A 590 credit score is not good. It is well below the national average of 715 and is generally considered subprime, but it won’t necessarily stop you from borrowing money. There are plenty of lenders out there willing to work with consumers who have low scores.
Generally speaking, any score above 670 is considered good. 590 falls into the fair category – scores from 580 to 669 are considered fair. According to Experian, 17% of Americans have ratings in this range. A fair score is a step up from poor credit but it is still a sign of past mistakes or a lack of credit history.
Let’s take a closer look at what a 590 credit score means, what cards and loans you’re likely eligible for, and how you can improve it to improve it.
Personal loans with a 590 credit score
You can get a loan with a 590 credit score, but it will not be the best offer out there. The good news is, that some lenders specialize in subprime lending and are willing to work with borrowers with fair ratings. The catch is these lenders charge relatively high-interest rates and add-on fees to protect themselves in case of default. They may also offer personal loans with shorter repayment periods or for a small amount of money.
Your best bet is to look into an online loan marketplace. Loan marketplaces let you submit one application and receive multiple offers from various lenders in mere minutes, all without damaging your rating.
These platforms work by conducting a soft pull to see what you qualify for. Based on this information, they match you with direct lenders in their network who work with borrowers in your score range. This process allows you to compare offers – interest rates, loan terms, loan amounts, and repayment options – before you formally apply so you can get the best loan possible.
Paying back a loan as agreed can raise your rating and lead to better loans in the future. Just make sure you can afford the full cost of the loan.
What are the advantages of a 590 credit score personal loan?
The only real advantage of personal loans for a 590 credit score is that they give you the opportunity to improve your score. By making timely payments and reducing debt you can gradually raise your rating. If you’ve only had cards before, a personal loan will also positively contribute to your credit mix. In order for this to work, the lender must report your payment history to all three national credit bureaus. Most lenders do, but not all.
Additionally, if you are in desperate need of cash and you have a low rating it can be reassuring to know that there are lenders who will work with you. Most will charge a lot in fees, but you can get approved and get your money fast.
A lower-cost option is a paycheck cash advance. Cash advance apps send you a portion of your paycheck early. Many offer fast cash with no interest, no credit check, and minimal fees. The advantage of these loans is they can cost you a lot less than a traditional personal loan.
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How much can I borrow with a 590 credit score?
Is 590 a good credit score? No, it is not so the amount you can borrow will be limited. Lenders are less willing to take a chance and give large amounts to borrowers they consider higher risk. Expect to qualify for personal loans ranging from $1,000 to $6,000. LendingTree found that the average loan amount for a fair score was $6,007. Some lenders offer personal loans up to $10,000 or more, depending on additional factors like income stability and debt-to-income ratio.
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What’s the minimum credit score I need to get a loan?
The minimum score required varies widely among lenders and depends on the type of loan you’re applying for. A FICO score of 620 is often considered the baseline for approving personal loans. The good news is this figure is not set in stone. Some financial institutions may have more flexible criteria and offer loans to applicants with scores as low as 580 or even 550. Many of these loans require the borrower to have a reliable income and dependable employment history to compensate for their rating.
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What do lenders consider when evaluating a potential borrower with a 590 credit score?
When evaluating a potential borrower with a 590 credit score lenders look at additional factors besides your rating. This gives them a comprehensive picture of your financial health and helps them fully assess how likely you are to pay them back. Other factors lenders consider include:
Debt-to-income ratio (DTI): Your DTI shows lenders how much of your income is already committed to debt. A lower DTI indicates more disposable income to repay a new debt, making you a more attractive borrower. Most lenders want a DTI of 35% or lower.
Employment history and stability: Consistent employment suggests a steady income stream, which reassures lenders about your ability to meet monthly payments.
Income level: Your income level helps lenders gauge your repayment capability. Higher income might compensate for a lower rating to some extent.
New
Existing relationship with the lender: Sometimes, having an existing account or a previous relationship with the lender can work in your favor, as they can directly assess your financial management with them.
For borrowers with a 590 credit score, highlighting strengths in these areas can improve loan approval chances and potentially lead to better loan terms.
Percentage of generation with 300–639 credit scores
| Generation | Percentage |
|---|---|
| Generation Z (18-23) | 37.7% |
| Millennial (24-39) | 41.2% |
| Generation X (40-55) | 40.3% |
| Baby Boomers (56-74) | 25.1% |
| Silent Generation (75+) | 17.8% |
What information credit scores do not consider
Credit scores are an important factor in determining how trustworthy of a borrower you are, but they don’t capture your entire financial picture. A scoring model does not consider:
Demographic information: your age, race, nationality, gender, and marital status are completely excluded from scoring models by law. This ensures decisions are made based on financial behavior rather than personal characteristics.
Income and employment status: Your salary, occupation, title, employer, and employment history are not included in your report and so are not part of your score.
Savings and investment balances: The amounts in your checking, savings, or investment accounts are not factored into your score.
Residence information: Where you live or the length of time you’ve lived in one place does not affect your score. Similarly, owning a home versus renting is not considered.
Soft inquiries: Hard inquiries do appear on your score, but soft pulls do not. Soft inquiries are when you check your own score or a financial institution does a check for pre-approval or promotional offers.
Knowing what isn’t part of your score can help you focus on the factors that contribute to it. Although, remember that just because it’s not part of how your three-digit rating is calculated does not mean that lenders don’t take it into account.
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How can I improve a 590 credit score?
590 is a bad credit score. The best thing you can do when you have such a low rating is work to improve it. A score in the good range will lead to more favorable terms, reduced fees, and you’ll gain access to more credit options. It won’t happen overnight, but with a little work and healthy habits you’ll be able to raise your rating.
The five main factors in calculating your score are:
- Payment history – 35%
- Usage – 30%
- How long you’ve had accounts – 15%
- Types of accounts – 10%
- New accounts – 10%
The first thing you should do is check for errors on your credit report that may be dragging down your score. You can get your report from annualcreditreport.com once a year. If you see any mistakes on your credit reports, dispute them.
Next, look at why you have a low score. Perhaps it’s a poor payment history or high debt levels. Then start by addressing these issues.
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Don’t let your credit card balances balloon
Contrary to popular belief, you don’t need to carry a balance to improve your score. A high balance can actually hurt your rating and cause you to pay more in interest. Ideally, your balance should be 30% or less of your available credit.
The average consumer with a score of 590 has a usage rate of 78.2%, per Experian. Whereas the average consumer with a score of 800 or more has a credit usage of only 5.7%.
To maintain a low utilization ratio, pay your account in full each month and make multiple payments throughout the month if necessary.
Always pay on time
You must pay your bills on time. Payment history is the most important factor in calculating your score. Set up automatic payments for recurring bills. Late payments of more than 30 days can hurt your rating and stay on your report for up to seven years.
If you think you might miss a payment, reach out to creditors and see if they can work with you to reduce interest rates or lower the minimum payment. If you have past due accounts, bring them current and continue making timely payments.
Use a reporting service to boost your score with on-time rent, utility, and subscription payments.
Think carefully before closing old credit card accounts
Think twice before you close an old account. Each account increases the length of your credit history and contributes to your total credit limit. The older the average age of your accounts, the better your rating. The bigger your overall limit, the larger the balance you can have.
Keep credit accounts open and use them for a small recurring charge so the issuer doesn’t close them. The exception is if they have large fees. Then it may be better to close them and take the temporary hit to your score.
Don’t apply for too many new credit cards at the same time
Each time you apply for a card, the issuer conducts a hard inquiry which will temporarily reduce your rating. One hard inquiry is usually not a big deal, but multiple ones in a short period signal to lenders that you’re desperate and therefore a risky borrower. Only apply for new accounts when you need to.
Number of open accounts by credit score range
| Credit Score Range | Average Number of Open Accounts |
|---|---|
| 750-850 | 3 |
| 700-749 | 4 |
| 640-699 | 4 |
| 300-639 | 4 |
What credit card can I get with a 590 credit score?
Your choices will be limited. A 590 credit score credit card will either be a secured card or a subprime unsecured card designed for lower ratings.
A secured credit card is your best bet. You will have to put down a security deposit – fully refundable – which becomes your limit. Most secured cards ask for a minimum security deposit of $200. Some only ask for $100 and others do not even require a minimum deposit. If you fail to pay, the card issuer can seize your deposit to cover what you owe. This significantly lessens the risk to the lender making secured cards very easy to be approved for.
Lots of people can’t afford a secured card. That’s why card issuers created are unsecured credit cards for a 590 credit score. These cards have minimal score requirements but will have a higher interest rate, an annual fee, additional fees, and low limits. Use them sparingly, pay on time, your rating will go up so you can qualify for better cards.
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Bottom line
A 590 credit score is not ideal but it’s a good starting point. You will still find it hard to get a loan or card but not impossible. The offers you do get will come with higher interest rates and additional fees to protect the lender. The good news is a fair credit score is not a permanent state. With some hard work, you can raise your rating. Boost your score into the good category and you could save hundreds to thousands of dollars in interest.
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.