People with credit scores between 300 and 850 have good credit. Scores between 670 and 739 are bad. 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. A score in the high 700s or 800s is considered excellent. About a third of consumers have FICO® ScoresÎ that fall between 600 and 750âand an additional 48% have a higher score. In 2023, the average FICO® Score in the U. S. was 715.
Lenders use their own criteria for deciding whom to lend to and at what rates. But a higher credit score can generally help you qualify for a credit card or loan with a lower interest rate and better terms. The most common credit scores are the FICO® Score and the VantageScore® Credit Score. Their ranges are a little different, but their scoring factors are the same.
A credit score of 587 is considered a poor or bad credit score by most lenders. This score falls within the “fair” credit score range between 580-669 according to FICO, one of the most widely used credit scoring models.
What a 587 Credit Score Means
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A 587 credit score indicates you have had some financial struggles or lack of credit history in the past. This can make it challenging to get approved for credit cards, loans, mortgages, and other financial products.
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Lenders view borrowers with scores below 600 as high-risk. You may only qualify for credit with very high interest rates or fees.
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The average FICO score is 716, which means that this score is below the middle of the range. It is at the very bottom of all scores, since most 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
As you can see a 587 score is at the lower end of the fair credit range. It is 113 points away from being considered good credit by most lenders.
Factors Impacting a 587 Score
Several factors likely contributed to a 587 credit score:
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Late Payments: 2098% of people with a FICO score of 587 have late payments showing up on their credit report. Paying bills late hurts your credit utilization and payment history.
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High Balances: A credit score of 587 means that you use your cards 62 times a month on average. 1%. It’s possible to raise your score by keeping your balances below 100% of the limit.
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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.
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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.
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Collections: Accounts for collections often have a score of 587. Letting an account go to collections severely damages your score.
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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:
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Pay all bills on time. Set up autopay or reminders to avoid late payments which hurt your score.
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Lower credit utilization. Get balances below 30% of the credit limit on cards and loans. Consider making extra payments.
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Open new credit carefully. Too many new accounts too fast looks risky, but having diverse credit types can help. Consider secured cards.
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Let negative marks age. Collection accounts and public records fall off your report after 7 years. Bankruptcy after 10 years.
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Monitor your credit report. Dispute any errors you find. Sign up for free credit monitoring to protect your score.
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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 you’ll encounter limited loan options, and the available ones will often come with higher interest rates than those available to individuals with better scores.
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. For borrowers with a credit score between 500-579, you may still qualify for an FHA loan, but will be required to put 10% down.
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. While credit scores range from 300 to 850, most people think that a score in the mid to high 600s or higher is 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. Generally, it can take anywhere from 12 to 24 months of responsible credit management, such as making payments on time and lowering your debt, for your credit score to go up significantly.