570 credit score: A guide to credit scores
Quick insights
- A 570 credit score is considered poor by FICO® and subprime according to VantageScore®.
- Lower credit scores might make it more difficult to get approved for credit.
- To improve a 570 credit score, you can practice responsible credit behaviors like reducing debt, making timely payments and fixing errors in your credit report.
Credit scores typically range from 300 to 850, with higher scores indicating better creditworthiness. A 570 credit score is in the lower scoring categories for both FICO and VantageScore, making it potentially more difficult to get approved for credit or qualify for favorable terms.
What else do you need to know about a 570 credit score and how it could impact you? Let’s find out.
Understanding a 570 credit score
Factors contributing to a 570 credit score may include late payments, higher credit utilization or recent negative credit events. Understanding the specific elements impacting your score can help you in creating a plan for improvement.
Is 570 a good credit score?
VantageScore's scoring ranges for VantageScore 3.0 are:
- Superprime: 781 to 850
- Prime: 661 to 780
- Near prime: 601 to 660
- Subprime: 300 to 600
FICO's credit score ranges for FICO Score 8 are categorized like this:
- Exceptional: 800 to 850
- Very good: 740 to 799
- Good: 670 to 739
- Fair: 580 to 669
- Poor: 300 to 579
Creditors may view those with a 570 credit score as a higher risk candidate, potentially leading to less favorable terms, such as higher interest rates or a shorter repayment period. This score may also limit your access to certain financial products, such as loans and credit cards.
Improving your credit score can open up more opportunities for financial products and more favorable terms.
What are my chances of approval with a 570 credit score?
Approval chances for loans and credit cards are generally lower with a 570 credit score. Some lenders offer products specifically designed for individuals with lower credit scores, which you may qualify for, but these may come with higher interest rates, additional fees or both.
How do I improve my 570 credit score?
Luckily, there are ways you can get your credit moving in a more positive direction. Consider the following tips:
- Start by reviewing your credit report for any errors, and dispute them if necessary.
- Focus on making payments on time, as payment history is a significant factor that makes up your credit score.
- Reduce your credit utilization ratio by paying down existing debts and avoiding new debt. A credit utilization ratio of 30% or below is considered favorable.
- Avoid applying for new credit unless necessary, since hard credit checks can temporarily lower your credit score.
- Consider keeping old credit accounts open to lengthen your average account age, which is another factor that can help your credit score.
Building a positive credit history over time can gradually improve your score from 570 to a higher range.
Conclusion
A 570 credit score can be your starting point for improvement. By understanding the factors that impact your credit score, you can take actionable steps towards achieving a higher score.
While approval chances may be more limited with a 570 credit score, there are ways to build and improve your credit profile. With consistent effort and responsible financial habits, you can begin moving from a poor credit score to a more favorable range.
