With a credit score of 580, you may be wondering what it means. It can be challenging to visualize what credit scores actually mean and which are good or bad. Don’t worry because we’ve got you covered. Read this blog to learn everything you should know if your credit score is 580 and ways to boost your credit.
Is 580 a good credit score?
FICO scores range from 300 to 850. As you can see below, a 580 credit score is considered Fair.
|Credit Score||Credit Rating|
|300 – 579||Poor|
|580 – 669||Fair|
|670 – 739||Good|
|740 – 799||Very Good|
|800 – 850||Exceptional|
580 is considered a poor credit score
Generally, the higher your credit score, the better it is. Credit scores of 750 and higher are considered excellent. These are the cream of crops. Scores between 660 and 749 are considered good. Next are fair scores that are slightly lower than good scores ranging between 620 and 659. Finally, any score that’s lower than 619 is considered poor.
So it’s pretty clear that if you have a credit score of 580, you’ve got some work to do. Having a poor credit score can negatively impact your life and financial situation, causing you to pay thousands of dollars in interest compared to people with good credit scores.
What happens when you get a car loan with a credit score of 580?
You may get a car loan with a credit score of 580, but you’ll get something else along the way, an incredibly high-interest rate. Here’s a comparison of interest rates for a 36-month auto loan for two different car buyers.
|Buyer||Credit Score||Interest Rate|
This example shows how a buyer with a poor credit score of 580 gets a car loan at a higher interest rate of 14.8%, while the one with a good score of 680 walks away with a loan at a much lower interest rate of 6.7%.
It clearly shows that the one hundred point difference in credit scores is quite significant. So, buyer A with a credit score of 580 will end up paying $3700 more in interest over 36 months than buyer B with a higher credit score.
What happens when you get a home loan with a credit score of 580?
The road may be difficult for you if you’re looking to get a home loan with a credit score of 580 since usually, most mortgages require a minimum credit score of 620.
There may be some loan options available to you, but you will likely end up paying tens and thousands of dollars in interest throughout the loan compared to someone with a good or excellent credit score.
How does credit repair help?
Many people struggle with their credit score, and there’s no shame in that. Neither there’s shame in getting help from authentic credit repair service providers like Cool Credit, saving you thousands of dollars over time.
A credit repair specialist at Cool Credit will:
- Assess your credit report to identify any negative items that may be hurting your credit score. Anything questionable found on your credit report will be listed out for dispute. This assessment process helps both parties determine what they are dealing with and set a plan for credit restoration.
- Dispute the negative items on your credit report by connecting with the major credit bureaus on your behalf and asking them to remove them. (Get more details here.)
- Continue to monitor your credit report and alert you if new items appear, making it easier for you to stay on top of it.