A 633 credit score is considered slightly below average and is categorized in the “fair credit score” group. Despite the fact that you are not in the poor score category, there is still so much room for growth, and you should take advantage of it. Think of your score as a stepping stone to bigger...
You’re reviewing your credit report and see that you have a 590 credit score — where should you go from here? You have come to the right place for learning about what your credit score means, and how you can better position yourself towards financial freedom! This article will walk you through what that means in relation to all of the other scores you could have. It will also explain how your 590 FICO score will affect you when attempting to secure different types of financing. If you want to learn more about your current situation, and where you should go from here, read on!
- Is 590 a good credit score?
- Credit cards for a 590 credit score
- Car loan rates for a 590 credit score
- Personal Loan With a 590 Credit Score
- Getting Mortgages with a 590 Credit Score
- How to Improve a Credit Score of 590?
Is 590 a good credit score?
Scores can range anywhere from 300 to 850. The national average sits slightly below the 700 mark by a few points. However, this changes from month to month and year to year. Generally, if you fall somewhere around it, you are considered to have good enough credit. Anything above it is great, and anything below it is poor. If you hit below 550, you are considered to be in a pretty bad situation.
Having a credit score of 590 is not great, or even good. In fact, it can end up limiting you in a lot of ways. If possible, it would be in your best interest to try and at least break into the 600s. That being said, there will be more information on how to do this later. All that you need to know at this point is that while this number is not the worst-case scenario, it definitely is not optimal.
Credit cards for a 590 credit score
What is the best credit card for a 590 credit score? There is no perfect answer to this question, as it will depend on your unique situation. For example, factors like the percentage of your liquid assets, how old you are, and what your future goals are. Generally, though, the three following credit cards for a 590 score should be good for you.
The above card has a 4.8/5 star rating for a reason. There are so many additional perks that come along with choosing this option. For starters, you can see if you qualify for the card without having to incur a hard inquiry on your credit report, which would reduce your score further. It does not have any annual fees, and you get 5% cashback on many of your everyday purchases. And, you can get double the amount of cashback that you earn during your first year of ownership!
Petal 1 Visa
Petal 1 understands that having a card is essential these days, just like getting a 590 credit score mortgage or auto loan. That’s why they make themselves available to people in your situation! Its limits can range from a minimum of $500 to a maximum of $5,000 depending on your credentials. It also does not have an annual fee. And, when using it, you can get anywhere from 2% to 10% cashback on your purchases. All of this is in exchange for a slightly higher APR — to be expected when you are trying to get car loans for a 590 credit score.
Journey Student Rewards from Capital One
The world of credit reports is slightly different if you are a student that is pursuing some form of higher education. Organizations know that American students are being overcharged for their education and do not always have the resources available to keep their credit accounts clean. That is why they make this card available to you, even when you have a low score, and provide you with 1.5% cashback on everyday purchases. And, it comes with a starting 0% APR. It does not have an annual fee and is enjoyed by both newbies and long-term credit users alike.
Car loan rates for a 590 credit score
When trying to secure a car loan with a 590 credit score, you will quickly discover that there are companies out there that will be trying to scam you. These entities will be banking on the fact that because you have a below-average score, you must not be financially savvy, and therefore, easy to milk some quick cash out of. Therefore, it is important that when you are sorting through car loan interest rates with a 590 credit score, you know what type of numbers you should be expecting to see.
The following chart provides you with some rough estimates of what you should consider good deals. If someone is trying to offer you a rate that is super far away from any of the following numbers, you should run away and in the direction of a better offer. Keep in mind though, that you cannot be expecting to see numbers you like. After all, lenders offer higher interest rates for 590 credit scores.
Personal Loan With a 590 Credit Score
Getting a personal loan will be easier than getting one for a residence, and equally as hard, if not a bit harder as getting one for an automobile. At some point, it will boil down to a few things, including but not limited to:
- How good you can sell yourself to your loaner;
- What you are trying to get the financing for;
- What specific types of negative marks your credit history portrays; and
- The industry that your income comes from.
If your paychecks are reliable and you are seeking funding for a genuinely important reason, it should not be too difficult to get a fair break on the rates for what you need. However, it is crucial to keep in mind that the larger the sum of money you are seeking is, the higher the interest rates are going to be.
How large of a loan can you get approved for with a 590 credit score? In some ways, it depends on how crafted your strategy is. Generally speaking though, you’ll have better luck with loans for four-digit numbers or less. Entities may also consider what the loans are for before giving you one. Therefore, only seek loans for essentials that entities will deal worthy of lending you money for.
Getting Mortgages with a 590 Credit Score
Most people have heard of mortgages. However, not everyone may be aware of their chances of getting a mortgage for a home or apartment with a 590 credit score. Mortgages are the deals that you can make with financiers where you can get funding in exchange for the promise that they can take your house from you if you fail to meet your end of the deal. For people who have no problem paying for things on time, this is likely a great option due to potential tax benefits. However, if you are trying to get a home loan with a 590 credit score, you may want to think twice.
When getting a loan with a 590 credit score, you will have to get a non-qualified mortgage since your number is not high enough for conventional financing. Even if you were, you would be paying over 6% in interest and it wouldn’t be worth it. You could also look into getting an FHA loan with a 590 credit score. Both of these options would require large down payments of anywhere from 30-50% of the total price of the spot you are attempting to buy.
How to Improve a Credit Score of 590?
Whether you were floored when you saw the low number on your credit report or expected it to be where it was, you can take action to improve it. The following sections detail three different ways for you to see results that make you smile.
Improve Your Money Habits
Before trying to get a 590 credit score mortgage rate or FHA loan, you should try and do some work on your financial habits first. It is true that some people simply cannot help the situation that they are currently in. However, most of the time, having a low score is a combination of both a bad situation and bad money management.
If you are making avoidable mistakes, such as buying a new optional gaming console on credit when you know you won’t be able to pay it back on time, then sit down with yourself and make a budget. It is going to save you a lot of interest if you can work on cleaning up your credit report before seeking financing.
Dispute What You Can
Is a 590 a terrible credit score? Yeah, it’s pretty bad. But perhaps it is not entirely your fault. Get a copy of your credit report from the bureaus and comb through them. If you see negative marks that you know are incorrect, such as a line depicting that you missed a payment when you didn’t, then you can dispute that in a letter to the credit bureaus! Put together a challenge that includes:
- Your contact information;
- What negative mark you think is wrong;
- Physical evidence backing up your claim in an attachment.
It may take up to 30 days for you to hear back about your challenge. If it works, then the negative mark will be corrected and you’ll see the number in your credit report jump up. Remember that you should only challenge mistakes that were made on behalf of the bureaus, and not your own mistakes.
Bring In the Pros
Did just trying to look at your credit report nearly bring you to tears? Don’t worry — you are not alone! Most people do not understand terms and processes in the credit world. Fortunately, there are professionals that are paid to learn it all. If you are wondering how to increase your credit score from a 590, then one of the best ways is to stop trying to do it all on your own. Instead, bring in the assistance of an expert credit repair company.
Companies know all of the tricks that you can use to take advantage of and get better rates or bump your score up a few dozen. Due to the laws governing this business, remember that they are not allowed to make false advertisements. If they promise they can do it, then they can. Professionals have been dealing with frustrating credit reporting agencies for years and will help you fix your score once and for all.
Whether you do not have time to fight your credit report on your own, or you want to but can’t, bring in the help of a well-respected company such as Lexington Law, Credit Saint, or any of the other credit restoration services.
If you started out before reading this wondering if a 590 was a good credit score to buy a car or house, you should now have the answer to that question — no. However, falling into this FICO range will not leave you completely out of luck or options. You will be able to obtain financing, it will just be for higher rates, and with lower credit limits.
The best option for you would be to work on your personal economic habits and see if you can save up funding yourself while building your credit. Even if you could obtain financing with your current score, it would make more economic sense to wait until you were able to do so for cheaper. Remember that you do not have to do this on your own! Plenty of qualified professionals are on the other end of the phone waiting for you to reach out and ask for help.