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A 520 credit score can be unsettling—but it’s more common than you might think. Many people discover this number while checking their report, unsure of what it means or what to do next. While the score signals below-average credit health, it doesn’t mean you’re out of options. This article explains what a 520 score represents, why it happens, who it affects, and what steps you can take to begin improving it.

What Does a 520 Credit Score Mean?

Credit scores usually range from 300 to 850. A score of 520 sits in the “poor” category on most scales, like FICO or VantageScore. This suggests there have been issues in your credit history, such as missed payments, too many recent credit applications, or accounts sent to collections.

Credit reporting agencies calculate your score based on factors like payment history, credit utilization, length of credit history, and the types of credit accounts you have. A 520 score means there is room for improvement in these areas. Knowing this allows you to work on the weak spots in your credit profile.

How Do Lenders See a 520 Credit Score?

Lenders use credit scores to decide how risky it is to approve someone for credit or a loan. A 520 score signals higher credit risk. Put simply, lending to you carries more risk. This does not mean every door is closed, but it does mean you may face more conditions before approval.

 

Many lenders might ask for higher down payments or offer loans with higher fees. Some may suggest secured products like credit cards that require a cash deposit. Lenders make these offers to protect themselves, knowing there is a higher chance of late payments or defaults based on your score.

What Does a 520 Credit Score Mean for You as a Borrower?

Having a 520 credit score does not make borrowing impossible. While a 520 credit score may limit some borrowing options or result in higher costs, it also opens the door to specialized lenders who focus on credit recovery. These providers offer tools like secured credit cards, credit-builder loans, and manageable lending terms designed to help you get back on track.

You might also need to show proof of steady income or offer collateral, such as cash deposits, vehicle titles, or a certificate of deposit (CD),  to strengthen your application. While this can feel like extra work, it also gives you a chance to prove your reliability and build better financial habits over time.

How Else Can a 520 Credit Score Affect Your Financial Life?

Credit scores influence more than loans and credit cards. Many landlords check credit scores before approving rental applications. A low score could make it harder to rent an apartment in a competitive market. Some landlords might ask for a larger security deposit to lower their risk.

You may also face extra steps when setting up utilities, getting a cellphone plan, applying for insurance, or qualifying for certain subscription services. Some service providers check your credit to decide if you need to pay upfront deposits. Knowing this ahead of time helps you prepare and avoid surprises.

What Can You Do to Improve Your Credit Health?

Improving your credit score is possible with consistent effort. Start by checking your credit reports for errors. You can get free copies once a year from major credit bureaus, namely Equifax, Experian, and TransUnion. If you find mistakes, report them right away to have them corrected.

Next, focus on paying all your bills on time and reducing your debt. You might also consider opening a secured credit card or a credit-builder loan. These tools help you build positive payment histories, which can slowly improve your score. Keep in mind that progress takes time, but every positive step counts.

Moving Toward Better Financial Health

While a 520 credit score presents challenges, it also marks a clear starting point for improvement. With informed steps and consistent financial habits, it’s possible to rebuild credit and expand future financial opportunities. For those uncertain about next steps, consulting a financial professional can provide valuable clarity and direction.