400 Credit Score: What It Means & What You Can Get

Mortgage

Manual underwriting only

Traditional mortgages are not available. Significant compensating factors required for any approval.

Auto Loan

Buy-here-pay-here only

Rates: 20–25%+

Traditional financing very difficult. Large down payment required.

Credit Cards

Secured cards only

$200–500 deposit required. No rewards. Used to build history.

Personal Loans

High-cost lenders only

Rates: 25–36% APR

Predatory lenders. Strongly recommend building credit first.

Business Funding

MCAs only

Merchant cash advances only — expensive. Build personal credit first.

Apartment Rental

Cosigner usually needed

Larger deposit (2–3 months) or income proof of 4× rent typically required.

Truck / Equipment

30–50% down required

Rates: 14–20%

Limited to older equipment. Difficult overall.

Dispute inaccurate negatives

1 in 3 reports contain errors. Disputing collections, late payments, and incorrect balances is the fastest lever.

Pay-for-delete on small collections

Negotiate written pay-for-delete agreements on collections under $1,000 before paying.

Become an authorized user

Add yourself to a family member's aged, low-utilization card to inherit positive history.

Open a secured card, keep at <10% util

Build positive payment history. Secured cards graduate to unsecured after 6–12 months.

Pay down revolving below 30% utilization

Utilization is 30% of your FICO score. Even a one-month drop registers immediately.

Is a 400 credit score good or bad?

How long does it take to improve from 400 to 500?

What's the fastest way to improve a 400 credit score?