517 Credit Score: Good or Bad, Loan Options & Tips (2024)

A 517 credit score is classified as "bad" on the standard 300-to-850 scale. It is 183 points away from being a “good” credit score, which many people use as a benchmark, and 123 points from being “fair.” A 517 credit score won’t knock any lenders’ socks off, but it shouldn’t completely prevent you from being approved for a credit card or loan, either. For example, roughly 1 in 10 new credit card accounts are opened by someone with a credit score below 580, according to Equifax data.

Key Things to Know About a 517 Credit Score

  • Credit Rating: 517 is considered a bad credit score.
  • Borrowing Options: Most borrowing options are available, but the terms are unlikely to be attractive. For example, you could borrow a small amount with certain unsecured credit cards or a personal loan with no credit check, but the interest rate is likely to be high.
  • Best Way to Improve a 517 Credit Score: Apply for a secured credit card and pay the bill on time every month.

Below, you can learn more about what a 517 credit score can get you and, even more importantly, how you can get a higher credit score. To that end, you can also check out your personalized credit analysis to see where you need to improve and exactly how to do it.

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What Does a 517 Credit Score Get You?

Type of CreditDo You Qualify?
Secured Credit CardYES
Home LoanYES (FHA Loan)
Unsecured Credit CardMAYBE
Auto LoanNO
Personal LoanNO

Note: It may be possible to qualify for an unsecured credit card, personal loan or auto loan in some cases, but the terms are unlikely to be attractive. If you apply for the average offer, you’re more likely to be rejected than approved.

Opinions are our own. This content is not provided, commissioned or endorsed by any issuer.

Credit Cards with a 517 Credit Score

The best type of credit card for a 517 credit score is a secured credit card. Secured cards give people with bad credit high approval odds and have low fees because cardholders are required to place a refundable security deposit. The amount you put down usually becomes your credit limit.

Popular Credit Cards for a 517 Credit Score

  • 517 Credit Score: Good or Bad, Loan Options & Tips (1)Best Overall:Discover it® Secured Credit CardDiscover it® Secured Credit CardLearn MoreLearn Moreon issuer's website
  • 517 Credit Score: Good or Bad, Loan Options & Tips (2)No Credit Check:OpenSky® Secured Visa® Credit CardOpenSky® Secured Visa® Credit CardLearn MoreLearn Moreon issuer's website
  • 517 Credit Score: Good or Bad, Loan Options & Tips (3)Unsecured:Credit One Bank® Platinum Visa® for Rebuilding CreditCredit One Bank® Platinum Visa® for Rebuilding CreditLearn MoreLearn Moreon issuer's website
  • 517 Credit Score: Good or Bad, Loan Options & Tips (4)Rewards & No Annual Fee:Capital One Quicksilver Secured Cash Rewards Credit CardCapital One Quicksilver Secured Cash Rewards Credit CardLearn MoreLearn Moreon issuer's website

Even if you don’t use it to make purchases, a credit card can help improve your score by adding positive info to credit report on a monthly basis. A secured card won’t give you an emergency loan, though. For that, you’ll need an unsecured credit card for bad credit. Such cards aren’t ideal, as they charge high rates and fees while allowing you to borrow very little. But they might be your only option.

Car Loans with a 517 Credit Score

People with credit scores below 540 receive less than 7% of all auto loans. As a result, your odds of getting approved for a decent car loan are slim. You will need to compare your options carefully and consider either placing a bigger down payment or purchasing a vehicle that’s less expensive.

Mortgages with a 517 Credit Score

Around 3% to 6% of first mortgages go to borrowers with credit scores below 620, depending on the year. Working to improve your credit score before you apply will make it much easier to get approved and will save you a lot of money. For example, a credit score of 580 or higher qualifies you for a lower down payment (3.5% vs. 10%) on an FHA home loan.

Student Loans with a 517 Credit Score

Student loans are some of the easiest loans to get with a 517 credit score, seeing as nearly 25% of them are given to applicants with a credit score below 540. A new degree may also make it easier to repay the loan if it leads to more income.

Note: Borrower percentages above reflect Q3 2017 Equifax data.

How to Improve a 517 Credit Score

  1. Catch Up on Past-Due Payments

    If you have not yet defaulted on a delinquent account, making up the payments you’ve missed is your best option. Having your account default will cause your credit score to fall further, possibly leading to collections and even a lawsuit, both of which could add to the credit damage. Each missed payment you make up will reduce your delinquency level, so you don’t have to pay the total amount due all at once. You can also explore debt management and debt settlement.

    The impact of a serious delinquency is obvious from the manner in which credit scores rebound when it’s gone. Roughly 11% of people who fall 90 days behind on a loan or line of credit see their credit scores rise by at least 50 points when that record comes off their credit reports, according to FICO research. And nearly half see an increase of up to 29 points.

    If you have defaulted, your next steps in terms of any amounts owed will depend on whether your account is taken to collections and what your state’s statute of limitations is. As far as your credit goes, a steady dose of on-time credit card payments is the best recipe.

  2. Review Your Credit Reports for Errors

    Your “bad” rating may be the result, at least in part, of erroneous information on your credit reports. So check your latest credit report for things like accounts you didn’t open and on-time payments mistakenly listed as late. And dispute any inaccurate records you find.

  3. Be Patient After Foreclosure/Repossession

    Having a home foreclosed or other property repossessed to cover unpaid balances on underlying loans can take your credit score from excellent to bad. For example, someone with a credit score of 780 could expect to see his or her score fall to 620-640, according to FICO. And an individual with a 720 credit score would likely see that score fall to 570-590.

    Repossession and foreclosure are unlikely to be the lone negative marks on your credit report, considering they come after numerous missed payments and may be accompanied by collections accounts. And all of that negative information won’t fall off your credit report for seven years. So there’s no quick fix.

    Rather, you need to slowly rebuild your credit reputation by establishing a pattern of on-time payments on any loans or lines of credit you have open. You should at least have one credit card account, for the chance to add positive information to your credit reports every month.

  1. Open a Secured Credit Card Account

    Secured cards offer the highest approval odds of any credit card because you have to place a refundable security deposit, the amount of which becomes your spending limit. And they report account information to the major credit bureaus on a monthly basis, just like any other credit card.

    So each month your card’s issuer reports your account as being in good standing, a bit of positive information will be added to your credit reports to help cover up previous mistakes. There are two ways to ensure the information will be positive: pay the bill on time every month and don’t use the card at all. If there are no purchases to pay for, you’ll automatically receive credit for paying on time.
    If your 517 credit score is the result of bankruptcy and the proceedings are ongoing, you may need to clear your new secured card with the court. Bankruptcy is the worst thing that can happen to your credit score, reducing even scores in the high 700s to the mid-500s, according to FICO. And it generally takes scores 7-10 years to fully recover. Unfortunately, there’s no way to lessen the impact. But you can speed up the process by placing a deposit on a secured credit card and locking it in a drawer, or making purchases and paying the bill on time every month.

  1. Get Personalized Advice From WalletHub

    The best approach to improving a 517 credit score is to check the Credit Analysis page of your free WalletHub account. This will tell you exactly what problem areas to focus on and how to correct them.


Top 10 Resources for a 517 Credit Score

  1. Bad Credit Guide
  2. Why Did My Credit Score Drop? Top 10 Causes
  3. Free Credit Score Simulator
  4. How To Improve Your Credit Utilization

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517 Credit Score: Good or Bad, Loan Options & Tips (2024)

FAQs

517 Credit Score: Good or Bad, Loan Options & Tips? ›

A 517 credit score can be a sign of past credit difficulties or a lack of credit history. Whether you're looking for a personal loan, a mortgage or a credit card, credit scores in this range can make it challenging to get approved for unsecured credit, which doesn't require collateral or a security deposit.

What loan can I get with a 517 credit score? ›

It is possible to qualify for an FHA loan with a credit score as low as 500, although you won't get the standard 3.5% down payment these loans are known for.

How bad is a 517 credit score? ›

Your score falls within the range of scores, from 300 to 579, considered Very Poor. A 517 FICO® Score is significantly below the average credit score. Many lenders choose not to do business with borrowers whose scores fall in the Very Poor range, on grounds they have unfavorable credit.

How to improve a 517 credit score quickly? ›

  1. Make On-Time Payments. ...
  2. Pay Down Revolving Account Balances. ...
  3. Don't Close Your Oldest Account. ...
  4. Diversify the Types of Credit You Have. ...
  5. Limit New Credit Applications. ...
  6. Dispute Inaccurate Information on Your Credit Report. ...
  7. Become an Authorized User.

Can I get a car loan with a 517 credit score? ›

With a bad credit score, you'll likely be offered some of the highest advertised rates. According to data from Experian, borrowers in the subprime category (a FICO score between 501 and 600) can expect an average rate of 12.85 percent for new cars and 18.97 percent for used cars.

What credit score do I need for a $3,000 loan? ›

While some personal loan lenders allow you to apply with a very low credit score, many require a minimum credit score of 660 or 700 to be considered for a $3,000 personal loan. Generally, the higher your credit score, the less interest you will pay.

What credit score do I need for a $50,000 loan? ›

You'll have the best chance of getting approved with an excellent credit score, such as one above 800. You may struggle to find a lender that will approve a $50,000 loan for folks with poor or bad credit. A "poor" credit score is considered 580 or under. Most lenders require at least a "fair" score of around 670.

How can I raise my credit score 100 points overnight? ›

10 Ways to Boost Your Credit Score
  1. Review Your Credit Report. ...
  2. Pay Your Bills on Time. ...
  3. Ask for Late Payment Forgiveness. ...
  4. Keep Credit Card Balances Low. ...
  5. Keep Old Credit Cards Active. ...
  6. Become an Authorized User. ...
  7. Consider a Credit Builder Loan. ...
  8. Take Out a Secured Credit Card.

How do I raise my credit score to 20 points? ›

  1. Pay credit card balances strategically.
  2. Ask for higher credit limits.
  3. Become an authorized user.
  4. Pay bills on time.
  5. Dispute credit report errors.
  6. Deal with collections accounts.
  7. Use a secured credit card.
  8. Get credit for rent and utility payments.
Mar 26, 2024

How can I raise my credit score by 50 points fast? ›

4 tips to boost your credit score fast
  1. Pay down your revolving credit balances. If you have the funds to pay more than your minimum payment each month, you should do so. ...
  2. Increase your credit limit. ...
  3. Check your credit report for errors. ...
  4. Ask to have negative entries that are paid off removed from your credit report.

What is the easiest car company to get financing? ›

The best car loans for bad credit
  • Best for shopping around: myAutoloan.
  • Best for buying a car online: Carvana.
  • Best from a big bank: Capital One Auto Finance.
  • Best for used vehicle selection: CarMax Auto Finance.
  • Best for refinancing: Autopay.

What credit score do I need to buy a $40000 car? ›

There isn't one specific score that's required to buy a car because lenders have different standards. However, the vast majority of borrowers have scores of 661 or higher.

What credit card can I get with 517? ›

Popular Credit Cards for a 517 Credit Score
  • Best Overall: Discover it® Secured Credit Card.
  • No Credit Check: OpenSky® Secured Visa® Credit Card.
  • Unsecured: Credit One Bank® Platinum Visa® for Rebuilding Credit.
  • Rates & FeesRewards & No Annual Fee: Capital One Quicksilver Secured Cash Rewards Credit Card.

How much can I borrow with a 500 credit score? ›

Lenders offer various loan amounts, but personal loans for bad credit generally range from $1,000 to $50,000. But compare potential offers—the exact amount you qualify for will vary depending on your income and how much existing debt you have.

Can I get a 10k loan with a 500 credit score? ›

Your credit score can make or break your ability to get a $10,000 loan. Generally, it can be hard to meet personal loan requirements if your credit score is below 640. That doesn't mean that it's impossible, but you may need to stick to bad credit loans (which typically have higher APRs).

What is the minimum credit score for a personal loan? ›

To qualify for a personal loan, borrowers generally need a minimum credit score of at least 580 — though certain lenders have even lower requirements than that. However, your chances of getting a low interest personal loan rate are much higher if you have a “very good” or “excellent” credit score of 740 and above.

Can I get an FHA loan with a 500 credit score? ›

Technically, you can get approved for an FHA loan with a median FICO® Score of as low as 500, but an FHA loan with a score that low has some serious drawbacks. The first drawback is that you'll need a down payment of at least 10%. Secondly, when qualifying with a score that low, it's considered a subprime loan.

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