Is 575 a Good Credit Score?

By Austin Kilham

Your credit score has an impact on what loans and credit products you may qualify for, and may even influence your ability to rent an apartment, buy a house, or secure a job. As a result, it’s important to know what your credit score is and where you stand on the spectrum from poor to excellent.

A credit score of 575 is considered poor. However, that does not mean you won’t have access to credit products, nor does it mean you can’t improve your score for access to more options.

What Is a Credit Score?

Your credit score is a three-digit number that represents your entire credit history, including whether you’ve made credit payments on time, how much you owe, how long you’ve had credit, and whether you’ve taken on new credit or you’re seeking credit currently.

There are several companies that provide credit scores. The most commonly used is the FICO® Score. FICO compiles information from the major credit reporting bureaus and provides a score that ranges from 300 to 850.

According to FICO, scores of 580 and below are considered poor, meaning they are well below the average score for U.S. consumers. Scores this low may demonstrate that a borrower presents a significant risk to potential lenders. As a result, it may be more difficult — and expensive — to secure credit. The higher your score, the easier it may be to find a lender willing to extend credit to you. Individuals with the highest score are often able to secure loans with the best terms and lowest interest rates.

A good FICO Score falls within the 670 to 739 range, while scores of 740 to 799 are very good. Anything higher is considered exceptional. Scores between 580 and 669 are considered fair.

What Can You Get with a 575 Credit Score?

As mentioned above, it is not impossible to secure credit with a 575 credit score, but it may be more difficult. Here’s a look at some potential options.

Can I Get a Credit Card with a 575 Credit Score?

It is possible that you may be able to obtain a credit card with a 575 credit score. However, credit cards are typically unsecured debt, meaning you haven’t provided any collateral that a lender can take should you fail to pay your bill. As a result, lenders may avoid borrowers with poor credit. If they do extend credit, you may be required to pay extra fees or put down a deposit.

If you don’t qualify for a traditional credit card, you may consider a secured card. With secured credit cards, you put down a deposit and can then borrow against it, with a credit limit that’s typically equal to the size of the deposit. If you don’t pay your bill, the credit card company can simply take the deposit. However, on-time payments are reported to the credit reporting bureaus and may help boost your score.

Can I Get a Car Loan with a 575 Credit Score?

Similarly, it may be difficult to secure an auto loan with a poor score. A score of 575 puts you in the subprime category for loans. That means, you’ll likely be charged a much higher interest rate than borrowers with good to excellent credit scores.

Making a down payment can increase your likelihood of securing an auto loan and help manage the cost of interest. In fact, if you have poor credit, your lender may require that you put down at least 10% of the sales price of the vehicle. However, the bigger your down payment, the more likely you are to secure a loan and the lower your interest rate may be. What’s more, the less you borrow, the lower your monthly payment will be.

Can I Get a Mortgage with a 575 Credit Score?

Typically, lenders will require a credit score of at least 620 to buy a house with a conventional mortgage. This is a loan that is not backed by the U.S. government. Because the lender is taking on more risk, they are more selective about who they give mortgages to.

However, with a score of at least 500, you may qualify for an FHA loan backed by the Federal Housing Administration. These loans require that you make a down payment of at least 10%. If you pay less than that — down to 3.5% — you’ll need to have a credit score of at least 580.

To qualify for an FHA loan, you’ll also need to provide proof of steady income and pay mortgage insurance annually.

Can I Get a Personal Loan with a 575 Credit Score?

To secure a personal loan, you will typically need a FICO score of 580 or above. That said, there isn’t a minimum score required by all lenders. Shop around to see if you can find a lender willing to extend credit to a borrower with a 575 credit score. Be aware that you may face some of the same limitations as you would with other loans, including higher interest rates and fees.

If you can’t find a lender, or a loan that suits your needs, you may consider doing what you can to boost your credit score. Doing so may increase the options available to you.

How Can I Increase My Credit Score?

There are several strategies that can help you increase your credit score. The number one thing you can do: Always pay your bills on time. On-time payments are the largest factor in the calculations that form your credit score. The second largest? How much debt you have. If you already owe a lot, creditors might be nervous that you’re overextended and that making on-time payments on a new loan would be difficult. Another key way to build your credit score is to pay down existing debts.

One strategy for paying off debt is to consolidate high-interest debts using a lower-interest option, such as a credit card consolidation loan. The lower interest payments can make your debt more affordable, and you can use the money you save to pay down your debt faster.

A personal loan calculator can help you determine how much you are likely to save by consolidating debt using a personal loan.

Lenders also like to see that you have a long history of managing debts, so while you’re building your score, you may not want to close longstanding accounts.

You may also build credit by applying for a secured credit card or by becoming an authorized user on the account of a trusted person who has good credit.

The Takeaway

Unfortunately, a 575 credit score is considered a poor score. There may still be options for credit cards, auto loans, mortgages, and personal loans, though you may be stuck with higher interest rates or other costs. If you have the time, you may want to do what you can to increase your credit score before you borrow. Doing so can increase the number of options available to you as well as decrease the overall cost of borrowing.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

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