Is 601 a Good Credit Score?

By Jackie Lam

A 601 credit score isn’t bad or good — it falls squarely in the “fair” category and below the national average credit score of 715. While there’s a good chance you’ll get approved for a loan or credit card with that score, you might need to look a bit harder to land those coveted low interest rates and flexible terms.

Here, we’ll walk you through what a 601 credit score means, what types of financing you may be able to secure with such a score, and what you can do to boost your credit score.

What Does a 601 Credit Score Mean?

A credit score is a three-digit number that reflects your creditworthiness, or how likely you are to pay back the money you borrowed. Lenders use it along with other information to determine whether to approve you for credit and at what interest rate.

Credit scores typically range from 300 to 850. The higher the number, the better your score. Although you have different credit scores, the one used in most lending decisions is the FICO Score. It’s categorized as follows:

•   Poor: 300-579

•   Fair: 580-669

•   Good: 670-739

•   Very Good: 740-799

•   Excellent (or exceptional):: 800-850

As you can see, a 601 credit score is considered “fair,” which might impact whether you’re approved for credit and the terms you’re offered. If you’re preparing to apply for a loan or credit card, it’s a good idea to check your credit score so you have an idea of where your credit profile stands. Credit scores update every 30 to 45 days.

Recommended: FICO Score vs. Credit Score

What Else Can You Get with a 601 Credit Score?

Having a fair credit score might prevent you from qualifying for some types of loans and credit cards. And the ones you are approved for may come with steeper interest rates and less-flexible terms.

However, there are some financial products you may be able to get with a 601 credit score. Let’s take a closer look.

Can I Get a Credit Card with a 601 Credit Score?

In general, the better your credit score, the better your chances of getting approved for a credit card. With a 601 credit score, your choices may be more limited. What’s more, your APR might be higher, and it’s possible you won’t qualify for cards with rewards or cash-back opportunities.

However, options do exist. Here are two to consider:

Secured cards

If you are working toward building or establishing your score, you might consider a secured card. These are cards backed by a security deposit, which acts as a form of collateral in case you fall behind on your payments. The security deposit amount and line of credit typically match each other. So if your security deposit is $500, so is your line of credit.

On the upside, a secured card usually has lower minimum credit score requirements and less-rigid financial criteria. On the downside, they also typically have higher interest rates, lower credit limits, and fewer perks.

Retail cards

Retail and store cards are cobranded cards with a store or group of retailers. You can usually only use the card at that particular store, and it may come with loyalty discounts and promotions specific to the retailer.

Retail cards tend to have lower minimum score requirements and less-stringent criteria, but they also tend to have higher interest rates. Plus, you can usually only use the card at that retailer.

Can I Get an Auto Loan with a 601 Credit Score?

Yes, it’s possible to get an auto loan with a 601 credit score, though you might end up paying more in borrowing costs. According to 2024 data from Experian, the average interest rate on a new car for a borrower with a 601 credit score is 9.83%. (That rate jumps to 13.92% for used cars.) Compare that to the 5.25% average interest rate offered to borrowers with a credit score of 781 or higher.

Can I Get a Mortgage with a 601 Credit Score?

Securing a credit card or car loan is one matter, but what about getting a mortgage on a house with a 601 credit score? It depends on the type of home loan you’re applying for. For example, borrowers usually need to have a credit score of at least 620 to qualify for a conventional loan or VA loan.

With a 601 credit score, you may want to focus on FHA loans. These loans are backed by the Federal Housing Administration (FHA) and have less-stringent eligibility requirements than a conventional loan. Borrowers with a 580 credit score are eligible with a 3.5% down payment. People with a credit score as low as 500 may also qualify; however, they’ll be required to make a 10% down payment.

It’s also worth noting that your credit score is just one factor lenders consider in their decision. They’ll also consider a range of other factors, such as your debt-to-income (DTI) ratio, earnings, and job consistency.

Recommended: How to Get a Mortgage

Can I Get a Personal Loan with a 601 Credit Score?

Personal loans can be an attractive form of financing because you can use the funds for nearly any purpose.

With a 601 credit score, your personal loan options may be more limited than they would be if you had a higher score. However, there are lenders who may consider approving you for a loan, though it could come with a higher interest rate and less-flexible terms.

Still, you may come out ahead financially if you use the funds from the personal loan to consolidate high-interest debt, such as credit cards. That’s because personal loans are generally less expensive than credit cards.

As you’re considering your options, it’s important to understand how much you’ll pay for the loan over its lifetime. A personal loan calculator can help you arrive at an estimate based on the rates and terms you’re offered.

The Takeaway

Wondering if a 601 is a bad credit score or a good one? Technically, it falls in the “fair” category, though it’s well below the average American’s credit score of 715.

Whether you’re shopping around for a mortgage, auto loan, credit card, or personal loan, you might want to consider building your credit before pulling the trigger and formally applying.

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.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

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