What a 520 credit score means
A 520 is Poor on FICO's scale (300 to 579), 60 points below Fair at 580. FHA can still insure a loan at this score with at least 10% down, but it sits 100 points below the 620 many lenders still require for conventional loans. On a $300,000 conventional purchase loan at 80% loan-to-value, Fannie Mae's fee for this score band is 2.75%, or $8,250; at 640 to 659 it would be $6,750.
Where 520 sits in the Poor band
Compared with everyone else
FICO's fall 2026 report found 10.5% of scorable consumers below 550 on FICO Score 8, and a 520 is in that group. The average was 714 and the median 744. A 520 is 194 points below 714 (the average) and 224 points below 744 (the median). FICO, fall 2026.
The same number on other scales
FICO 8, 9, 10 and 10T and VantageScore 3.0 and 4.0 all run 300 to 850, so 520 means the same position on each scale, though not the same band label: VantageScore tiers vary by publisher. FICO's auto and bankcard scores run 250 to 900. Your scores from different models and bureaus are usually different numbers. Every scale, explained.
Lender milestones from 500 to 800
A 520 clears 1 of the 13 cutoffs on our list. The next one is 580, 60 points away: FHA with 3.5% down.
| Score | What changes there | From 520 |
|---|---|---|
| 500 | FHA floorFHA can insure loans for scores from 500 to 579 with at least 10% down. | Cleared |
| 580 | FHA with 3.5% downAt 580 FHA allows the 3.5% minimum down payment, and FICO calls the band "Fair". | 60 points to go |
| 620 | Common lender minimumMany lenders still require 620 for conventional loans, even after Fannie Mae dropped its own floor in automated underwriting. | 100 points to go |
| 640 | Next pricing bandFannie Mae's pricing grid steps every 20 points from 640 up to 780. | 120 points to go |
| 660 | Next pricing bandAnother 20-point step on Fannie Mae's loan-level pricing grid. | 140 points to go |
| 670 | FICO "Good"FICO labels 670 to 739 as Good. | 150 points to go |
| 680 | Next pricing bandAnother 20-point step on Fannie Mae's loan-level pricing grid. | 160 points to go |
| 700 | Next pricing bandAnother 20-point step on Fannie Mae's loan-level pricing grid. | 180 points to go |
| 720 | Next pricing bandAnother 20-point step on Fannie Mae's loan-level pricing grid. | 200 points to go |
| 740 | FICO "Very good"FICO labels 740 to 799 as Very Good, and it is another pricing step. | 220 points to go |
| 760 | Next pricing bandAnother 20-point step on Fannie Mae's loan-level pricing grid. | 240 points to go |
| 780 | Best mortgage pricing band780 is the top band on Fannie Mae's loan-level pricing grid. | 260 points to go |
| 800 | FICO "Exceptional"FICO labels 800 and up as Exceptional. Past this point, extra points rarely change a price. | 280 points to go |
Mortgages at 520
FHA
FHA rules require 10% down
FHA insures loans for decision scores from 500 to 579, but caps the loan at 90% of the home's value, so you need at least 10% down. On a $300,000 home that's $30,000, compared with $10,500 at 580, which is 60 points away.
HUD's rules, per Mortgagee Letter 2026-11, which keeps the 580 and 500 lines for every score model FHA accepts. Lenders often set higher minimums, called overlays. FHA score rules in full.
Conventional
No minimum in DU, but many lenders want 620
Fannie Mae's Desktop Underwriter no longer applies a minimum score for casefiles created on or after November 16, 2025, so a 520 is not an automatic no from Fannie Mae's system. Many lenders still require 620 anyway, and a manually underwritten Fannie Mae loan needs 620 for a fixed rate and 640 for an ARM on Classic FICO. You're 100 points from 620.
Sources: Fannie Mae Selling Guide B3-5.1-01 and the DU 12.0 release notes. Conventional score rules in full.
What Fannie Mae charges at this score
Purchase loan, 75.01% to 80% loan-to-value, $300,000 loan
$8,250
2.75% of the loan, band 639 or lower
At 640 to 659, the next band up, the fee is 2.25%, or $6,750. That's $1,500 less on the same loan, and 120 points away. The top band, 780 or higher, pays $1,125. This applies only if a lender approves a conventional loan at this score.
| Score band | Fee | On $300,000 |
|---|---|---|
| 780 or higher | 0.375% | $1,125 |
| 760 to 779 | 0.625% | $1,875 |
| 740 to 759 | 0.875% | $2,625 |
| 720 to 739 | 1.25% | $3,750 |
| 700 to 719 | 1.375% | $4,125 |
| 680 to 699 | 1.75% | $5,250 |
| 660 to 679 | 1.875% | $5,625 |
| 640 to 659 | 2.25% | $6,750 |
| 639 or lower520 is here | 2.75% | $8,250 |
This is a one-time loan-level price adjustment (LLPA) from Fannie Mae's matrix dated 09.30.2026, which uses one grid for Classic FICO and VantageScore 4.0 (FHFA). Lenders usually build it into your rate rather than billing it, other adjustments can apply, and rates change daily. How the fee becomes your rate.
Car loans at 520
Experian sorts auto borrowers into tiers by VantageScore 4.0. If your VantageScore 4.0 is 520, you'd be in its subprime tier (501 to 600), 81 points below near prime at 601. Many auto lenders pull a FICO Auto Score (250 to 900) instead, so your tier at a given dealer can differ.
| $30,000 over 60 months | Subprime (501 to 600)this score | Near prime (601 to 660)next tier up |
|---|---|---|
| New car | ||
| Average APR | 13.52% | 9.71% |
| Monthly payment | $690.60 | $633.14 |
| Total interest | $11,436.00 | $7,988.40 |
| Used car | ||
| Average APR | 19.1% | 13.93% |
| Monthly payment | $779.87 | $696.96 |
| Total interest | $16,792.20 | $11,817.60 |
At these averages, moving from subprime to near prime would cut total interest by $3,447.60 on the new-car loan and $4,974.60 on the used one.
Averages from Experian's State of the Automotive Finance Market for Q2 2026, as published by Experian on Sep 10, 2026. They are averages across many loans, not offers. Payments use standard amortization with a fixed rate, no fees and no down payment. Credit scores and car loans.
What usually holds a score at 520
FICO weighs payment history at 35% of the score and amounts owed at 30%, so on a file in the Poor band the payment record is the first place to look. Pull all three reports free at AnnualCreditReport.com and read them side by side before you pay anyone for anything.
Recent serious late payments and charge-offs
Payments 60 or 90 days late, charge-offs and repossessions weigh the most while they're recent, and their weight fades as they age. Most negative items can stay up to seven years, and for collections and charge-offs that clock is tied to the date of first delinquency. See how late payments affect scores.
Collection accounts
A collection is its own negative item. FICO 9, FICO 10 and VantageScore 3.0 and 4.0 ignore paid collections, but FICO 8 and the classic mortgage scores still count them. Before paying, ask the collector to validate the debt, then read what paying a collection does and doesn't change.
Errors that aren't yours
A late payment you never made or a collection for someone else's debt costs more when the rest of the file is thin. Dispute anything inaccurate, incomplete or unverifiable, and leave accurate items alone: disputing true information backfires.
Too little history
Some low scores come from a file with very little in it rather than bad history. A secured card or credit builder loan that reports on-time payments every month gives the model something to read.
Cards near their limits
Balances close to the limit count against you in the amounts owed category. The balance that usually reports is the one on your statement, so paying before the statement closing date lowers what the bureaus see.
For a month-by-month order of operations, see a 12-month rebuild plan from near 500.
Nobody outside FICO and VantageScore can tell you how many points any one change is worth, because it depends on everything else in your file. These are the places to look, not a forecast.
Common questions about a 520
Is 520 a good credit score?
FICO labels 300 to 579 as Poor, so 520 is Poor, 60 points below Fair. It is 194 points below 714, the average U.S. FICO Score in FICO's fall 2026 report.
Can you get a mortgage with a 520 credit score?
FHA allows scores from 500 to 579 with at least 10% down, so 520 meets FHA's own score rule with that larger down payment, though lenders can set higher minimums. Fannie Mae's automated underwriting has no minimum score, but many lenders still want 620 for conventional loans. Fannie Mae's fee at this score is 2.75% of the loan at 80% loan-to-value, $8,250 on $300,000.
What car loan rate goes with a 520 credit score?
Experian's Q2 2026 data puts a VantageScore 4.0 of 520 in its subprime tier (501 to 600), where the average APR was 13.52% for new cars and 19.1% for used. At the new-car average, a $30,000 loan over 60 months works out to about $690.60 a month. Those are averages, not offers, and your lender may use a different score.
Sources
- What is a credit score? (FICO score ranges), myFICO
- What's in my FICO Scores?, myFICO
- FICO Score Credit Insights, fall 2026 edition, FICO
- Mortgagee Letter 2026-11 (issued Oct 8, 2026), HUD
- Selling Guide B3-5.1-01, General requirements for credit scores, Fannie Mae
- Desktop Underwriter Version 12.0, November 2025 release notes, Fannie Mae
- Loan-Level Price Adjustment Matrix (09.30.2026), Fannie Mae
- Credit scores, FHFA
- Average car loan interest rates by credit score (Sep 10, 2026), Experian
Every figure on this page is computed from the published rules and averages above, checked October 11, 2026. This is education, not lending advice: lenders add their own requirements, and your offer depends on your full application.