A 580 credit score is considered bad credit. Your credit score determines whether you will qualify for credit cards and loans, and what interest rate you’ll pay if you do qualify.
The share of Americans who had scores between 500 and 599 was 14.6% in 2019, according to credit scoring company FICO.
Here’s how a score of 580 can affect your financial life.
You may have a hard time getting a loan or card
With a 580 score, you may have trouble qualifying for many financial products. Even if you are approved, you will have to pay the highest interest rates. You might also be charged more for car insurance, or be asked for deposits when opening utility accounts.
When your score is low, taking a little action goes a long way. Here are some quick ways to improve your credit.
Ways to work on your 580 credit score
You can try a few ways to build credit:
- Apply for a secured credit card. Unlike a regular credit card, this type of card is backed by a cash deposit.
- Go to a credit union for a credit-builder loan or secured loan. A credit-builder loan allows you to build your score and save up for a goal at the same time.
- If you know someone with a good credit score and long history, ask them to add you as an authorized user on their credit card.
- Follow good credit habits: Pay your bills on time and use 30% or less of the credit limit on all your credit cards. Those are the two biggest factors that affect your credit score.