A 572 credit score is not great. It falls significantly below the national average credit score of 715 and is considered poor. Many lenders choose not to do business with consumers who have credit scores in this range.

But it’s not all bad news. You will be able to get a credit card or personal loan. Your interest rate may end up being higher. You may have to pay extra fees. Your credit limit or loan amount may be low and not come with the best terms, but you can still open new credit accounts and enjoy the benefits of borrowing.

In this post, we will look into what a credit score of 572 means, what products are available, and how building credit works.

Credit cards for a 572 credit score

Credit card issuers know that not everyone has a good score. That’s why plenty of them offer credit cards designed with credit building in mind. These cards have low minimum score requirements, making them easy to be approved for and report your credit activity to the credit bureaus. Knowing that how you use your card is being reported can be daunting, but it’s the only way your score will go up. Use your credit card responsibly; it can help you greatly.

Secured credit card

A secured credit card typically requires a security deposit – 100% refundable – but otherwise works just like any other card. This deposit ensures that the creditor won’t lose money if you fail to pay a bill and serves as your credit limit. Use your card responsibly, make regular on time payments and keep your usage low, and your score should improve. With a higher credit score you can qualify for an unsecured credit card with good terms. Make sure the lender reports your credit activity to all three credit bureaus – not all do.

Unsecured credit card

The unsecured credit cards you’ll qualify for will come with higher APRs (annual percentage rates), lower credit limits, and additional fees. They are usually more expensive than secured cards but don’t require a cash deposit upfront. If used responsibly, these cards can help have a positive impact on your credit score.

Store credit card

Store credit cards often have more lenient approval requirements, plus discounts and benefits for the issuing store. They, too, typically have high APRs and low limits. Additionally, they are closed-loop cards, meaning they can only be used at the one store – and maybe sister franchises. Even so, they can help you achieve a higher credit score.

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Does the number of open accounts you have impact your credit score?

The number of accounts you have matters, but not as much as how you handle them. According to Experian, Americans, on average, have 3.9 open credit card accounts. To get and maintain a good score, it’s recommended to have two to three credit cards plus other types of accounts (e.g., loans). Having too few accounts might not provide enough data to establish a strong credit history. Conversely, having too many can lead to high balances or missed payments. It’s essential to strike a balance.

What are the best personal loan options for someone with a 572 credit score?

With a low credit score, your personal loan options will be limited, but they do exist. The best places to look for a 572 credit score loan are online lenders, your local credit union, and cash advance apps.

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Many online lenders specialize in lending to people with poor credit scores. They’re able to do this because they consider other factors, such as income and employment stability, rather than your three-digit rating to approve the personal loan. Some lenders don’t even do a hard inquiry. The loan amount may be small, and it may have a short repayment period, but these loans do exist.

One way to find a bad credit personal loan is through online loan marketplaces. These online platforms connect consumers with lenders who consider all types of applicants. You submit one application and receive offers from multiple lenders. Then, compare the interest rates, fees, repayment terms, and loan amounts to find the best one for you. Once you’ve chosen a personal loan, submit an application with the direct lender. It’s a very simple process that lets you prequalify and compare offers with only one application.

If you prefer in-person service, visit a credit union. These member-owned institutions tend to offer loans with more flexible lending criteria, better terms, and lower interest rates to members with poor credit scores. Building a relationship with a credit union can enhance your financial options.

Another option is a paycheck advance from a cash advance app. These apps usually have little to no fees, no interest, and no hard pull. Many do ask for a tip, however, or a subscription fee. Tipping on a cash advance app is different from tipping wait staff. Don’t tip too much, or you’ll end up paying a very high APR. Cash advances via apps can be a good choice if you’re able to repay the money with your next paycheck and only need to borrow a small amount.

572 credit score car loan

Auto loans for poor credit exist, but you will have to find a specific lender and be prepared to pay a higher interest rate. Look for lenders who offer auto loans specifically to borrowers with poor credit scores. The exact requirements will vary among lenders. Many will consider your income, employment history, and debt-to-income ratio – basically, your ability to make timely payments – in addition to your score. A steady income, low debt levels, and a larger down payment can increase your chances of being approved for a car loan.

572 credit score mortgage

The average credit score needed to buy a house varies. Some lenders will be more willing to work with you if you can make a larger down payment since it reduces the lender’s risk. FHA loans are the most feasible option. Depending on the lender, you can be approved for an FHA loan with a score as low as 500. A lower score will require a larger down payment of 10% and come with higher interest charges. If you can raise your score 8 points to 580 your down payment requirement drops to 3.5%.

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Is 572 a bad credit score?

Is 572 a good credit score? A bad score? Unfortunately, a FICO score of 572 is considered poor. FICO credit scores from 300-579 are poor, whereas 670 or higher are good. For most financial institutions, a poor credit score indicates irresponsible consumer behavior or a lack of credit history. It may be the result of missed or late payments, a high credit utilization rate, credit card debt, or even bankruptcy.

FICO breaks credit scores into the following ranges:

  • Poor: 300-579
  • Fair: 580-669
  • Good: 670-739
  • Very Good: 740-799
  • Exceptional: 800- 850

Most consumers have credit scores ranging from 600 to 750. Only 16% of consumers have poor scores.

While a 572 score is poor, you don’t have a long way to go for it to move up to the next range and become fair. It may take a bit of work, but with some discipline and patience, you can improve your standing. A fair credit score will increase your borrowing options tremendously.

Understanding your credit score 572

Credit scores are three-digit numbers representing how likely you are to repay what you borrow. They are calculated by credit scoring models based on data financial institutions send to the major credit bureaus—Equifax, Experian, and TransUnion. The bureaus put the data in your credit reports and then run them through scoring models —FICO and VantageScore being the biggest. Your score then comes out on the other side.

The FICO credit scoring model determines your score based on the following factors (VantageScore is very similar):

  1. Payment history (35%): Record of your past payments
  2. Amount used (30%): The total amount of debt you owe and your credit utilization rate, which is the percentage of your limit you’re using.
  3. Length of credit history (15%): The age of your oldest account, the age of your newest account, and the average age of all your accounts.
  4. Credit mix (10%): A variety of accounts, such as credit cards, mortgages, and car loans.
  5. New inquiries (10%): The number of recently opened credit accounts and inquiries made by lenders.

Lenders use credit scores to gauge the risk of lending money to you. A higher score means you are more likely to make payments on time, making you a more attractive candidate for credit. Consequently, with a high score, you can expect lower interest rates, higher credit limits, and more favorable loan terms.

Conversely, a low FICO score like 572 limits your borrowing options. Lenders may offer smaller loan amounts at higher interest rates or require collateral or a co-signer to mitigate their risk. It will be difficult to get an unsecured credit card without a lot of fees and a high APR. In other words, having a low score may make it difficult and even expensive to borrow money.

The dos and don’ts of building credit

Credit scores are not permanent. They change based on your financial behavior. Start using credit responsibly and your score will shoot up. It won’t happen overnight, but you can make progress fast.

Review your credit history

First look over your credit reports from each of the major credit bureaus – Equifax, Experian, and TransUnion. These reports contain the raw data used to calculate your score. You can get them for free once a year via annualcreditreport.com. Take note of mistakes you’ve made in the past or behaviors you need to correct. Make sure to check your credit report for inaccuracies and dispute any inaccurate negative marks.

Create a budget

Making a monthly budget isn’t a fun thing to do but it’s the best way to set yourself up for success. List your income and all monthly expenses, including debts, necessities (rent, groceries, etc.), and discretionary spending (eating out, streaming services). Allocate funds to each category, prioritizing essential expenses, debt repayment and savings. Knowing how much you have to spend each month can help you live within your means and avoid overspending, which in turn will increase your financial health.

Pay bills on time

The best thing you can do starting today is establish a positive payment history. Strive to pay all of your bills when due as late payments drag credit scores down fast. Set up autopay or payment reminders so that a bill never slips your mind.

Don’t max out your cards

A high credit card balance is definitely not your friend. It will make your utilization rate shoot up. It’s a good idea to use 30% or less of your available credit. Did you know that consumers with excellent credit scores use less than 10% of their limit? Try to move in this direction. One way to keep your utilization rate low is to pay bills throughout the month.

Closing old accounts isn’t always good

Tempting as it is, try not to close old credit card accounts. The exception is if they have lots of fees.

The reason being, a longer credit history contributes positively to your score. Closing an old account will shorten the length of time you’ve had accounts and so can hurt your credit score. Keep accounts open and active as much as possible.

Space out applications

Any time you apply for a new credit account the lender conducts a hard inquiry on your credit report which has a small negative impact on your credit score. While just one hard inquiry won’t do much damage, multiple inquiries in a short period will. So, space out applications by at least six months and only apply when you really need it.

Watch your credit mix

Your credit mix is the variety types of credit you have. This includes revolving credit accounts (credit cards) and installment (personal loans, car loans, etc.) This matters because in the eyes of financial institutions, it makes sense to have a mortgage, a car loan, and a card. But it doesn’t make sense to have ten cards and nothing else. It also shows lenders if you can handle different types of borrowing. While a mix can help your score, don’t go taking on debt you don’t need.

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Frequently asked questions

Building credit involves paying bills on time, reducing outstanding debt, and avoiding new credit inquiries. Consider using a secured card to build positive payment history. Regularly check your credit report for errors and dispute any inaccuracies.

Having a low credit score makes it harder to secure a large loan, but it is not impossible. You may be able to borrow anything from $1,000 to $50,000 with poor credit. The amount depends on your lender, type of loan, and other factors, including your employment status, income, and debt-to-income ratio.

Yes, it’s entirely possible to rent a house. Landlords consider other factors such as income, rental history, employment stability, and references when evaluating applications. Some don’t even look at your score. If they do, you may be asked to pay a larger security deposit or add a co-signer to be approved.

Bottom line

A 572 score is considered a poor. It will be difficult to secure loans or credit cards with decent terms. While there are financial institutions willing to work with consumers whose credit scores fall in this range they will charge high interest rates and add on fees.

The best thing you can do is to start raising your rating by paying down credit card debt, avoiding opening too many accounts, and making timely payments on all your bills. If you need help, reach out to a credit counselor. They can help you get out of debt, stay on budget, and improve your credit score. It takes time but is worth it. Be patient, you’re on your way to a better score! 

About the author

Rachel Alulis

Rachel Alulis has been the lead editor for Moneyfor’s credit cards team since 2015 and for the financial rewards team since 2023. Before joining Moneyfor, Rachel worked at USA Today and the Des Moines Register. She then established a successful freelance writing and editing business specializing in personal finance. Rachel holds a bachelor’s degree in journalism and an MBA.

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This content is general in nature and is provided for informational purposes only. MoneyFor is not a financial advisor and does not offer financial planning services. This content may contain references to products and services offered through MoneyFor marketplace.