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. See your rate in minutes.

By Jason Steele

(Last Updated – 05/2024)

A 740 credit score is generally considered very good. It falls relatively high on the credit scoring range (typically 300 to 850), and is above the average credit score of 714. With a credit score of 740, you are likely to have access to a variety of credit products and may qualify for favorable interest rates and terms.

That said, a 740 credit score still lands below the highest credit tier (known as “excellent” or “exceptional” credit), indicating that there is still room for improvement. Here’s a look at what types of mortgages, car loans, personal loans, and credit cards you may be able to get with a 740 credit score.

What Does a 740 Credit Score Mean?

A credit score is a number designed to predict how likely a person is to repay a loan, based on their credit history. It is used by lenders to assess the risk of lending money to an individual. Credit scores typically range from 300 to 850, with higher scores indicating a lower credit risk. Factors that can impact your credit score include your payment history, amounts owed, length of your credit history, and the types of credit you use.

You actually don’t have just one credit score, but several. The reason is that credit scores can be calculated using different credit reports (we each have three, one from each of the major consumer credit bureaus) and different scoring models, such as FICO^®, VantageScore^®, or a lender’s own proprietary algorithm.

According to FICO, which is the most widely used scoring model, a 740 credit score means you have “very good” credit. Here’s a look at exactly where a 740 score falls on the FICO rating system:

Here’s a look at how FICO credit score ranges are typically categorized:

•   300-579: Very Poor

•   580-669: Fair

•   670-739: Good

•   740-799: Very Good

•   800-850: Exceptional

A score in the “very good” range tells lenders that you have a history of managing credit responsibly and are likely to continue doing so in the future. Late payments appear on just 23% of credit reports among people with credit scores of 740, according to Experian.

In the VantageScore model, a 740 credit score also falls in the second-to-highest tier (661-780) and is considered “good.”

What Can You Get with a 740 Credit Score?

With a credit score of 740, you should be able to qualify for most credit cards, including rewards credit cards. In addition, you can likely qualify for home loans, student loans, auto loans and personal loans with favorable rates and terms. Here’s a closer look at what types of lending products you can get with a 740 credit score.

Can I Get a Credit Card with a 740 Credit Score?

With a credit score of 740, you are likely to qualify for most credit cards, including those with rewards programs and other benefits. Lenders and creditors generally consider a credit score of 740 to be very good, indicating that you are a low credit risk. This makes you an attractive candidate for credit card issuers, who are likely to offer you favorable terms and conditions.

That said, credit card companies usually reserve their premier or top rewards cards for borrowers with exceptional credit (800-850).

Recommended: How Do I Check My Credit Score?

Can I Get an Auto Loan with a 740 Credit Score?

Yes, a credit score of 740 is considered very good when applying for an auto loan. This means you are likely to qualify for car loans with competitive interest rates and terms. Lenders see a credit score of 740 as an indicator that you are a responsible borrower who is likely to repay the loan on time. For new auto loans, most borrowers have scores of around 730.

TA score higher than 740, however, could unlock an even better rate on a new or used car loan. Here’s a look at how your credit score can impact the annual percentage rate (APR) you’ll pay on an auto loan.

Source: Experian’s State of the Finance Market Report (fourth quarter of 2023)

When applying for an auto loan, keep in mind that lenders will likely consider other factors, including your income and the size of your down payment, when deciding whether or not to approve you for a car loan and at what rate.

Can I Get a Mortgage with a 740 Credit Score?

With this score, you should have no trouble getting approved for a home mortgage loan. You should also be able to unlock some of the best interest rates and terms available. Mortgage lenders view a credit score of 740 as a sign that you are a low credit risk and are likely to repay the loan as agreed.

When you apply for a mortgage, however, lenders will also consider other factors, such as the amount of your down payment and your income. Mortgage companies will also be interested in your debt-to-income ratio (DTI), which tells them what percent of your income is going toward debt repayment each month. They generally prefer to see that ratio remain below 36%.

To calculate your DTI, simply add up your monthly debt payments (including rent and all of your debt obligations), divide that number by your monthly gross income, then convert the figure into a percentage by multiplying it by 100.

Can I Get a Personal Loan with a 740 Credit Score?

With a credit score of 740, you are likely to qualify for most personal loans. Lenders generally consider a credit score of 740 to be very good, indicating that you are a low credit risk. This makes you an attractive candidate for personal loan lenders, who are likely to offer you favorable terms and conditions.

Before deciding whether to approve you for a loan (and at what rate), however, lenders will also look at your income, employment history, and debt-to-income ratio. You generally need a consistent and steady monthly income and a DTI ratio less than 36% to qualify for the best rates and terms on personal loans. Since most personal loans are unsecured, you don’t need any collateral (like a car or a home) for approval.

Once you qualify, a personal loan provides you with a lump sum of cash that can be used for virtually any purpose, including credit card consolidation, home improvements, and large purchases. You repay the loan (plus interest) in regular installments over the loan’s term, which can range anywhere from one to seven years.

Takeaway

IHaving a credit score of 740 means that you are a well-qualified borrower, with a very good credit history. A 740 credit score should allow you to be approved for credit cards, home mortgages, auto loans, and personal loans, often with favorable interest rates and terms.

However, a score of 740 is just narrowly within FICO’s range of “very good” and you will no longer be in that range if your score declines, even by a single point. If you manage your credit responsibly, however, you should be able to build on your already good credit score and unlock lending products with even better rates and terms in the future.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.