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A 590-credit score isn’t, nor is it a bad credit score. It doesn’t stop you from getting any new credit. However, it will cost you more money in fees and higher interest rates, though.
A 590-credit score tells lenders you don’t handle your finances properly, but there are ways you can improve it.
How Bad is a 590 Credit Score?
Credit Scores range from 300 – 850. 300 is the worst, and 850 is the best, but most consumers fall somewhere between.
The good news is a 590-credit score isn’t the worst, but it’s not the best either. It falls in the range that the credit bureaus call ‘fair.’ If you have a 590-credit score, it’s best to improve it.
Tips to Improve Your 590 Credit Score
#1. Review Your Credit Report
Start by reviewing your credit report to determine why you have a 590-credit score. Look at each tradeline, looking for inaccurate information, late payments, missed payments, or overuse of your credit.
Knowing why your score is so low is half the battle, giving you the information you need to move forward.
#2. Dispute Inaccurate Information
Any incorrect information you find on your credit report, you may dispute with the credit bureau. You must write a dispute letter to the credit bureau reporting the information, stating the error, and providing proof of why they’ve reported it incorrectly.
#3. Consider a Credit Repair Company
If you aren’t comfortable disputing the errors on your credit report yourself, you can hire a credit repair company.
For a monthly fee, credit repair companies will dispute errors and unfair information reported on your credit report, using the tactics they know how to use that will get the credit bureaus and/or creditors to remove the information.
For years, Credit Sainthas helped thousands of Americans successfully repair their credit. Bringing transparency, great customer service, and a 90-day money-back guarantee, they are our top choice.
#4. Form Good Credit Habits
Once you dispute all incorrect information, figure out what credit habits you can change to fix your credit.
For example, if you have a habit of missing your payments, set up autopay, so you never miss a payment again. If you use your credit cards too much, lock them up or give them to a trusted family member, so you don’t use them.
The more consistent you can be with your credit use and how you pay your bills, the faster your credit score will increase.
>> More: How to Build Credit
#5. Apply for a Secured Credit
A 590-credit score makes it hard to get ‘standard’ credit cards. Most credit card companies will either charge very high APRs and annual fees or will require you to get secured credit.
A secured credit card requires you to put down a deposit on the credit card. The credit card company makes this your credit line.
If you don’t pay your bill, they will keep your deposit. If you make your payments on time, after about 6 – 12 months, you should be able to convert it to a standard credit card or apply with another credit card lender.
#6. Credit Builder Loans
A credit builder loan is another way to build your credit. It’s not an actual loan, but it acts like one, so you get the ‘credit’ for making your payments.
You ‘borrow’ a certain amount and have fixed payments due each month. If you make your payments each month on time, the creditor will report the on-time payments to the credit bureaus, which should help increase your credit score. After you pay the entire loan, you receive the ‘loan amount’ back.
What Impacts Your 590 Credit Score?
Bankruptcies and foreclosures are public records that hurt your credit score the most. Collections are another common factor that brings credit scores down. Any ‘negative’ credit line that shows you aren’t responsible with your money.
Your payment history is the largest component of your credit score. It makes up 35% of your credit score, so even one payment made over 30 days late can bring your credit score down quite a bit.
If you miss payments altogether, the creditor will charge the account off, which hurts your credit score significantly. If the creditor sells your account to a collection agency, it could hurt your credit score even further.
Credit Utilization Rate
Your credit utilization rate is the comparison of your outstanding credit to your credit line. If you have over 30% of your credit line outstanding at any one time, it can hurt your credit. This means $300 for every $1,000 credit line.
If you have much one type of credit, such as revolving debt, it can hurt your credit score. Creditors look for a good mix of revolving, installment, and mortgage debt to help your credit score.
>> More: How to Fix Your Credit
Recent Credit Activity
If you have many inquiries, charged all your credit lines, or took out several loans in a short period, it can cause your credit score to fall.
What Loans Can You Get with a 590 Credit Score?
A 590-credit score doesn’t make it easy to get a new loan. You may get unsecured credit cards but with an APR higher than those with good credit get.
Getting a loan may be difficult with this score, but if you do, expect to pay higher origination fees (upfront fees) and higher interest rates. In short, a 590-credit score will cost you much more in fees and interest if you get a loan. It’s best if you try to improve your credit score before applying for a loan.
Can I Buy a House with a 590 Credit Score?
It may be difficult to buy a home with a 590-credit score. Your best bet is the FHA loan, which allows credit scores as low as 580. You’ll need a 3.5% down payment, stable employment/income, and no more than 43% of your income should be committed to debts, including the new mortgage.
>> More: How to Buy a House with Bad Credit
Can You Get a Car with a 590 Credit Score?
You may be able to get a car loan with a 590 score, but you won’t get the low-interest rates car dealerships advertise. You’ll pay a higher APR and often higher fees to get the loan.
Bottom Line: 590 Credit Score
If you have a 590-credit score, see what you can do to improve it before applying for new credit. Your credit score determines what loans you get, and sometimes even what insurance or job you get since many companies pull credit before doing business with or hiring a new employee.