A 590 credit score falls within the “fair” credit category.
590 is towards the bottom of this credit tier, so consumers should prioritize improvement to avoid falling into the “bad” credit category.
Unfortunately, consumers with fair credit scores on the lower end are often considered a high lending risk to most financial institutions. Thankfully, there are tactics consumers can utilize to start improving their credit history and eventually access better loan deals.
Here, we’ll learn about 590 credit scores, how to navigate the financial world with this kind of credit score, and what consumers can do to improve their financial situation.
Key Takeaways for a 590 Credit Score
Overview of Your
Credit Rating
590 is on the lower end of the “fair” credit score category. Consumers with this score should definitely prioritize improvement.
Borrowing Options With a
590 Credit Score
Some personal loans may be difficult to come by. Other loans, like payday loans, may be easier to access but should be cautiously used.
Improving a 590
Credit/FICO Score
Consumers can improve their credit score by making payments on time, lowering their debt and credit utilization rate, and avoiding new credit inquiries.
Is a 590 Credit Score Good?
590 isn’t exactly a good credit score. In fact, 590 is towards the bottom of the “fair” credit range, which includes all scores between 580 and 669. Scores between 670 and 739 are considered good credit, scores between 740 and 799 are considered very good credit, and scores between 800 and 850 are considered excellent credit.
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
With a 590 credit score, some loan products you may come across when looking for a loan are:
Personal loans typically come in the form of installment loans, where borrowers receive one lump-sum payment and repay the balance in monthly installments. Personal loan products also come in many different forms, including short-term and long-term loans, as well as bad credit loans.
Bank Loans
Personal loans from a bank may come in the form of variable or fixed-rate loans. However, banks typically only work with people who have a great credit history, so approval may be difficult with a 590 credit score. Instead, consider a personal loan from a credit union or other private lenders who specialize in working with people with a lower credit score.
Unsecured Credit Cards vs. Secured Credit Cards
While consumers with fair credit may be able to get approved for a traditional credit card, they most likely will have a low credit limit and higher interest rates. Unsecured credit cards can also lead to unaffordable credit card debt when used irresponsibly. As of the end of 2023, American consumers have accumulated $1.13 trillion in credit card debt.1
Instead, bad or fair credit consumers may want to consider a secured credit card. With secured credit cards, the credit limit is backed up by a security deposit, and account holders may not spend more than their initial limit.
Car Loan
A car loan is a kind of installment loan designed to assist people in buying a new or used vehicle. With a 590 credit score, low-interest rates may be hard to come by with most auto loan products. To help lower the cost of this type of loan, bad credit consumers may want to ask someone with a higher FICO Score to cosign their loan along with them.
Title Loans
Title loans are a type of secured loan that uses the borrower’s vehicle title as collateral. Since title loans are secured, people with less-than-perfect credit are often able to get approved for decent loan amounts. However, if the borrower misses payments or defaults on their loan, they risk losing their vehicle!
Payday Loans
Payday loans are a type of cash advance loan that are meant to help people access cash while in between paychecks. Given their purpose, payday loans usually have very short repayment terms, about fourteen days. People who fail to repay their payday loan within about two weeks risk being hit with extremely high-interest rates, making repayment even more difficult.
Products and Tools To Help Improve a 590 Credit Score
Budgeting Apps
Organizing your finances into a budget can make a world of difference when it comes to improving your credit score. Some popular budgeting apps you can start using today are:
- GoodBudget: Perfect for beginners to budgeting
- PocketGuard: Helpful for consumers who want to watch spending habits
- HoneyDue: Best for couples or people who are splitting expenses
- Empower: Good for people who want to invest
- Simplifi by Quicken: Great for setting financial goals
- YNAB (You Need a Budget): Designed for people who want a detailed budgeting system
Credit Report Monitoring
| Credit Monitoring Service | Three Major Credit Bureaus Monitored | Identity Theft Protection? | Credit Score & Reports | Alerts | Price Range |
|---|---|---|---|---|---|
| Experian | Experian | Yes | Monthly reports & scores | Email, App | Free – Premium options available |
| Privacy Guard | Equifax, Experian, TransUnion | Yes | Daily reports & scores | Email, phone | Subscription required |
| Credit Karma | Equifax, TransUnion | Yes | Instant reports & scores | Email, App | Free |
| IdentityForce | Equifax, Experian, TransUnion | Yes | Instant alerts, reports & scores | Email, Phone, App | Subscription required |
| Experian IdentityWorks℠ | Equifax, Experian, TransUnion | Yes | Monthly reports & scores | Email, SMS, App | Subscription required |
Disclaimer: These services vary in terms of coverage, features, and cost, catering to a wide range of consumer needs.
Credit Repair Companies
For personalized assistance, you may consider working with a credit repair company. Some popular services include:
- Credit Saint
- Safeport Law
- Sky Blue Credit
- The Credit Pros
- Lexington Law
Benefits of Improving Your 590 Credit Score
Improving your credit score isn’t always easy, but it’s worth it. Check out some of the benefits you can enjoy when you have a better credit history below.
Approval For More Loan Products
Borrowers with good credit are considered low lending risks, which means quick and easy approval on tons of loans. Furthermore, lenders often send special loan and credit offers to consumers who meet their minimum credit score requirements.
Lower Interest Rates
Since lenders have a high likelihood of receiving a return on their investment when they lend to good credit borrowers, they are often willing to lend at lower rates to people with good credit.
Higher Credit Limit
Not only can you secure lower interest rates when you have good credit, but you’ll be able to get more cash too. Creditworthy borrowers are often trusted with higher funding amounts on loans and credit cards.
How to Improve Your 590 Score
Know How Your Credit Report Works
Your credit report is broken down into five categories, each contributing a certain percentage to determine your overall credit score. Those categories include:
- Payment history (35% of credit score)
- Debts (30% of credit score)
- Length of credit history (15% of credit score)
- Credit mix (10% of credit score)
- New credit account inquiries (10% of credit score)
Being familiar with these categories can help you pick out which of your financial habits are working towards or against your goal of improving your credit.
Stay Current With Your Monthly Payments
Staying current with payments on your debts and bills is going to be essential if you want to improve and maintain your credit score. In fact, just one late or missed payment on a personal loan has the potential to affect your credit score for up to seven years! To avoid being late or missing payments, you can either set payment reminders on your phone or computer or sign up for automatic payments.
Avoid Applications for New Credit Accounts
As you work on improving your credit score, try to avoid applying for new loans or lines of credit. Instead, focus on repaying your debts and staying on top of those payments.
FAQs About 590 Credit Scores
Can joining a credit union help improve a 590 credit score?
Joining a credit union can offer personalized financial advice and products tailored to help improve your credit score, often with lower fees and interest rates than traditional banks.
How does closing an old credit account affect a 590 credit score?
Closing old credit accounts can shorten your credit history and increase your credit utilization ratio, potentially lowering your score. It’s often better to keep them open and active.
Can disputing credit report errors impact a 590 credit score?
Yes, disputing and correcting errors on your credit report can improve your score. Regularly check your credit report for inaccuracies and report them to the credit bureaus.
Is it easier to get a secured personal loan with a 590 credit score?
Secured personal loans, backed by collateral, may be easier to obtain with a 590 credit score, potentially offering lower interest rates than unsecured loans. However, the risk is that if you default on the loan, you could lose the asset used as collateral.
What Interest Rate Can I Get With a 590 Credit Score?
Unfortunately, with a 590 credit score, low-interest rates will be hard to come by. The best way to get better interest rates on personal loan products and other loans is to improve your credit score.
Can I Buy a House With a 590 Credit Score?
Purchasing a home is almost always complicated, especially if you are working with a lower credit score. Fortunately, there are special government programs that specialize in providing mortgage loans to low-credit consumers, such as FHA loan programs.
According to FHA.com, the minimum credit score required for a mortgage loan with a 3.5% minimum down payment is 580.2 With a 590 credit score, you just meet that requirement! Other qualifications include:
- MIP (Mortgage Insurance Premium)
- Debt-to-Income ratio must be below 43%
- The home being purchased must be the borrower’s primary residence
- Borrowers must have a steady income as well as proof of employment
