Q: What interest rate will a credit score in the mid 500s get?
A: It depends on what kind of credit you’re looking for. According to www.MyFico.com, if you have a credit score of 760 to 850, and you’re looking for a 30-year fixed rate mortgage, you’ll be able to get interest rates of approximately 6.1 percent. That’s the highest tier for credit.
But if your credit score is 500 to 579, which is the bottom tier, and well into the subprime world, the same loan would cost you 10.43 percent — if you can even get it. Many of the subprime lenders have been raising the minimum credit score required for loans.
Bear in mind, it’s entirely possible that you wouldn’t be able to qualify for a loan with a credit score of 500.