575 Credit score: A guide to credit scores
Quick insights
- A 575 credit score is considered subprime or poor according to FICO® and VantageScore® scoring ranges, respectively.,
- Having a 575 credit score may limit your access to credit and result in higher interest rates.
- Improving a 575 credit score requires a combination of financial discipline and smart credit management strategies.
A credit score is a three-digit number that shows how good you are at paying back loans. Lenders use it to figure out if you are likely to pay back a loan. If you're wondering whether a 575 credit score is good or bad, you may want to consider understanding what credit scores mean and how they're calculated. Let's find out more about credit scores and what a 575 credit score means.
Understanding your credit score
Your credit score is calculated based on the information found in your credit reports. This may include information such as:
- Payment history
- Credit utilization
- Length of credit history
The most widely used credit score is the FICO score, which ranges from 300 to 850. A good credit score is generally considered to be above 700.
To give you a better idea, a 575 credit score falls within FICO score 8’s subprime category, which means you may be considered a subprime borrower. For VantageScore 3, a 575 credit score falls within its poor category. This can make it more challenging to get approved for credit card loans or other forms of credit.
Is 575 a good credit score?
A 575 credit score is not considered good according to the FICO or VantageScore scoring models—it’s actually in their lowest scoring range.
According to Experian, as of 2024, VantageScore® 3.0 and 4.0 scores are broken down like this:
- 300-600: Subprime/not prime
- 601-660: Near prime
- 661-780: Prime
- 781-850: Super prime
FICO® scores are categorized like this:
- 300-579: Poor
- 580-669: Fair
- 670-739: Good
- 740-799: Very good
- 800-850: Exceptional
With a 575 credit score, you may face things like:
- Higher interest rates
- Stricter loan terms
- Loan rejections
For instance, if you apply for a mortgage with a 575 credit score, you may be offered a higher interest rate or be required to make a larger down payment. However, it's not impossible to get approved for credit with a 575 credit score.
You can consider applying for credit cards or loans from subprime lenders or credit unions to improve your chances of approval.
Chances of approval with a 575 credit score
Credit scores are not the only factors that are considered in credit applications. There are various factors assessed, such as the type of credit you're applying for, your income and your debt-to-income ratio.
To potentially increase your chances of approval, you can consider applying for credit cards or loans that are designed for people with poor credit. Keep in mind that some lenders specialize in offering credit products to people with lower credit scores. But these products may come with higher interest rates or fees, so you may want to carefully review the terms and conditions before applying or agreeing to anything.
To improve your chances of approval and help improve your credit, you can consider:
- Applying for a secured credit card: A secured credit card requires a deposit that becomes your credit limit, which can help build or rebuild your credit as you use it responsibly. Note: Chase does not offer secured credit cards.
- Becoming an authorized user on someone else's credit account: If the primary cardmember has good credit history, being an authorized user on their account can help your credit. That's because responsible credit usage may be reflected on your credit report too, if you're an authorized user on the card. However, any late payments or high credit utilization on their part can negatively affect your credit score as well.
- Improving your credit utilization ratio: Your credit utilization ratio, which is the percentage of your total available credit that you're using, can have a big effect on your credit score. Keeping this ratio below 30% is generally recommended.
- Making on-time payments: This generally has a big effect on credit scores, so making sure you can pay on-time consistently can be a good move if you want to improve your credit.
How to improve your credit score from 575
Improving your credit score takes time and effort, but it can be done. Here are some other steps you can consider taking to help improve your credit score:
- Checking your credit reports regularly for errors or inaccuracies: You can do this by requesting a free copy of your credit report from the three major credit reporting agencies using AnnualCreditReport.com.
- Focusing on making timely payments: Payment history accounts for a significant portion of your credit score, so this could be a good area to focus on.
- Reducing your debt and improving your credit utilization ratio: Keeping your credit utilization ratio below 30% can help improve your credit score.
- Not applying for too many credit cards or loans in a short time: This can hurt your credit score. Each hard credit check temporarily affects your credit score, usually by a few points.
- Keeping track of your credit score and how you're doing: You can use free credit monitoring services like Chase Credit Journey®, which gives you regular updates and alerts.
In conclusion
A 575 credit score is considered subprime or poor by credit scoring models. While it's possible to get approved for credit with a 575 credit score, you may face higher interest rates or stricter loan terms. By understanding what affects your credit score and taking steps to improve it, you can work toward achieving a better credit score and improving your financial health.
To do so, you may want to focus on making on-time payments, reducing debt and improving your credit utilization ratio to start building a stronger credit profile. Additionally, checking your credit report for errors and disputing any inaccuracies can help.
It’s also helpful to keep old credit accounts open, as a longer credit history can positively impact your credit. And consider signing up for credit monitoring services to track your progress and receive alerts for any changes in your credit report. Over time, these actions can help you move from a fair to a good or even excellent credit score.
