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508 Credit score: What You Need to Know in 2025
July 1, 2025
TL;DR
A 508 credit score is a starting point that provides a clear opportunity for building a stronger financial profile. This score falls into the "Poor" category on the FICO scale, which simply means there's significant potential for upward movement.
What Does a 508 Credit Score Mean?
A 508 credit score falls into the "poor" range on the FICO scale, which spans from 300 to 850. Lenders view this score as an indicator of high risk, making it difficult to qualify for new credit cards or loans. If you are approved, you'll likely face less favorable terms, such as higher interest rates, which significantly increases the long-term cost of borrowing.
While this score creates immediate financial challenges, it's not a permanent setback. Think of it as a baseline from which you can build. Your credit score reflects past financial habits, but it doesn't have to define your future. Consistent, positive financial actions can pave the way for significant improvement and open up better opportunities down the road.
Who Has a 508 Credit Score?
While age isn't a direct factor in calculating your credit score, there is a clear trend of scores increasing over a lifetime. This is often because older individuals have had more time to build a positive payment history and a longer credit history. According to an analysis of 2023 Experian data, the average FICO score breaks down by generation as follows:
- Generation Z (ages 18-26): 680
- Millennials (ages 27-42): 690
- Generation X (ages 43-58): 709
- Baby Boomers (ages 59-77): 745
- Silent Generation (ages 78+): 760
Credit Cards With a 508 Credit Score
A credit score of 508 falls into the "poor" credit range, which can significantly challenge your ability to get approved for a new credit card. Most lenders view this score as an indicator of high risk, meaning you'll likely face rejections for traditional, unsecured cards with favorable terms. Your options will probably be limited to products designed for building credit, such as secured credit cards or unsecured cards with high annual fees and interest rates.
Kudos offers AI-powered tools like the Explore Tool, which matches you with cards based on your stated preferences from a database of nearly 3,000 options. Their Dream Wallet tool further personalizes recommendations by analyzing your spending habits and providing insights into how a new card could impact your credit score.
Auto Loans and a 508 Credit Score
A credit score of 508 places you in the subprime borrower category, which can make securing an auto loan more challenging. According to a 2025 rate analysis, lenders view this score as higher risk, often resulting in significantly higher interest rates compared to borrowers with better credit.
- Super-prime (781-850): New Car: 5.25%, Used Car: 7.13%
- Prime (661-780): New Car: 6.87%, Used Car: 9.36%
- Non-prime (601-660): New Car: 9.83%, Used Car: 13.92%
- Subprime (501-600): New Car: 13.18%, Used Car: 18.86%
- Deep subprime (300-500): New Car: 15.77%, Used Car: 21.55%
Mortgages at a 508 Credit Score
While a 508 credit score is considered 'bad' and significantly limits your mortgage options, it doesn't completely disqualify you. Your primary path to homeownership will likely be an FHA loan. According to mortgage loan requirements, FHA loans accept scores as low as 500, but you must provide a down payment of at least 10%. Conventional, VA, and USDA loans are generally unavailable with this credit score.
Securing a loan with a 508 score means facing less favorable terms. Lenders will charge higher interest rates and fees to offset their risk. You can also expect a more rigorous approval process, known as manual underwriting, where lenders closely examine your income, debts, and cash reserves to ensure you can handle the payments.
What's in a Credit Score?
Figuring out what goes into your credit score can feel like trying to solve a complex puzzle, but it generally boils down to a handful of key elements. The most common factors include:
- Your payment history, which tracks whether you pay your bills on time, is the most significant factor.
- Credit utilization, or the amount of credit you're using compared to your total available credit, also plays a major role.
- The length of your credit history demonstrates your experience with managing credit over time.
- Having a healthy mix of different types of credit, such as credit cards and installment loans, can positively impact your score.
- Finally, recent credit inquiries, which occur when you apply for new credit, are also taken into account.
How to Improve Your 508 Credit Score
No matter your current credit situation, it is always possible to improve your score. With consistent effort and the right strategies, you can boost your creditworthiness and build a healthier financial profile.
- Monitor your credit reports. Regularly checking your reports helps you find and dispute inaccuracies or fraudulent activity that could be dragging down your 508 score. This also allows you to track your progress as you implement positive changes.
- Establish automatic bill payments. Your payment history is the most significant factor in your credit score, so setting up automatic payments is crucial for preventing late fees and further damage. This ensures you build a track record of on-time payments, which is essential for rebuilding credit.
- Reduce your credit utilization ratio. Keeping your credit card balances low compared to your limits—ideally below 30%—can provide a quick boost to your score. For someone with a 508 score, paying down existing debt is one of the most effective actions you can take.
- Apply for a secured credit card. A secured card requires a cash deposit, making it an accessible tool for someone with a poor credit history to establish a positive payment record. As you use the card responsibly, the activity is reported to the major credit bureaus, helping to rebuild your score over time.
To find the right credit-building cards and maximize any rewards you earn, the tools and unbiased evaluations from Kudos can help guide your decisions.
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