570 falls within the “poor” FICO Score credit category, which ranges from 300 to 579.
Most financial institutions use the FICO credit scoring model to make approval decisions.
FICO Scores are separated into five distinct categories: poor, fair, good, very good, and excellent. The average credit score for 2023 was 715, which is considered “good.”¹ If you have a 570 score, you are well below the ideal credit score for a borrower.
Key Takeaways for a 570 Credit Score
Overview of Your
Credit Rating
570 is considered a poor credit score. If you have a score lower than 579, lenders consider you to be a subprime borrower. Subprime borrowers generally have late payments or excessive debt in their credit reports.
Borrowing Options With a
570 Credit Score
Poor credit scores indicate that you are a credit risk. Many subprime borrowers may struggle to qualify for unsecured loans. While it’s not impossible to get loan approval with poor credit, you will likely get subpar terms and rates.
Improving a 570
Credit/FICO Score
You can improve your poor credit score by using credit-building tools, such as secured credit cards and credit builder loans. It’s also helpful to reduce your outstanding credit card debt, maintain a good payment history, and limit your credit inquiries.
Is a 570 Credit Score Good?
A 570 credit score is not good, as it belongs to the “poor” credit range. Good credit scores range from 670 to 739 points. If you want good credit, you must improve your credit history over an extended period to gain 100 points. Improving a poor credit score is not impossible, but it does require time and continuous effort.
What Can I Get Approved For?
Upgrade
4.4 Trustpilot Rating
- Rewards checking
- Personal loans
- Upgrade OneCard
- Premier savings
Upgrade is a finance company that provides affordable and responsible credit products to borrowers in need. They offer spending cards and personal loans. Loans range from $1,000 to $50,000, and personal credit line cards range from $500 to $25,000.
Min Credit Score Depends on the Product You Choose
Consumer Credit Union
4.8 Ninja Star Rating
- Personal loans & auto loans
- Mortgages
- Credit cards
- Banking solutions
Like other credit unions, Consumers Credit Union is an open-to-the-public, not-for-profit institution. This credit union offers a wide range of products and services to members—checking, savings, debit and credit cards, vehicle and consumer loans, money market accounts and certificates.
Check out Their Website for More Information on Products and Services
Creditstrong
4.0 Ninja Star Rating
- Installment or revolving credit
- Flexible pricing
- Build credit history
- Build your savings
CreditStrong offers safe and secure solutions to help borrowers build credit. CreditStrong offers two different types of accounts: installment and revolving. These accounts are a combination of a savings account and either a secured installment loan or a secured revolving line of credit.
No Minimum Credit Score Required
These are some loan options available to borrowers with poor credit scores:
Personal Loans
A personal loan can provide an eligible borrower with emergency cash for small and large financial emergencies. Many borrowers use personal loans for home improvements, moving costs, car repairs, and paying medical debt. But if you have a poor credit history, you may only qualify for a small lump sum. The interest rates vary greatly, depending on the lender and your creditworthiness. But keep in mind that there are many online lenders that provide competitive rates.
Bank Loans
Banks provide a wide variety of loans, such as mortgages, lines of credit, and auto loans. Banks generally require applicants to have good credit and an active account. If your current score is lower than the average credit score, you may only be eligible for specific secured loans. Remember that while banks tend to offer decent rates, you may only qualify with a less-than-ideal APR if you have a low credit score.
Credit Cards
There are different types of credit accounts available, such as store cards, rewards cards, secured cards, and traditional unsecured cards. If you want an unsecured credit card, you may only qualify for store cards. A store card, or retail card, is a credit card that can only be used with a specific retailer. Store cards generally have more flexible approval rates because they are closed-loop cards with lower credit limits.
If you are looking to open new credit accounts, consider one of these card options:
- Capital One Walmart Rewards® Mastercard®
- TJX Rewards® Platinum Mastercard®
- Kohl’s Credit Card
- Amazon Prime Rewards Visa Signature Card
- Target REDcard™ Credit Card
- Lowe’s Advantage Card
Auto Loans
If you’re interested in applying for auto loans, you should know that low credit scores can impact the loan amount and annual percentage rate. You could qualify for sufficient money to get a used vehicle with a low FICO Score but be prepared for higher interest rates. Although a long repayment plan can conveniently reduce your monthly payment amount, you will end up paying substantial interest fees.
Products To Help Improve a 570 Credit Score
These are a few financial products that may help you improve a low credit score:
Credit Repair Companies
Enlisting the help of a credit repair company could help you improve your poor credit history. Credit repair companies are usually for-profit organizations that monitor credit reports and help consumers remove negative information for a monthly fee. However, these companies cannot remove accurate information; they can only dispute errors.
Many financial experts consider credit repair companies to be a waste of money because you can dispute inaccurate information yourself. Each of the major credit bureaus (TransUnion, Equifax, and Experian) provides one free report annually. If you notice an error, you can call the credit bureau directly or fill out an online dispute form.
Secured Credit Cards
A secured credit card is a credit card that requires collateral. If you want to improve bad credit and establish better spending habits, it may be worthwhile to apply for a secured credit card. Most credit card companies offer secured credit cards, but the rates and terms all differ.
These are some of the most popular secured credit card options:
- Chime Secured Credit Builder Visa® Credit Card
- Discover it® Secured Credit Card
- Capital One Quicksilver Secured Cash Rewards Credit Card
- OpenSky® Secured Visa® Credit Card
- First Progress Platinum Prestige Mastercard® Secured Credit Card
Automatic Payments
Signing up for automatic payments can help you avoid late monthly payments and fees. A long history of timely payments can improve bad FICO Scores over time. In contrast, late payments can appear on your credit report and decrease your credit score. If a payment is more than 30 days late, the lender can report it to the credit bureaus. A late payment will remain on your credit report for up to seven years and can hurt your credit for several months or years.
Benefits of Improving Your 570 Credit Score
These are some of the benefits you can look forward to getting once you have improved your credit score:
Quick Approval
Borrowers with high FICO Scores typically have more loan options other than personal loans for 500 credit score. When a borrower with a score higher than the average applies for funding, they are very likely to get approved. A high credit score indicates that someone has a proven track record of successfully managing their credit accounts and repaying their personal debt on time. If you significantly boost your credit score, you can get fast emergency cash from almost any lender.
Better Interest Rates
A good or excellent credit score can help you get the best rates on the market. A low-interest rate can significantly reduce the amount you pay to borrow money. Low rates mean lower monthly payments, which frees up your money for investing or saving.
Higher Credit Limits
A higher credit limit lowers your credit utilization ratio, which affects your FICO Score by 30%. A high credit limit means you can spend more money with your credit cards without negatively affecting your credit score. However, a high credit limit is generally only given to cardholders who manage their credit well and have sufficient income.
How To Improve Your 570 Credit Score
Here are a few financial tips to help you improve your poor credit score:
Avoid Late Payments
Your payment history is the most important factor for most credit scoring models. In fact, your payment history makes up 35% of a FICO Score. If you want to improve your credit score, it’s essential to avoid any late payments. If you have too many financial accounts and have trouble staying on top of multiple due dates, consider debt consolidation. A debt consolidation loan can simplify your debt repayment process so you avoid late payments.
Reduce Your Credit Card Debt
Reducing your credit card debt may greatly improve your credit scores and your mental health. According to a poll for the Financial Times, 28% of voters cited credit card debt as one of their biggest sources of financial stress.²
If you are struggling with too much credit card debt, you can use a debt repayment method, such as the debt avalanche or debt snowball method. You can also temporarily freeze credit card accounts to prevent yourself from making new purchases.
Limit New Inquiries
Applying for a new credit account can decrease your already low credit. When an applicant submits an application, they permit the lender to perform a hard credit check, which can deduct up to 10 points. Suppose you apply with four lenders for a potential line of credit. In that case, you can end up losing up to 40 points! If you want to improve your credit history, avoid new inquiries unless absolutely necessary.
Talk to a Credit Counselor
A credit counseling organization provides various financial services to consumers. This type of organization can help you organize your finances, establish a debt repayment plan, and start budgeting. If you feel overwhelmed by your financial situation, talking to a credit counselor may help you start off on the right foot.
While there are for-profit credit counseling services, there are also high-rated nonprofit options, such as:
- Accredited Debt Relief
- Freedom Debt Relief
- National Debt Relief
FAQs About 570 Credit Scores
How does a 570 credit score affect my ability to get a car loan?
With a bad credit score, securing a car loan is still possible, but it may come with higher interest rates and require a larger down payment. Lenders view lower credit scores as a higher risk, which affects the loan terms they offer. Improving your credit score before applying or exploring options with lenders who specialize in loans for those with less-than-ideal credit histories can be beneficial.
Can payday loans impact my 570 credit score?
Payday loans don’t always affect your credit score directly since many payday lenders don’t report to credit bureaus. However, it’s crucial to consider the implications of payday loans on your overall financial health, as they are known to have predatory terms. According to a Center for Responsible Lending study, 46% of borrowers default on a payday loan within their first two years of borrowing.³
What's the fastest way to improve my credit score from 570?
Improving your credit score is a process, but some quick steps can help. Start by checking your credit report for errors and disputing any inaccuracies with the credit bureaus. Pay down high credit card balances to lower your credit utilization ratio and ensure all bills and loans are paid on time. These actions can gradually improve your credit score, reflecting a more responsible credit history.
How often do credit bureaus update credit scores, and when will I see improvements?
Credit bureaus typically update credit reports monthly, but this can vary depending on when creditors report your account activity. If you’re taking steps to improve your credit scores, such as paying down debt or correcting inaccuracies, you might begin to see improvements in a few months. However, significant changes, especially in rebuilding credit history, can take longer to reflect.
Are there specific credit cards designed to help someone with a 570 credit score?
Yes, there are credit cards specifically designed for individuals with lower credit scores, including secured credit cards. These cards require a security deposit that serves as your credit limit and is a great tool for building or rebuilding credit. By making small purchases and paying off the balance in full each month, you can start to improve your credit score, demonstrating to lenders that you’re a responsible borrower.
What Interest Rate Can I Get With a 570 Credit Score?
Low credit scores generally get higher rates on all loan products. A low credit score indicates that the consumer has a subpar credit history. Consumers with “poor” credit scores may have delinquencies, late payments, excessive debt, or bankruptcy on their credit reports. When there is a potential risk of the borrower failing to repay their debt, the lender will charge higher rates to lower the lending risk. Working on improving your credit score can help you secure lower rates in the future.
Can I Buy a House With a 570 Credit Score?
It is still possible for borrowers with low credit scores to buy a house. There are various non-conforming loan options for borrowers who have low to moderate income and bad credit scores. But keep in mind that rates may still be less-than-ideal.
If you are thinking about becoming a homebuyer, take a look at the comparison chart below to find your ideal mortgage loan.
| Feature | FHA Loans | VA Loans | USDA Loans |
|---|---|---|---|
| Eligibility | Anyone who meets the criteria | Veterans, active military, and certain military spouses | Low- to moderate-income buyers in rural areas |
| Down Payment | As low as 3.5% | No down payment required | No down payment required |
| Mortgage Insurance | Required; upfront and annual premiums | No mortgage insurance, but a funding fee is required | No mortgage insurance, but a guarantee fee is required |
| Credit Score Requirements | Typically 580+ for 3.5% down; lower scores require more down payment | Varies by lender, often 620+ | Varies, typically 640+ for streamlined processing |
| Loan Limits | Yes, varies by county | Yes, varies by county but can be higher than FHA limits | Yes, varies by area |
| Property Requirements | Must meet HUD guidelines | Must be for primary residence and meet VA standards | Must be in a rural area as defined by USDA and be modest in size, design, and cost |
| Use | Primary residences only | Primary residences only | Primary residences only |
| Interest Rates | Competitive, may be lower with good credit | Competitive, often lower than conventional rates | Competitive, sometimes subsidized for very low-income applicants |
Disclaimer: This table provides a general overview. Specific details can vary based on the lender, the borrower’s financial situation, and changes in government policy. Always consult with a lender or financial advisor for the most current information and to determine which loan best suits your needs.
