Is 580 a Good Credit Score?

By Jason Steele

(Last Updated – 05/2024)

If you have a 580 credit score, FICO technically considers it to be “Fair.” Scores below 580 are classified as “Poor.” FICO, by the way, is the producer of the most popular credit scoring formulas, whose scores range from 300 to 850.

On the other hand, scores of 670-739 are considered “Good,” while scores of 740-799 are “Very Good.” Scores of 800 and above are considered “Exceptional.” (Another company, VantageScore, uses a very similar scale for its scores.)

Here’s a look at what a 580 credit score means and what you can get with it.

What Does a 580 Credit Score Mean?

FICO and other credit score companies review your credit history and produce a score that measures the likelihood that you’ll repay a loan. Lenders use these scores to make decisions on whether to approve consumers for a personal loan or other type of loan and on what terms.

When looking at credit score ranges, you’ll find that 580 is the lowest possible score to be considered “Fair.” Anything below that is labeled as “Poor.” Having a score of 580 or below means that you may have a difficult time qualifying for new loans and that, if approved, you might not receive very favorable terms.

A FICO score of 580 may signify a limited credit history, serious credit problems, or both. Examples of serious credit problems can include multiple delinquencies or defaults, bankruptcy, and foreclosure.

Recommended: FICO Score vs. Credit Score

What Can You Get with a 580 Credit Score?

Generally speaking, borrowers with a 580 credit score may only be able to qualify for loans designed for those with fair or poor credit profiles. The industry term for these types of loans is subprime, with prime loans being reserved for applicants with good or excellent credit.

Can I Get a Credit Card with a 580 Credit Score?

If you have a credit score of 580, you may only be able to qualify for cards designed for those with fair credit. If you can’t qualify for one of those cards, then you may want to explore applying for a subprime credit card or a secured credit card.

A subprime card is one with much higher interest rates and fees, in order to account for the cardholder’s increased risk of delinquency or default.

A secured credit card works much like a standard, unsecured card, but it requires the payment of a refundable deposit before your account can be opened. This deposit is only used in the event that you fail to pay your bills and are in default. Otherwise, these credit cards allow you to make purchases and require a monthly payment, just like any other card. There are some secured cards with no annual fee.

Can I Get an Auto Loan with a 580 Credit Score?

Borrowers with a 580 credit score might find it a challenge to get a car loan. If you do line up a loan, it may come with very high interest rates and fees. That said, many car dealers work with lenders that offer loans to those with fair or poor credit. Just be sure to understand all of the terms and conditions of these loans before committing.

Can I Get a Mortgage with a 580 Credit Score?

The Federal Housing Administration (FHA) backs mortgage loans to borrowers who have a credit score as low as 580, with a 3.5% down payment. Even borrowers with a credit score of 500 can be accepted with a 10% down payment. Other types of loans, including conventional, Veterans Administration (VA) and U.S. Department of Agriculture (USDA), require higher credit scores. Note that you should expect to pay higher interest rates and to incur more fees when you have a credit score of 580.

Can I Get a Personal Loan with a 580 Credit Score?

It’s possible to get personal loans, including credit card consolidation loans, with a 580 credit score, as this is on the low end of a “Fair” credit score. As with other loans, you could be offered a loan with a higher interest rate and more fees than you would have qualified for with a good or excellent credit score.

Recommended: How Much of a Personal Loan Can I Get?

Takeaway

A credit score of 580 is on the lowest end of the “Fair” range. Anything below that score is considered “Poor,” and a borrower might have a more difficult time getting approved for a loan. Even with a credit score of 580, you will often have to find specific lenders and types of loans that are designed for your credit profile. By understanding what you can and cannot do with a credit score of 580, you can make the right decisions when it comes time to look for a loan.

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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