Is a 387 credit score bad? Loans, cards & rates explained

Yes, a 387 credit score is generally considered a very low score and signals high risk to most lenders. It falls well below the 'fair' range (typically 580‑669) that many mainstream banks use as a baseline for approving standard loans or credit cards, so you'll likely face limited options, higher interest rates, or larger deposits if you do get approved. However, the score isn't an absolute barrier - some specialty lenders, secured‑card programs, and community banks work with sub‑600 scores and may still offer products tailored to rebuilding credit.

Because a 387 score reflects significant negative items (such as missed payments, collections, or high utilization), lenders view it as an indicator of past financial trouble. That perception translates into tighter terms: smaller loan amounts, stricter income verification, and possibly the need for a co‑signer or collateral. Before applying, check your credit report for errors, consider secured alternatives that require a deposit, and focus on actions that improve payment history and reduce debts to move out of this high‑risk tier.

387 credit score sits firmly in the 'poor' range, meaning most lenders view you as a high‑risk borrower. It signals a history of missed or late payments, high credit utilization, or limited credit activity, so you'll typically face tighter loan terms, higher interest rates, or outright denials unless you qualify for special programs.

For example, if you apply for a personal loan with a 387 score, many mainstream banks will likely reject the application, while some niche lenders might approve you at a significantly higher APR and require a larger down‑payment or collateral. Similarly, credit cards that accept a 387 score are often secured cards or those marketed to rebuild credit; they usually come with modest limits and may charge annual fees. In each case, the score tells lenders you carry greater risk, which directly shapes the products they're willing to offer.

high‑risk Lenders flag a 387 score as high‑risk because it signals a strong likelihood of missed payments, limited credit history, and a higher chance of default. In their models, a score that low usually falls in the 'subprime' range, which means they price the loan more aggressively or require extra safeguards.

Typical risk factors lenders consider for a 387 score include:

• Recent or frequent late payments (30+ days past due) on any account
• Thin or inactive credit file, often fewer than three open tradelines
• High utilization on existing cards, showing reliance on revolving debt
• Recent collections, charge‑offs, or bankruptcies, which raise default probability
• Limited mix of credit types, making the borrower appear less experienced

Check your credit report for these items and address any errors before applying; correcting inaccuracies can improve how lenders view your risk profile.

You can get a loan with a 387 credit score, but expect tighter terms and fewer choices.

1. **High‑risk personal loans** - Some online lenders and community banks offer 'bad‑credit' personal loans that accept scores in the high‑300s. Approval is possible, yet they often require a higher interest rate, a larger down payment, or a co‑signer. Treat the loan amount as a short‑term bridge rather than a long‑term financing solution.
2. **Secured loans** - Using collateral such as a savings account, vehicle, or home equity can make lenders more comfortable with a 387 score. Because the loan is backed by an asset, you may qualify for lower rates than an unsecured high‑risk loan, though you risk losing the collateral if you miss payments.
3. **Credit‑builder or installment loans** - Certain fintech platforms provide small installment loans specifically designed to help rebuild credit. These loans are typically limited in size and come with modest fees, but they report on time to the credit bureaus, which can slowly improve your score.

• Before applying, verify each lender's fee structure, repayment schedule, and any required documentation to avoid surprise costs.

If your score sits around 387, issuers that specialize in building or rebuilding credit are your best bet, but approval still hinges on each company's underwriting rules and the details you provide.

• **Secured credit cards** - Most banks and credit unions offer a secured option that requires a cash deposit (often equal to your credit limit). Because the deposit backs the line, many of these cards accept scores well below 400.
• **Retail store cards** - Some department‑store or gas‑station cards have lower minimum scores and may approve you based on income or employment status rather than credit history alone.
• **Student‑oriented cards** - If you're enrolled in school, certain student cards consider tuition payments and school email verification, allowing approval with sub‑prime scores.
• **Credit‑builder cards from fintechs** - A few online lenders market 'credit‑builder' products that report to all three bureaus and typically require only proof of steady income.
• **Co‑signed or authorized user cards** - Being added as an authorized user on someone else's account, or applying with a co‑signer who has strong credit, can improve your chances of approval.

Before you apply, check each issuer's current eligibility criteria, confirm whether the card is secured or unsecured (to align with later comparisons), and read the cardholder agreement for any fees or reporting policies.

A secured credit card lets you open a line of credit by depositing cash that becomes your collateral, while an unsecured card gives you a revolving line based only on your credit profile - no deposit required.

With a secured card, the issuer typically sets your credit limit equal to the amount you lock up, so approval is usually easy even with a 387 score; you'll need to fund the deposit before use, and any missed payments can put that money at risk. An unsecured card relies on the lender's risk assessment; many issuers will reject a 387 score, but some specialty cards may still approve you with lower limits or higher fees.

Key differences

• Deposit vs. none: Secured requires a refundable cash pledge; unsecured does not.
• Approval odds: Secured cards are generally accessible for low scores; unsecured cards often need a higher score.
• Credit‑building impact: Both report activity to bureaus, but secured cards let you build while protecting the deposit if you manage them responsibly.
• Potential costs: Secured cards may have lower or no annual fee but charge a small transaction fee; unsecured cards for risky borrowers may carry higher fees or interest rates.

Always read the cardholder agreement to confirm fees, reporting practices, and what happens to your deposit if you default.

With a 387 score you'll generally face high‑interest rates, often well above what consumers with good credit see. Expect unsecured personal loan APRs to sit roughly in the 20 % - 35 % range and credit‑card APRs to hover around 20 % - 30 %, though exact numbers vary by lender, loan size, and state regulations.

What drives those rates:

• Risk rating: Low scores signal higher default risk, so lenders add a premium.
• Loan type: Secured products (like a car loan) can be cheaper than unsecured ones.
• Lender category: Credit unions and community banks may offer tighter spreads than online fintechs.
• State caps: Some states limit maximum APRs, which can lower the top end of the range.
• Credit‑building programs: Cards that report to all three bureaus sometimes carry slightly lower rates if they're designed for rebuilding credit.

If you need cash right now and your credit score is around 387, your options are limited, costlier, and often come with stricter eligibility requirements.

• Payday‑style short‑term loans - Typically easy to qualify for, but they carry very high interest rates and fees; read the loan agreement carefully and confirm the total cost before borrowing.
• Cash‑advance on a secured credit card - If you already have a secured card, you may be able to withdraw cash up to a portion of your credit limit; expect an upfront fee and a higher APR than regular purchases.
• Friends or family loan - Informal arrangements can be the cheapest source of funds; put the terms in writing to avoid misunderstandings.
• Employer‑offered advance or paycheck loan - Some workplaces provide early wage access; verify any repayment schedule and whether fees apply.
• Community assistance programs or local charities - Non‑profit emergency assistance may cover rent, utilities, or food without repayment; eligibility varies by program.

Whatever route you choose, double‑check the total repayment amount, any fees, and whether the lender is licensed in your state before proceeding.

A 387 score can start moving upward within weeks if you focus on the five actions that most lenders reward.

1. Pay down existing revolving balances - Reduce credit‑card utilization below 30 % of each limit; the lower the ratio, the more quickly your score can improve.
2. Dispute any inaccurate items - Pull your free credit reports, flag errors (e.g., wrong late payments or duplicated accounts), and have the bureaus correct them; cleared mistakes can add points instantly.
3. Add a low‑risk credit line - Open a secured credit card or become an authorized user on a family member's well‑managed account; both create positive payment history without large new debt.
4. Keep older accounts open - Length of credit history matters, so avoid closing long‑standing cards even if you're not using them regularly.
5. Limit new hard inquiries - Each inquiry can dip your score by a few points; space out any necessary applications and consider 'soft' checks when available.

Only pursue steps you can comfortably maintain - overextending yourself can undo progress.

Improving a 387 credit score typically takes many months, often a year or more, because each factor - payment history, utilization, and account age - changes gradually. If you consistently pay all bills on time, keep balances well below 30 % of each limit, and avoid opening new accounts, you'll see steady gains rather than a sudden jump.

Most people notice a modest bump (20‑40 points) after about three to six months of perfect payments and low utilization; larger moves (50‑100 points) usually require 12‑18 months of the same habits plus the natural aging of older accounts. Remember, the exact pace varies by lender and your overall credit mix, so monitor your reports regularly to verify progress.

Keep tracking your score monthly, correct any errors you spot, and stay disciplined with the habits above; that consistent effort is what ultimately pulls you out of the 'high‑risk' zone.