Kudos has partnered with CardRatings and Red Ventures for our coverage of credit card products. Kudos, CardRatings, and Red Ventures may receive a commission from card issuers. Kudos may receive commission from card issuers. Some of the card offers that appear on Kudos are from advertisers and may impact how and where card products appear on the site. Kudos tries to include as many card companies and offers as we are aware of, including offers from issuers that don't pay us, but we may not cover all card companies or all available card offers. You don't have to use our links, but we're grateful when you do!
527 Credit score: What You Need to Know in 2025
July 1, 2025
TL;DR
A 527 credit score offers a significant opportunity for improvement and is a solid starting point for building a stronger financial future. This score falls into the 'Poor' range, which simply means there are clear, actionable steps you can take to boost your number.
What Does a 527 Credit Score Mean?
A 527 credit score falls into the "poor" range on the FICO scale, which runs from 300 to 850. Lenders generally view this score as an indicator of high risk, creating significant hurdles when you apply for new credit. You may struggle to get approved for loans or credit cards, and any approvals will likely come with unfavorable terms like higher interest rates, making borrowing more expensive.
While a 527 score presents challenges, it's not a permanent state. It provides a clear baseline of your current credit health and is the first step toward building a stronger financial future. Over time, it's entirely possible to improve your standing and gain access to more favorable financial products and opportunities.
Who Has a 527 Credit Score?
While age isn't a direct factor in calculating your credit score, there's a clear trend of scores improving over time. According to 2023 Experian data, here is the average FICO score breakdown by generation:
- 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 and older): 760
Credit Cards With a 527 Credit Score
A credit score of 527 falls into the "poor" range, which can significantly limit your options when applying for a new credit card. Most lenders view this score as an indicator of high risk, meaning you'll likely face rejections for standard unsecured cards. Your best bet will probably be cards specifically designed for building credit, such as secured cards, which often require a security deposit but offer a pathway to better financial health.
Kudos offers AI-powered tools like the Explore Tool and Dream Wallet, which provide personalized credit card recommendations based on your preferences and actual spending habits. These tools help you understand how a new card might impact your credit score and whether its annual fees are justified for your financial situation, empowering you to make an informed choice.
Auto Loans and a 527 Credit Score
A 527 credit score places you in the subprime category, which lenders consider a higher risk. As a result, you will likely face significantly higher interest rates, making your auto loan much more expensive over its lifetime.
According to Experian's Q2 2025 report, here are the average auto loan rates broken down by credit score:
- Super-prime (781-850): 5.25% for new cars and 7.13% for used cars
- Prime (661-780): 6.87% for new cars and 9.36% for used cars
- Non-prime (601-660): 9.83% for new cars and 13.92% for used cars
- Subprime (501-600): 13.18% for new cars and 18.86% for used cars
- Deep subprime (300-500): 15.77% for new cars and 21.55% for used cars
Mortgages at a 527 Credit Score
With a 527 credit score, your mortgage options are limited. Your most viable path is likely an FHA loan, which requires a minimum down payment of 10% for applicants with scores below 580. Most other loan types, such as conventional, VA, or USDA loans, typically have higher credit score requirements, making them difficult to secure with a 527 score.
Furthermore, a 527 score will lead to less favorable loan terms. You can expect to face higher interest rates, increasing your monthly payment and the total interest paid over the life of the loan. For an FHA loan, you will also be subject to higher mortgage insurance premiums, adding another significant cost to your homeownership journey.
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's primarily based on a handful of key financial habits. The most common factors include:
- Your payment history tracks whether you have paid past credit accounts on time.
- Credit utilization is the percentage of your available credit that you are currently using.
- The length of your credit history considers the age of your oldest account and the average age of all your accounts.
- Having a healthy mix of credit types, such as credit cards and installment loans, can positively impact your score.
- Recent credit inquiries and newly opened accounts can temporarily lower your score.
How to Improve Your 527 Credit Score
No matter how low your credit score has dropped, it is always possible to improve it with time and consistent effort. According to an expert guide, there are several proven methods to boost your creditworthiness and build a healthier financial profile.
- Monitor your credit reports. Regularly checking your reports allows you to spot and dispute any inaccuracies that could be unfairly lowering your score. This also helps you track your progress as you work to rebuild your credit.
- Set up automatic bill payments. Your payment history is the single most important factor in your credit score, so ensuring every bill is paid on time is a critical first step. Automating payments prevents late fees and the negative marks that can devastate a low score.
- Lower your credit utilization ratio. Aim to use less than 30% of your available credit, as this is the second most influential factor in your score. Paying down balances or even paying multiple times a month can significantly improve this ratio and boost your 527 score.
- Become an authorized user. If you have a trusted friend or family member with a good credit history, being added to their account can help. Their positive payment history and low credit utilization will be added to your report, which can be a fast track to improving a damaged score.
To help you maximize rewards and make smarter spending decisions as you rebuild your credit, consider using the Kudos browser extension.
Supercharge Your Credit Cards
Experience smarter spending with Kudos and unlock more from your credit cards. Earn $20.00 when you sign up for Kudos with "GET20" and make an eligible Kudos Boost purchase.
Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
