Most lenders think that a credit score of 587 is bad or poor credit. Based on FICO, one of the most popular credit scoring models, this score is in the “fair” range, which is between 580 and 669.
What a 587 Credit Score Means
-
If your credit score is 587, it means you’ve had money problems or don’t have much credit history. It may be hard to get credit cards, loans, mortgages, and other financial products because of this.
-
Lenders view borrowers with scores below 600 as high-risk. You might only be able to get credit if the fees or interest rates are very high.
-
A 587 score is below the average FICO score of 716 It is in the bottom 30% of all scores, meaning 70% of people have higher scores.
Credit Score Ranges
Here is how a 587 score fits within the credit score ranges:
- Poor/Bad Credit: 300-579
- Fair Credit: 580-669
- Good Credit: 670-739
- Very Good Credit: 740-799
- Exceptional Credit: 800-850
A score of 587 is near the bottom of the range for good credit. It’s 113 points away from what most lenders consider good credit.
Factors Impacting a 587 Score
Several factors likely contributed to a 587 credit score:
-
Late Payments: 98% of people with a 587 FICO score have late payments on their credit report. Paying bills late hurts your credit utilization and payment history.
-
High Balances: The average credit card utilization for a 587 score is 62.1%. Keeping balances below 30% of the limit can help increase your score.
-
Too Few Accounts: Individuals with a 587 score have an average of only 4 open accounts. Having a mix of installment loans and revolving credit can help.
-
Short Credit History: Young people just starting to build credit often score in the fair range due to limited accounts and history. Time and responsible use will improve this.
-
Collections: It’s common to have collections accounts with a 587 score. Letting an account go to collections severely damages your score.
-
Hard Inquiries: Too many applications for credit in a short period results in hard inquiries that lower your score temporarily.
How to Improve a 587 Credit Score
Here are the main ways to start improving a 587 credit score:
-
Pay all bills on time. Set up autopay or reminders to avoid late payments which hurt your score.
-
Lower credit utilization. Get balances below 30% of the credit limit on cards and loans. Consider making extra payments.
-
Open new credit carefully. Too many new accounts too fast looks risky, but having diverse credit types can help. Consider secured cards.
-
Let negative marks age. Collection accounts and public records fall off your report after 7 years. Bankruptcy after 10 years.
-
Monitor your credit report. Dispute any errors you find. Sign up for free credit monitoring to protect your score.
-
Practice good habits. Making payments reliably over time and keeping balances low will steadily rebuild your credit.
Outlook with a 587 Credit Score
While a 587 credit score presents challenges for getting approved for credit and loans, the good news is that it can improve significantly over time with responsible habits. Opening new secured credit cards and personal loans designed for bad credit can help build your score back up. Keep balances low, make all payments on time, and be patient. With diligent effort, you can work your way back up into the good credit range within a few years. Monitor your score regularly and look for improvement.
Creditors Can Choose Which Credit Scores to Use
Lenders can choose which of your credit reports to request and which score, or scores, to receive. You often wont know which report or score the lender will use, and lenders might change their preferences or test different approaches.
The good news is most FICO and VantageScore credit scores rely on the same underlying information from one of your credit reports to determine your credit scores. They also all aim to make the same predictionâthe likelihood that a person will become 90 days past due on a bill (either in general or a specific type) within the next 24 months.
As a result, the same factors can impact all your credit scores. If you monitor multiple credit scores, you could find that your scores vary depending on the scoring model and which one of your credit reports it analyzes. But, over time, you may see they all tend to rise and fall together.
What Affects Your Credit Scores?
The common factors that can affect all your credit scores fall into several categories:
- Payment history: Making on-time payments on your credit accounts can help your scores. But missing payments, having an account sent to collections or filing bankruptcy could hurt your scores.
- Credit usage: How many of your accounts have balances, how much you owe and your credit utilization rateâthe portion of your credit limit that youre using on revolving accounts such as credit cardsâall come into play here.
- Length of credit history: This category includes the average age of all your credit accounts, along with the age of your oldest and newest accounts.
- Types of accounts: Also called “credit mix,” this considers whether youre managing both installment accounts (such as a car loan, personal loan or mortgage) and revolving accounts (such as credit cards and other types of credit lines). Showing that you can manage both types of accounts responsibly generally helps your scores.
- Recent activity: This considers whether youve recently applied for or opened new accounts.
FICO and VantageScore take different approaches to explaining the relative importance of the categories.
FICO uses percentages to represent how important each category generally is, but the exact percentage breakdown used to determine your credit score will depend on your unique credit report. FICO considers scoring factors in the following order:
Credit Scores Between 580 and 600: Explained
FAQ
Is 585 a good credit score?
What Kind of Credit Score Is 585? Reading Time: 4 minutes A 585 credit score is in the “Fair” range according to Experian. This means that you won’t have many loan options, and the ones that are out there will usually have higher interest rates than loans for people with better credit.
What is the best credit score?
The best credit score is 850. Here’s a breakdown of FICO scores and what they mean: 300 to 579 — Very poor credit. 580 to 669 — Fair credit. 670 to 739 — Good credit. 740 to 799 — Very good credit.
Can you buy a house with a 575 credit score?
The most common type of loan available to borrowers with a 575 credit score is an FHA loan. Keep in mind, that in order to qualify for a 3. 5% down payment, you must have at least a 580 credit score. FHA loans are still available to people whose credit scores are between 500 and 579, but they will have to put down a larger amount of money.
When is a credit score considered good?
A 700 credit score puts you in the middle of what’s considered the good range for FICO scores. The most recently reported average FICO score in the U.S. is 716, so you’re doing pretty well by
Can I get a loan with a 587 credit score?
The short answer is yes, but you’re likely to get a significantly higher-than-average interest rate.
Is a credit score of 587 good or bad?
Your score falls within the range of scores, from 580 to 669, considered Fair. A 587 FICO® Score☉ is below the average credit score. Some lenders see consumers with scores in the Fair range as having unfavorable credit, and may decline their credit applications.
What is a realistically good credit score?
For a score with a range of 300 to 850, a credit score of 670 to 739 is considered good. Credit scores of 740 and above are very good while 800 and higher are excellent. For credit scores that range from 300 to 850, a credit score in the mid to high 600s or above is generally considered good.
How long does it take to go from 580 to 700 credit score?
The time it takes to raise your credit score from 500 to 700 can vary widely depending on your individual financial situation. On average, it may take anywhere from 12 to 24 months of responsible credit management, including timely payments and reducing debt, to see a significant improvement in your credit score.