What a 520 credit score gets you
Mortgage
Limited
An FHA loan is possible with at least 10% down, the HUD rule for scores from 500 to 579. Conventional lending is technically open through Fannie Mae's automated underwriting, which has had no minimum score since November 2025, but a lender is free to set its own floor above yours.
Car loan
Limited
Car financing may be available, subject to lender requirements. If your VantageScore 4.0 is in the 501-600 tier, Experian’s Q2 2026 averages were 13.52% new and 19.1% used. A FICO 520 does not establish that VantageScore; compare actual APR, amount and term.
Credit cards
Limited
A secured card is the practical choice, because the deposit takes most of the risk off the issuer. Pick one that reports to all three bureaus, so it can build history in each file; reporting to one bureau can still affect that bureau’s scores.
Renting
Limited
Landlords who screen see the collections and late payments behind a 520 as well as the number. The CFPB found that tenant screening data is often out of date or wrong, so if you are turned down, ask which report was used and check it.
These are broad credit-score categories, not approval odds. Lenders also assess income, debt, credit history and their own requirements.
What 520 costs you in interest
There is no published FICO-band price for a mortgage or a car loan at 520: myFICO's tables start at 620 and 640. Experian's averages by VantageScore tier fill the gap for cars, and they put 520 on the second step from the bottom.
If your VantageScore 4.0 is 520
Subprime · 501–600. A FICO 520 does not establish this VantageScore.
$460.40/mo · $7,624 total interest
$519.91/mo · $11,195 total interest
Illustration: $20,000 financed over 60 months at the quarterly average APR. Experian averages cover different loan terms; these are payment scenarios, not quotes for a 60-month loan. Compare your amount and another VantageScore →
$35,000 new car, 60 months, by VantageScore tier
| Score band | Rate | Monthly | Total interest | vs. best |
|---|---|---|---|---|
| 781–850 | 4.41% | $651 | $4,064 | – |
| 661–780 | 6.15% | $679 | $5,746 | +$1,681 |
| 601–660 | 9.71% | $739 | $9,320 | +$5,255 |
| 501–600 | 13.52% | $806 | $13,342 | +$9,278 |
| 300–500 | 16.11% | $853 | $16,191 | +$12,126 |
Two cautions when reading it. These are averages across all lenders, and the tiers are VantageScore 4.0 ranges, while a car lender may price on a FICO Auto Score. Use the chart to see how the price falls as you move right, not to predict your own quote.
For a home, FHA is the realistic route at 520, and the rule is simple: between 500 and 579, HUD finances at most 90% of the value, so the down payment is at least 10%. A buyer who already has that cash does not need to wait for 580. One who does not is usually better served by the climb than by trying to save the larger amount.
What changes in your down payment?
Compare the FHA minimum at 520 with 580 using the same home price.
10% minimum down payment
3.5% minimum down payment
Cash requirement changes. This is not an interest saving.
Putting less down means borrowing more for the same home. Compare the monthly payment and cash reserve as well as the upfront requirement. Closing costs, mortgage insurance and lender requirements are additional. These examples assume the price equals the FHA adjusted value; a lower appraisal can change the cash needed.
Source: HUD FHA credit-score and LTV rules →What would a different score cost?
Same loan. Two scores. See the difference.
VantageScore 4.0 scenarios · Experian Q2 2026. A FICO 520 does not establish a VantageScore of 520.
At 601 compared with 520
| Score | Reference rate | Monthly payment | Total interest |
|---|---|---|---|
| 520 | 13.52% | $460.40 | $7,624.18 |
| 601 | 9.71% | $422.09 | $5,325.56 |
At 601, the estimate is $38.31 less per month and $2,298.62 less interest over the full term.
Car APR averages by VantageScore 4.0 tier, Experian Q2 2026. Both scores use the same quarterly dataset. Terms and amounts are illustrative; the averages are not specific to a 60-month loan. Methodology.
What this estimate includes
Estimates use national average bands, not an offer or approval prediction. Your lender may use a different score. Mortgage payments exclude taxes, insurance, mortgage insurance and fees. Full-term interest assumes no refinancing, early payoff or extra payments.
How to get from 520 to 580
Start by finding out which 520 you have. Then work on what the reports say, in this order.
- Check the model. FICO 8, FICO 9 and VantageScore read the same file differently, and FICO 8 is still the version most lenders use. Mortgage lenders pull all three bureaus, so the score that decides an FHA loan may not be the one on your phone.
- Read all three reports and dispute errors. They are free at AnnualCreditReport.com, and the bureaus must investigate a dispute.
- Handle collections with the version in mind. FICO 9 ignores paid third-party collections; older versions are not described that way. Paying is still worth it, because a lender or landlord reads the report, not only the score.
- Pay every bill on time from here. Payment history is 35% of a FICO score, the biggest single factor.
- Bring card balances down. Amounts owed are another 30%, and unlike old late payments they respond as soon as the new balances are reported.
The common mistake at 520 is chasing the number on a free app while the lender's three-bureau report tells a different story. Fix the reports and every version of the score follows.
What a Poor score means (300 to 579)
Credit is still possible, but on the lender's terms: deposits, co-signers and high rates. 14.7% of Americans with a FICO score are in this range, according to Experian's 2025 data. What the poor range means in practice.
Questions about a 520 score
Why is my credit score different on different apps?
You do not have just one credit score. FICO 8, FICO 9, VantageScore and industry versions such as FICO Auto Scores weigh the same information differently, and each bureau's file can differ slightly, so a 520 on one app can be a different number elsewhere.
Sources (11)
- HUD Handbook 4000.1 (FHA minimum credit scores) and Mortgagee Letter 2026-11, October 8, 2026
- Fannie Mae Selling Guide Announcement SEL-2025-09 (minimum score removed for DU loans), November 5, 2025
- Experian: State of the Automotive Finance Market, Q2 2026, August 2026
- myFICO: FICO Score versions (base and industry-specific score ranges)
- myFICO: What is a FICO Score? (score ranges and what goes into them)
- CFPB: Tenant background checks market report, November 2022
- CFPB: What is a credit score?
- AnnualCreditReport.com (free reports from all three bureaus)
- CFPB: How do I dispute an error on my credit report?
- Experian: What is the average credit score in the U.S.? (share of consumers in each FICO range), 2025 data, published March 2026
- FTC: Credit scores
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