquiry to your report.

A secured credit card is a more realistic option. You put down a refundable deposit that usually becomes your credit limit. A $500 deposit, for example, gets you a $500 limit. The issuer holds the deposit while the account is open and keeps it if you don't pay.

You generally get the deposit back when you close the account in good standing. You may also get it back when the issuer graduates you to an unsecured card after steady on-time payments.

Some subprime unsecured cards accept low scores, but expect a low limit, a high rate, and fees.

Personal loans

A personal loan from a bank or online lender is hard to get at 504. If you're approved, expect a small amount, a short term, and a high rate. For example, you might get $500 to repay over six months.

If you need a small loan, start with a credit union if you belong to one or can join. Federal credit unions can't charge more than 18% on most loans. Some also offer payday alternative loans (PALs) of up to $2,000 repaid over one to 12 months. Application fees are capped at $20, and rates can't go higher than 28%.

That's much cheaper than a payday loan, where a typical $15 fee per $100 borrowed works out to an APR of almost 400%.

Auto loans

An auto loan is one of the easier loans to get approved for with a 504 score.

That's because your car is the collateral: If you stop paying, the lender can take it back and sell it to cover the loan. That lowers the lender's risk, but it also means falling behind puts your car at risk.

A 504 score falls in Experian's subprime tier (501 to 600), near the bottom of it. Near prime starts at 601, 97 points away. Your credit score plays a major role in the interest rate you're offered on a car loan. On a $20,000, 60-month new car loan at average rates, a subprime borrower would pay about $5,300 more in interest than a super prime borrower, and about $4,300 more than a prime borrower. Dropping below 501 would put you in deep subprime, where the gap grows to about $6,900. Experian sorts these tiers by VantageScore 4.0, so your FICO score may place you a little differently.

If banks and credit unions turn you down, buy here, pay here dealers finance cars themselves. They often require weekly or biweekly payments and charge much higher rates than traditional loans.

Use an auto loan calculator to check payment amounts before you sign.

Mortgages

A mortgage is possible at 504, but it's a narrow path. FHA loans have the most flexible credit requirements. Borrowers with scores from 500 to 579 can qualify with at least 10% down, so 504 is just above the floor. Lenders can set their own minimums higher.

At 580, the minimum drops to 3.5% down. On a $250,000 home, that's $25,000 down at 504 versus $8,750 at 580.

A conventional mortgage is unlikely. Fannie Mae dropped its 620 minimum for loans run through its automated system in November 2025, but lenders still set their own minimums. USDA loans are for homes in eligible rural and suburban areas with income limits. They don't carry a program minimum score either, but lenders typically look for 620 to 640.

If you want to buy a home, work on both building your score past 580 and saving for a down payment. Our mortgage calculator can show what 10% down versus 3.5% down looks like in your price range.

What interest rates can you expect with a 504 credit score?

Expect rates near the top of whatever range a lender offers. The Federal Reserve's averages across all borrowers were 22.15% for card accounts charging interest and 11.86% for 24-month bank personal loans. With a 504 score, your offers are likely to be higher.

The rate applies to the whole balance, so even a few points add up. If you can wait to borrow, work toward 580, 76 points away. That moves you into fair credit in FICO's ranges and cuts the FHA down payment to 3.5%.

5 ways to raise a 504 credit score

1. Check your credit reports for errors. You can get all three for free every week at AnnualCreditReport.com. If something is wrong, like an account that isn't yours or a late payment you made on time, dispute it with the bureau. Disputing is free.
2. Bring past-due accounts current, if you can. For accounts already in collections, it can be hard to know which to pay first. The National Foundation for Credit Counseling (NFCC) can connect you to free or low-cost counseling at 800-388-2227.
3. Pay every current bill on time. Payment history is the biggest factor in your score, making up 35% of a FICO Score.
4. Keep card balances low. Using less of your available credit can raise your score as soon as your issuer reports the lower balance. That boost lasts only while the balances stay low.
5. Apply only when you need to. Each application can add a hard inquiry, which takes a few points off for about a year. Prequalify first where you can.

If your report is thin on positive accounts, adding one helps. A Kikoff Credit Account reports your payments to all three bureaus.

Progress is often slow at first. Late payments and collections lose weight as they age, and each month of on-time payments adds to your record.

Read more >> How to Build Credit

Bottom line

A 504 score still leaves you with options: secured cards, auto loans, and credit union loans. An FHA mortgage is also possible if you can put 10% down and find a lender that accepts your score. But your score also sets your price. The next goal is 580, 76 points away: It cuts the FHA down payment to 3.5% and moves you into fair credit in FICO's ranges.

Kikoff brings credit building, bill and rent reporting, AI-powered disputes, credit monitoring, and debt negotiation into one place. Sign up with no credit check. Plans start at $5 a month.