590 credit score: A guide to credit scores
Quick insights
- A 590 credit score is considered fair according to FICO® and subprime according to VantageScore®.
- A 590 score is in VantageScore’s lower scoring category and FICO’s second-lowest.
- To help improve a 590 credit score, you can practice responsible credit behaviors such as reducing your credit utilization and making timely payments.
Credit scores typically range from 300 to 850, with higher scores indicating better creditworthiness. So where does a 590 credit score fall on the spectrum, and what else do you need to know? Read on to find out.
Is 590 a good credit score?
A 590 credit score is considered fair by FICO, which is FICO’s second lowest scoring category. According to VantageScore, a 590 score is subprime, which is in their lowest scoring category.
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
Understanding a 590 credit score
Individuals with a 590 credit score may face challenges in qualifying for favorable loan terms. This score range may result from various factors, including missed payments, high credit utilization or a limited or non-existent credit history.
Lenders may view these individuals as a higher risk, leading to higher interest rates on loans and credit cards. It may limit access to premium credit products, such as rewards credit cards or low-interest loans. Improving this score may lead to better financial opportunities and lower borrowing costs.
Chances of approval for a home loan with a 590 credit score
Buying a home with a 590 credit score may be possible, but 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.
Chances of approval for an auto loan with a 590 credit score
Buying a car may be possible with a 590 credit score, but different dealerships and lenders may use different credit scoring models and different scales to make their own loan decisions, which could impact your loan terms and approval odds. Even with a good credit score, you may be declined, subject to higher interest rates or need to provide a larger down payment than if you had a higher credit score.
To help improve your chances for approval, it is usually beneficial to add a co-signer to the loan—if the lender allows—to share financial responsibility. All applicants should take note that while important, your credit score is just one of several factors lenders take into account when approving a loan.
How to improve a 590 credit score
Now that we’ve talked about how important it is to have a good credit score, you might be wondering how to get started. Here are some tips to keep in mind on your credit improvement journey:
- Make all your payments on time: Payment history is an important factor that makes up your credit score, so try to make your payments on time.
- Review your credit report: 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. A credit utilization ratio of 30% or below is generally favorable.
- Avoid applying for new credit unless necessary: Hard credit checks can temporarily lower your credit score.
- Consider keeping old credit accounts open: This may help lengthen your average account age, which is another factor important to your credit score.
- Monitor your credit: Keeping an eye on your credit score can help you track your progress and be proactive. Using a free credit monitoring tool like Chase Credit Journey® can help you to monitor your credit and get updates about your credit.
Conclusion
A 590 credit score can pose challenges when it comes to securing credit or qualifying for the most favorable terms, but there are also opportunities for improvement and growth. By understanding the potential risks of a 590 credit score and taking proactive steps, you can help improve your credit health and open the doors to more favorable loan terms.
So just remember: With dedication, consistency and the right steps, working your way from a fair or poor credit score to a good one is possible.
