585 credit score: A guide to credit scores
Quick insights
- A 585 credit score is considered fair by FICO® and subprime according to VantageScore®.
- A 585 score can make it potentially more difficult to get approved for credit.
- To improve a 585 credit score, you may want to check your credit report for errors, reduce debt and make timely payments.
A 585 credit score is considered fair according to FICO Score 8 and subprime according to VantageScore 3.0.
Having lower credit scores means you could be seen as a higher risk for lenders. What else does it mean for you if you have a 585 score? Let’s explore.
Understanding a 585 credit score
Credit scores are three-digit numbers used to assess creditworthiness. Lenders refer to credit scores when making lending decisions, like deciding who to lend money to and according to what terms and conditions.
Credit scores generally range from 300 to 850, with scores below 580 or 600 usually categorized in the lowest scoring category. A 585 credit score is considered poor or subprime according to some credit scoring models.
Factors contributing to a low credit score may include late payments, high credit utilization and negative marks like collections or bankruptcies. A 585 score may limit financial opportunities, but it's possible to improve it over time with the right steps.
Is 585 a good credit score?
A 585 score is considered fair according to FICO, and subprime according to VantageScore.
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
Having a lower credit score can have impacts on your financial opportunities or options. While lenders may view lower scores as a higher risk, they typically consider several factors when evaluating credit applications. A low score may increase the likelihood of being denied or receiving less favorable terms, but other aspects—such as income and overall financial situation—are also taken into account.
Insurance companies and landlords may also use credit scores to assess risk, potentially affecting premiums and rental approvals.
What are my chances of approval with a 585 credit score?
Your chances of approval for credit, like credit cards or loans, with a 585 credit score depend on various factors, including:
- The type of credit you're applying for
- Your income
- Your credit utilization ratio
- Your debt-to-income ratio
- Your payment history
To help increase your chances of approval, you could try applying for credit cards or loans that are made for people with lower credit scores. Some lenders also specialize in offering credit products to people with lower credit scores. Keep in mind that these products may come with higher interest rates or fees, so it can be important to carefully review the terms and conditions before agreeing to anything.
When trying to qualify for a mortgage, it may be more challenging than if you had an excellent credit score. Some lenders may require a larger down payment, charge higher interest rates or have stricter loan terms. Whatever you decide, carefully review and compare different lenders and loan options to find your best fit for your specific circumstances. While important, credit scores are just one of several factors lenders use when approving home loans. In general, some lenders may require a larger down payment, charge higher interest rates or have stricter loan terms for mortgage applicants they may consider in the "good" range.
How to improve my 585 credit score to 700+
So how do you improve your credit? Here are some tips to get started:
- Make all your payments on time: Payment history is an important factor making up your credit score.
- Review your credit reports: This allows you to check for errors and dispute any inaccuracies that could be negatively affecting your credit.
- Lower your credit utilization ratio: You can do this by paying down existing debts and balances and spending less on your credit card. A credit utilization ratio of 30% or below is typically favorable.
- Avoid applying for new credit unless necessary: This matters because hard inquiries can temporarily lower your credit score.
- Consider keeping old credit accounts open: This can help to lengthen your average account age, which is another factor that can help your credit score.
- Monitor your credit: Keeping an eye on your credit score can help you to track your progress and be proactive in fixing any issues. Using a free credit monitoring tool like Chase Credit Journey® can help you track and receive updates about your score.
Improving your credit score is possible, but it takes time and responsible financial behavior. Don’t hesitate to seek professional advice if needed.
Conclusion
Living with a 585 credit score can mean more limited credit access and less favorable loan terms or interest rates. Understanding your credit score and its impact on your financial opportunities can help you make more informed decisions in the future.
While a 585 credit score might seem like a setback, it's important to remember that improvement is possible with dedication and consistent effort. By taking proactive steps—like paying bills on time, reducing your credit utilization and regularly checking your credit report for errors, you may gradually enhance your score.
Achieving a higher credit score can open doors to more favorable loan terms and lower interest rates. Remember, a 585 credit score is not a permanent barrier—with persistence and smart financial habits, you may improve your credit profile.
