580 Credit Score: Can I Get a Loan or Credit Card?

Most credit scores that lenders use in the United States range from 300 to 850. These numbers communicate your level of credit risk to lenders—how likely you are to repay credit obligations on time. The higher your credit score, the lower your credit risk. And the opposite is true as well.

A 580 credit score is a sign of elevated credit risk. It could signal to lenders that you have a lack of credit history or other credit problems, like trouble paying your bills as agreed. According to Experian, only 29% of consumers have fair FICO® Scores (580-669) or poor FICO Scores (300-579). Meanwhile, 71% of American consumers have good credit scores or better.^[1]

Although your credit score isn’t the only detail lenders consider when you apply for financing, a credit score of 580 or below could make it harder to qualify for certain loans or credit cards. If you find lenders that are willing to work with you when you have a fair or poor credit score, you’re likely to pay higher interest rates and receive less attractive financing terms.

Read on to learn how a 580 credit score could affect you when you want to borrow money. Plus, discover potential ways to lift a 580 credit score and build better credit for the future.

Is 580 a good credit score?

A credit score is a predictive tool that helps lenders and other businesses understand the actions a consumer is likely to take in the near future. When you apply for a new loan or credit card, a lender uses a credit score to predict how likely you are to pay a credit obligation late (by 90 days or worse) in the next 24 months.^[2]

When you have a credit score of 580, that number tells a lender that you’re more likely to pay your bills late compared to someone with a higher credit score. In other words, your credit rating is fair—and just barely. (See table below.) At 579, a lender would classify your credit score as “poor.” So, a 580 credit score indicates a relatively high level of credit risk.

Within the FICO Score scale (300-850), your credit risk level may fit into one of the following credit score ranges.

Credit score ranges

Source: myFICO ^[3]

As mentioned in the table above, having a FICO Score of 580 also means that your credit score is well below average compared to other U.S. consumers. As of October 2024, the average FICO Score in the United States was 717 according to FICO data.^[4]

Can I get a credit card with a 580 credit score?

As a borrower with a 580 FICO Score, your score falls into the “fair credit” category (almost poor or a bad credit score). This could make qualifying for certain credit cards a challenge since you might not be able to satisfy the minimum credit score criteria requirements for some offers.

For example, if you have a 580 credit score you probably won’t be eligible for premium travel rewards credit card offers or the most competitive cash back credit cards. It might also be difficult to qualify for attractive balance transfer credit card offers in this situation.

Yet even with a 580 credit score, you may be eligible for subprime credit card offers designed to make credit more accessible for consumers who want to build credit or rebuild credit after a setback. Some examples of these types of credit cards are below.

• Secured credit cards: A secured credit card is a type of account that requires a cash security deposit. Because your security deposit acts as collateral for the account, the issuing bank’s risk is lower with this type of credit card. As a result, it’s often easier to open this type of credit card even with a lower credit score or no credit at all.
• Subprime unsecured credit cards: A subprime unsecured credit card doesn’t require a deposit to open the account. However, the terms of the account like the annual percentage rate (APR) and annual fee tend to be far less competitive compared to prime credit card offers. Subprime credit cards also may not feature rewards (like cash back or the ability to earn points on purchases) and, if they do, those rewards are often limited.^[5]
• Student credit cards: Some student credit card offers also have lenient credit score criteria and may even come with benefits like low (or no) annual fees and limited rewards. So, if you’re a student who has fair credit or no credit established, these types of credit card offers might be worth considering.
• Authorized user: Another possible way to get a credit card with a 580 credit score is to become an authorized user on a friend or family member’s account. If you’re having trouble qualifying for a credit card of your own, being an authorized user on the credit card of someone you know might be beneficial in the short run—providing you convenience and the potential to build credit for the future. (See below for detailed credit building tips.) Yet you should only be an authorized user on the credit card of someone you trust (like a spouse or partner). You should also make sure both you and the primary account holder understand the risks associated with an authorized user arrangement.

Can I get a loan with a 580 credit score?

Lenders use your credit score to assess your eligibility for other types of financing offers as well, including different loans. If you apply for a personal loan, an auto loan, or a mortgage, your credit score will help determine whether a lender approves your financing application and the price you pay to borrow money. (Note: Lenders may consider other details like your income, current debts, employment history, and other factors as well.)

Here’s a look at how a 580 credit score might affect you in each of the following situations.

Can I get a personal loan with a 580 credit score?

Depending on the lender’s minimum credit score requirements, it may be possible to take out a personal loan with a 580 credit score. Some lenders are willing to offer personal loans to borrowers with fair FICO Scores. But since a 580 credit score only just qualifies as fair credit, this score might be too low to meet the eligibility criteria for some loan offers.

If you find a lender that will issue you a personal loan with a 580 credit score, you should expect less attractive borrowing terms compared to loan offers for good credit. Interest rates, origination fees, and other loan fees may be more expensive with these types of financing options. And maximum loan amounts may be more restrictive as well.^[6]

You can use some personal loans to consolidate credit card debt. Yet before you move forward, it’s important to make sure that a debt consolidation loan has the potential to save you money. In other words, you need to calculate the costs of a new consolidation loan offer (e.g., APR and fees) compared to the rates and fees you’re paying on your current credit card debt. (Tip: Try an online debt consolidation calculator to help with the math.)

Unfortunately, finding an affordable debt consolidation loan might be difficult with a 580 credit score due to your credit risk. So if you have a fair or poor credit score, it’s especially important to shop around and compare personal loan rates and fees from several lenders.

Can I get an auto loan with a 580 credit score?

As with other loans, your credit score is a key factor that auto lenders use to determine your eligibility for auto financing. And while it is possible to get approved for an auto loan with a 580 credit score, having a score in this range could also put you in a position where you’re limited to subprime car loan offers.

According to Experian data, the average new car loan interest rate was 5.25% in 2024 for borrowers with excellent credit scores. Meanwhile, borrowers with poor credit scores paid an average of 15.77% for “deep subprime” financing on new car loans. Subprime borrowers, or those with credit scores between 502-600, paid an average of 13.18% for new auto loans. (Note: Experian used VantageScore 4.0 credit scores for these average interest rate assessments.)^[7]

Here’s a closer look at the average auto loan interest rates and monthly payment amounts consumers paid in 2024, based on their credit score.

Source: Experian ^[7]

Can I get a mortgage with a 580 credit score?

The minimum credit score requirements to buy a home can vary depending on the type of mortgage you’re applying for and the lender issuing the loan. That’s why it’s important to ask mortgage lenders key questions such as the types of mortgage loans they offer and details about specific loan qualification requirements when you’re shopping for a home loan.

In some cases it is possible to get a mortgage with a 580 credit score. The basic credit score requirements for a mortgage loan are as follows.

• FHA loan: 580 minimum credit score with a 3.5% down payment or 500 minimum credit score with a 10% down payment. Some lenders may require a 620 minimum score.^[8]
• VA loan: No official minimum credit score requirement. Some lenders may require borrowers to have a 620 score.
• USDA loan: No official minimum credit score requirement. Some lenders may require a 620 minimum credit score from borrowers.
• Conventional loan: Most conventional loans require a 620 minimum credit score.^[9]

As of January 3, 2025, the average mortgage rate on a conventional 30-year fixed-rate mortgage was 7.26% for someone with a very good FICO Score of 740 according to Experian data. But mortgage rates could be higher for people with lower credit scores.

For example, the average mortgage interest rate for a fair credit borrower with a 620 FICO Score during this same time period was 7.89%. And although the average mortgage rate for borrowers with 580 FICO Scores are not available, it’s safe to assume that those consumers would likely pay even higher interest rates if they could find lenders to approve their applications.^[10]

It’s also worth pointing out that a 7.26% vs. 7.89% APR might not seem like much. But with a large loan like a mortgage, even a small rate difference can be meaningful. Here’s a side-by-side comparison of how much more you might pay on your mortgage in this scenario—both monthly and in overall interest costs.

Loan comparison
30-year fixed-rate mortgage
Loan amount: $404,000
Down payment: $14,140 (3.5%)

Source: Experian ^[10] and MortgageCalculator.org ^[11]

How to lift a credit score of 580

It’s important to understand that every lender sets its own minimum credit score criteria (along with other standards) that potential borrowers need to meet when they apply for financing. As a result, there’s no such thing as a universal minimum credit score you need to have before you can qualify for a credit card or loan. Yet the lower your credit score falls, the harder it can be to borrow money—especially if you’re looking for a loan or credit card with a low interest rate and competitive borrowing terms.

Finding good financing deals with a credit score of 580 can be tough. So, if you have a fair credit score or bad credit, it’s a good idea to take steps to try to lift your credit score and hopefully put yourself in a better position for the future.

Below are some steps you can take that may help you build your credit over time.

1. Review your credit reports

One of the first and most important steps you can take when you’re working to lift your credit scores is taking the time to review your credit reports. Your credit reports from the three major credit bureaus—Equifax, TransUnion, and Experian—are the basis for your credit scores. So, it’s important to know about any negative information that appears on your credit reports (e.g., late payments, collection accounts, etc.) and aim to avoid those types of blemishes moving forward.

2. Consider a credit builder loan

As mentioned above, you may be able to qualify for certain types of credit cards or loans with a 580 credit score. But if your primary goal is to build credit and you don’t need to borrow a lump sum of cash upfront, a credit builder loan might also be worth considering.

Unlike a traditional installment loan, you don’t receive the money you borrow right away with a credit builder loan. Instead, the lender sets aside your loan proceeds (typically $1,000 or less) in a savings account or certificate of deposit (CD) once you’re approved for financing.

As you make your monthly payments, the lender will often report that activity to one or more of the major credit bureaus—giving you an opportunity to build positive credit history if you pay on time. Then, at the end of your loan term you’ll receive access to your loan proceeds (minus any fees or interest) after you make your final payment.

3. Pay on time

No matter what type of accounts you establish in an effort to build credit, it’s essential to keep all of your payments on time. Late payments on credit cards, loans, or even on an authorized user account could be a huge setback in the credit score department.

In fact, 35% of your FICO Score is based on your payment history. Payment history is the most significant factor that impacts your credit score. So, if your goal is to lift your credit score to a higher level for the future, on-time payments are a must.

Late payments can remain on your credit report for up to seven years. But it’s also important to remember that the impact of a late payment becomes less significant as time passes. In other words, if your credit report shows a 90-day late payment on a credit card from three months ago, the impact on your credit score could be severe. But if that same 90-day late payment is five years old, the impact on your credit score should be a lot less meaningful.^[12]

4. Manage your credit card balances

Another important detail to pay attention to if you’re trying to lift your credit score is your credit utilization ratio—the relationship between your credit card balances and credit limits. When your credit report shows a high credit utilization ratio, your credit scores tend to decline. Maintaining a low credit card balance-to-limit ratio, however, may be good for your credit scores and your overall finances.

The best way to manage a credit card is to pay off the full statement balance every month. Following this smart habit can help you avoid paying interest charges on your account and it may help you keep your credit utilization ratio under control as well. And if you really want to make sure that your credit utilization ratio stays as low as possible on your credit report, consider paying your credit card bill early each month—ideally before the statement closing date on your account.

If you’re currently struggling with credit card debt, paying down your balances might be an effective way to lift your credit score. And as you work to reduce your credit card debt, you should save money on interest as well.

Bottom line

It may be possible to get a loan or credit card with a 580 credit score. But fair credit or bad credit could make it harder for you to qualify for new financing—especially if you want a good interest rate and competitive borrowing terms.

As a result, it’s smart to try to find ways to lift your credit score for the future if you’re struggling with less-than-perfect credit. Good credit may not happen overnight, but the payoff is worth the effort in the long run.

Sources

1. Experian.com. “What Is a Good Credit Score?” https://www.experian.com/blogs/ask-experian/credit-education/score-basics/what-is-a-good-credit-score/#:~:text=For%20a%20score%20with%20a,800%20and%20higher%20are%20excellent
2. Experian.com. “When Do Late Payments Get Reported?” https://www.experian.com/blogs/ask-experian/when-do-late-payments-get-reported/#:~:text=90%20days%20late%3A%20Credit%20scores,drop%20at%2090%20days%20late
3. myFICO.com. “What Is a Credit Score?” https://www.myfico.com/credit-education/credit-scores
4. FICO.com. “Average U.S. FICO® Score stays at 717 even as consumers are faced with economic uncertainty.” https://www.fico.com/blogs/average-u-s-ficor-score-stays-717-even-consumers-are-faced-economic-uncertainty#:~:text=FICO
5. Experian.com. “What Does Subprime Mean?” https://www.experian.com/blogs/ask-experian/what-is-subprime/
6. Experian.com. “What Credit Score Is Needed for a Personal Loan?” https://www.experian.com/blogs/ask-experian/what-credit-score-is-needed-for-a-personal-loan/
7. Experian.com. “Average Car Loan Interest Rates by Credit Score.” https://www.experian.com/blogs/ask-experian/average-car-loan-interest-rates-by-credit-score/
8. AmericanExpress.com. “What’s the Minimum Credit Score Needed to Get an FHA Loan?” https://www.americanexpress.com/en-us/credit-cards/credit-intel/fha-loan-credit-score/
9. Chase.com. “How to get a home loan with bad or low credit.” https://www.chase.com/personal/mortgage/education/financing-a-home/home-loans-with-low-credit
10. Experian.com. “Average Mortgage Rates by Credit Score.” https://www.experian.com/blogs/ask-experian/average-mortgage-rates-by-credit-score/
11. MortgageCalculator.org. “Mortgage Calculator.” https://www.mortgagecalculator.org/
12. myFICO.com. “What Is Payment History?” https://www.myfico.com/credit-education/credit-scores/payment-history#:~:text=What%20is%20Payment%20History%3F,major%20factor%20in%20its%20calculation

About the author

Michelle Lambright Black is a nationally recognized credit expert with two decades of experience. She is the founder of CreditWriter.com, an online credit education resource and community that helps busy moms learn how to build good credit and a strong financial plan that they can leverage to their advantage. Michelle's work has been published thousands of times by FICO, Experian, Forbes, Bankrate, MarketWatch, Parents, U.S. News & World Report, and many other outlets. You can connect with Michelle on Twitter (@MichelleLBlack) and Instagram (@CreditWriter).

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