What does a 578 credit score mean

A 578 credit score is well below the average credit score and can be a sign of past financial mistakes or a limited history. Whatever the reason, it can make it difficult to get a personal loan or card that doesn’t require collateral or a security deposit.

It’s not all doom and gloom. There are options when you have a 578 credit score. Some lenders have very low minimum credit score requirements and will consider – even approve – your application. Even better, you can improve your score.

Let’s go over what a 578 credit score means, what financing options are available, and what you can do to improve it.

Popular credit cards for a 578 credit score

As 578 is not a good credit score, you may find it difficult to be approved for a card. Your two main choices will be secured cards or unsecured cards for poor scores. Both can be used effectively to raise your rating.

A secured credit card requires a security deposit – 100% refundable – that typically sets your limit. Since it requires a deposit, it is very easy to be approved for. Make sure the card issuer reports payments to all three major bureaus.

An unsecured card does not need a deposit. Ones for poor ratings though will come with smaller limits, higher interest rates, and lots of fees like an annual fee. Use the unsecured card responsibly to improve your score and move on to a less expensive card.

A few popular unsecured card options for a 578 score are:

Click here for even more credit cards!

Can’t wait to improve your score?

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Can you get a loan with 578 credit score?

Yes, you can get a loan with a 578 score, but your options will be limited. Different lenders consider other factors so you still may qualify. Personal loans will come with unfavorable loan terms with higher interest payments. Auto loans and home loans will be tough to secure. If you do get an auto loan, the lender will likely require a higher down payment and higher interest rate.

Go to MoneyFor to learn more about your score.

Number of open accounts by credit score range

Score Range	Average Number of Open Accounts
750-850	3
700-749	4
640-699	4
300-639	4

Data from Credit Karma

As you can see in the chart, having multiple credit accounts is good, but consumers with the highest ratings have fewer accounts than those with the lowest ratings.

What are the best personal loan options for someone with a 578 credit score?

Getting a personal loan with a 578 rating can be challenging.

Many lenders will not accept applicants with poor FICO scores. Those that do will consider other factors like your income and employment history. Even if you qualify, you will likely have stricter loan terms and be required to pay more in fees or interest payments.

Your best bet is to try online loan marketplaces. These marketplaces connect you with different lenders who approve personal loans for applicants with low ratings. You’ll receive offers and can compare loan terms to make sure you get the one with the lowest interest rate.

Another option is a paycheck advance app that sends you a portion of your earnings early. These apps typically have no hard pull, no interest, and little to no fees. They are a good option if you need a small amount of cash fast.

Mortgages and home loans with a 578 credit score

Obtaining a mortgage or home loan with a 578 score can be particularly difficult, as this rating is below the minimum requirement set by most lenders. Start by exploring FHA loans, which are more forgiving of lower FICO scores and require smaller down payments. Even with FHA loans, you should be prepared for higher interest rates and possibly additional insurance costs.

What does it mean to have a 578 credit score?

Your score is more than just three numbers. It plays a key role in determining what personal loans and cards you qualify for and with what terms. Scores – including FICO scores – typically range from 300 to 850. If your rating falls below 670 it is considered bad by the majority of lenders.

Lenders use your rating to assess risk. A higher score means you’re more likely to repay as agreed while a lower one shows a higher risk of default or being very late on a debt payment.

A poor score indicates a poor payment history full of late or missed payments, debt payments more than 90 days late, a high balance, or bankruptcy. Low FICO scores make it difficult to qualify for personal loans, auto loans, home loans, or unsecured cards that don’t have high interest rates and extra fees. It will be tough to secure a card with a high credit limit or any type of car loan.

Afraid your score might not be enough?

Find out the score required to get a credit card.

578 credit score: Is it good or bad?

578 is a bad credit score. This score falls in the poor category – the lowest on the FICO scale – but is only two points away from being in the fair range.

FICO scores are broken down into the following five ranges:

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

When you have a lower rating, understanding what goes into calculating your score is the first step to improving it. The three major credit bureaus – Equifax, Experian, and TransUnion – collect information from financial institutions and put this data into your reports. They then run these reports through scoring models and your ratings some out the other side.

Let’s take a closer look at what impacts your score and what data you want on your report.

What makes an impact on your credit scores

How you repay what you borrow impacts your score. The main factors used to calculate your rating are:

Payment history
Amount used
Length of time you’ve had accounts
Mix of accounts
New inquiries

Wondering how to get started on raising your rating?

You can easily build credit with a credit card!

Payment history

A positive payment history is the best thing you can do for your score. Making timely payments on all accounts – an auto loan, personal loan, and card – shows lenders that you can be trusted. Late payments and missed payments will drag your rating down.

Amount used

Your balance vs. what is available is your utilization rate. Lenders do not want you to be reliant on them. Ideally, your utilization rate will be below 30% of your limit.

Length of credit history

How long you’ve had open accounts matters. Lenders want to see more data, so the longer the average age of your accounts the better.

Mix of accounts

Lenders want to see that you can handle different types of borrowing and debt payment responsibly. They would like you to have a mix of types of accounts – personal loans, an auto loan, and cards.

New inquiries

When you apply for new personal loans or cards the lender or financial institution will conduct a hard inquiry. This will cause your rating to drop temporarily. Once you open the account, the average age of your accounts will also drop. Be strategic about applying for new accounts.

Dealing with a poor score?

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How to improve your 578 credit score

When you have a 578 score you’re only a few steps away from a fair rating but have a long way to go for a good score. Take it one step at a time, and you’ll see your 578 score improve. It won’t happen overnight, but with consistent effort, you will get there.

Get your credit report

The first step is to check your report. You can get a free copy of your report from AnnualCreditReport.com. Look it over and see what mistakes you’re making.

Don’t let your credit card balances balloon

If you’ve dealt with debt, you know that carrying a high balance can lead to hefty interest charges. Did you also know that it can hurt your rating?

A higher balance means a higher utilization rate. You want to keep your utilization below 30% of your limit. Less is even better.

Low usage is easier said than done. A few tips are to pay off your whole balance every month or to make multiple payments throughout the month.

Make timely payments

Pay all your bills on time and in full. Do everything you can to make debt payments and avoid late payments.

Think carefully before closing old credit card accounts

Closing an old account may seem like a good idea but it can actually hurt your rating. Open accounts will increase the average age of your history, your total limit, and add to your mix. All of which can help you improve your rating.

As long as you don’t pay an annual fee, you’re likely better off keeping accounts open.

Don’t apply for too many new credit cards at the same time

A hard inquiry typically occurs when you apply for a new card or loan. One isn’t a big deal, but multiple hard inquiries in a short period signals that you’re a risky borrower. Wait at least six months between applications to prevent this.

Are there too many negative marks on your credit report to tally?

See if a credit repair company can fix your issues!

Bottom line

With a 578 rating you will find it difficult to be approved for personal loans, auto loans, or cards with low fees. The good news is, your FICO score falls very close to the fair range. Establish a positive payment history by making timely payments and keeping your usage low and your score will increase. As your rating rises, so will your chances of being approved for less costly loans and better cards.

1. Paycheck Advance is For eligible customers only. Your actual available Paycheck Advance amount will be displayed to you in the mobile app and may change from time to time. Conditions and eligibility may vary and are subject to change at any time, at the sole discretion of Finco Advance LLC, which offers this optional feature. Finco Advance LLC is a financial technology company, not a bank. Expedited disbursement of your Paycheck Advance is an optional feature that is subject to an Instant Access Fee and may not be available to all users. Expedited disbursements may take up to an hour. For more information, please refer to Paycheck Advance Terms and Conditions. Current is a financial technology company, not an FDIC-insured bank. FDIC insurance up to $250,000 only covers the failure of an FDIC-insured bank. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply. Banking services provided by Choice Financial Group, Member FDIC, and Cross River Bank, Member FDIC. The Current Visa® Debit Card issued by Choice Financial Group, and the Current Visa® secured charge card issued by Cross River Bank, are both pursuant to licenses from Visa U.S.A. Inc. and may be used everywhere Visa debit or credit cards are accepted. Current Individual Account required to apply for the Current Visa® secured charge card. Independent approval required. Faster access to funds is based on comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Direct deposit and earlier availability of funds is subject to timing of payer’s submission of deposits.

2. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group, Member FDIC, and Cross River Bank, Member FDIC. The Current Visa® Debit Card is issued by Choice Financial Group pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. The Current Visa® secured charge card is issued by Cross River Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your Card for its issuing bank. Current Individual Account required to apply for the Current Visa® secured charge card. Independent approval required.

3. Individual results may vary. Using your credit card responsibly may allow you to improve your credit score. Credit building depends on various factors, including your payment history, credit utilization, length of credit history, and other financial activities.

4. Faster access to funds is based on comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Direct deposit and earlier availability of funds is subject to timing of payer’s submission of deposits.

5. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group. Funds held in Savings Pods are FDIC-insured on a pass-through basis up to $250,000 at our partner bank Choice Financial Group, member FDIC

6. Paycheck Advance is For eligible customers only. Your actual available Paycheck Advance amount will be displayed to you in the mobile app and may change from time to time. Conditions and eligibility may vary and are subject to change at any time, at the sole discretion of Finco Advance LLC, which offers this optional feature. Finco Advance LLC is a financial technology company, not a bank. Expedited disbursement of your Paycheck Advance is an optional feature that is subject to an Instant Access Fee and may not be available to all users. Expedited disbursements may take up to an hour. For more information, please refer to Paycheck Advance Terms and Conditions.

7. Actual overdraft amount may vary and is subject to change at any time, at Current’s sole discretion. In order to qualify and enroll in the Fee-Free Overdraft feature, you must receive $500 or more in Qualifying Deposits into your Current Account over the preceding 30-day period. For more information, please refer to Fee-free Overdraft Terms and Conditions.

8. You may earn Points in connection with your everyday spending and by completing other actions that Current designates as subject to the Current Points Program. The amount of Points granted for different actions as well as the purchase requirements necessary to earn Points will vary, and is subject to Current’s sole discretion. After qualifying, please allow 3-5 business days for points to post to your Current account. The Current Points program is not available to Teen Account holders. See Current Points Terms and Conditions.

9. Some fees may apply, including out of network ATM fees of $2.50 per transaction, late payment fees of 3% of any total due balance outstanding and past due for two or more billing cycles, foreign transaction fees of 3% of the full transaction amount (minimum $0.50), card replacement fees per card of $5 for regular delivery and $30 for expedited delivery, cash deposit fees of $3.50 per deposit, and third party processing fees.

10. Boost Bonuses are credited to your Savings Pods within 48 hours of enabling the Boost feature and on a daily basis thereafter, provided that the Savings Pod has accrued a Boost Bonus of at least $0.01. The Boost rate on Savings Pods is variable and may change at any time. The disclosed rate is effective as of August 1, 2023. Must have $0.01 in Savings Pods to earn a Boost rate of either 0.25% or 4.00% annually on the portion of balances up to $2000 per Savings Pod, up to $6000 total. The remaining balance earns 0.00%. A qualifying direct deposit of $200 or more is required for 4.00%. No minimum balance required. For more information, please refer to Current Boost Terms and Conditions.

11. Cryptocurrency services are powered by Zero Hash LLC and Zero Hash Liquidity Services LLC, and may not be available in all states. Terms and conditions apply. When you buy or sell cryptocurrency, a difference between the current market price and the price you buy or sell that asset for is called a spread. However, unlike most other exchanges Current does not charge an additional trading fee. Cryptocurrency transactions are a form of investment, and all investments are subject to investment risks, including possible loss of the principal amount invested. Cryptocurrency is not insured by the FDIC or any other government-backed or third-party insurance. Your purchase of cryptocurrency is not a deposit or other obligation of, or guaranteed by, Choice Financial Group or Cross River Bank. The cryptocurrency assets in your Zero Hash account are not held at Current, Choice Financial Group, or Cross River Bank. Current, Choice Financial Group, and Cross River Bank are not responsible for the cryptocurrency assets held in any Zero Hash account. Neither Current, Choice, nor Cross River Bank is involved in the purchase, sale, exchange of fiat funds for cryptocurrency, or custody of the cryptocurrencies. Terms and Conditions apply (platform and user agreements). Crypto on Current is not currently available in HI. Licensed to engage in Virtual Currency Business Activity by the New York State Department of Financial Services. This does not constitute investment advice.

12. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group. Your money is FDIC-insured on a pass-through basis up to $250,000 at each of our partner banks, Choice Financial Group and Cross River Bank, members FDIC.

13. Average value based on Fine Hotels + Resorts bookings in 2023 for stays of two nights. Benefits include daily breakfast for two, room upgrade upon arrival when available, $100 amenity, guaranteed 4PM late checkout, and noon check-in when available. Certain room categories not eligible for upgrade. $100 amenity varies by property. Actual value will vary based on property, room rate, upgrade availability, and use of benefits.

14. Up to $500 per Covered Trip that is delayed for more than 6 hours; and 2 claims per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

15. The maximum benefit amount for Trip Cancellation and Interruption Insurance is $10,000 per Covered Trip and $20,000 per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

16. Baggage Insurance Plan coverage can be in effect for Covered Persons for eligible lost, damaged, or stolen Baggage during their travel on a Common Carrier Vehicle (e.g. plane, train, ship, or bus) when the Entire Fare for a ticket for the trip (one- way or round-trip) is charged to an Eligible Card. Coverage can be provided for up to $2,000 for checked Baggage and up to a combined maximum of $3,000 for checked and carry-on baggage, in excess of coverage provided by the Common Carrier. The coverage is also subject to a $3,000 aggregate limit per Covered Trip. For New York State residents, there is a $2,000 per bag/suitcase limit for each Covered Person with a $10,000 aggregate maximum for all Covered Persons per Covered Trip. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

17. Car Rental Loss and Damage Insurance can provide coverage up to $75,000 for theft of or damage to most rental vehicles when you use your eligible Card to reserve and pay for the entire eligible vehicle rental and decline the collision damage waiver or similar option offered by the Commercial Car Rental Company. This product provides secondary coverage and does not include liability coverage. Not all vehicle types or rentals are covered. Geographic restrictions apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.

18. Coverage for a Stolen or damaged Eligible Cellular Wireless Telephone is subject to the terms, conditions, exclusions, and limits of liability of this benefit. The maximum liability is $800, per claim, per Eligible Card Account. Each claim is subject to a $50 deductible. Coverage is limited to two (2) claims per Eligible Card Account per 12 month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

19. When an American Express® Card Member charges a Covered Purchase to an Eligible Card, Extended Warranty§ can provide up to one extra year added to the Original Manufacturer’s Warranty. Applies to warranties of five (5) years or less. Coverage is up to the actual amount charged to your Card for the item up to a maximum of $10,000; not to exceed $50,000 per Card Member account per calendar year. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

20. Purchase Protection is an embedded benefit of your Card Membership and requires no enrollment. It can help protect Covered Purchases made on your Eligible Card when they’re accidentally damaged, stolen, or lost, for up to 90 days from the Covered Purchase date. The coverage is limited to up to $10,000 per occurrence, up to $50,000 per Card Member account per calendar year. Coverage Limits Apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

21. Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.

22. The secured Chime Credit Builder Visa® Card is issued by Stride Bank, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted.

23. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted.

24. The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.

25. There’s no fee for the Chime Savings Account. Cash withdrawal and Third-party fees may apply to Chime Checking Accounts. You must have a Chime Checking Account to open a Chime Savings Account.

26. To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.

27. Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.

28. Based on a representative study conducted by Experian®, members who made their first purchase with Credit Builder between June 2020 and October 2020 observed an average FICO® Score 8 increase of 30 points after approximately 8 months. On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score.

29. On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.

30. Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.

31. SpotMe® on Debit is an optional, no fee overdraft service attached to your Chime Checking Account. To qualify for the SpotMe on Debit service, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account each month and have activated your Visa debit card. Qualifying members will be allowed to overdraw their Chime Checking Account for up to $20 on debit card purchases and cash withdrawals initially but may later be eligible for a higher limit of up to $200 or more based on Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Debit limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime’s sole discretion. Although Chime does not charge any overdraft fees for SpotMe on Debit, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe on Debit will not cover any non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. SpotMe on Debit Terms and Conditions.

32. Tipping or not tipping has no impact on your eligibility for SpotMe®.

33. Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.

34. Save When I Get Paid automatically transfers 10% of your direct deposits of $500 or more from your Checking Account into your savings account.

35. Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up from your Chime Checking Account to your savings account.

36. Mobile Check Deposit eligibility is determined by Chime in its sole discretion and may be granted based on various factors including, but not limited to, a member’s direct deposit enrollment status.

37. Funds are automatically debited from your Checking Account and typically deposited into the recipient’s Checking Account within seconds. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed.

38. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed. Non-Chime members must use a valid debit card to claim funds.

* EarnIn is not available for Connecticut residents

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.

Related scores

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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.

What does a 578 credit score mean?