A 595 credit score is a fair FICO Score and a poor VantageScore.
A 595 credit score may indicate that you are new to credit or that you may find it challenging to manage your finances.
Borrowers with a 595 credit score may find it difficult to get approval for unsecured loans or credit cards without high interest rates. Keep reading to get a better understanding of your credit position.
Key Takeaways for a 595 Credit Score
Overview of Your
Credit Rating
A 595 credit score is fair. Fair credit scores fall at the lower end of the credit-scoring spectrum. While a fair credit score is better than a poor one, borrowers should still aim for a higher credit tier to get better rates on loans.
Borrowing Options With a
595 Credit Score
Borrowers with a 595 credit score can still qualify for a lot of unsecured loans, but interest rates may be unattractive. Fair credit borrowers may also be eligible for certain types of mortgage and auto loans.
Improving a 595
Credit/FICO Score
Fair credit borrowers can improve their low credit by paying down their credit card balances and maintaining a good payment history. Credit-building products, such as secured credit cards, may also be helpful.
Is a 595 Credit Score Good?
A 595 credit score is not considered good by most financial institutions. A good FICO Score ranges from 670 to 739, which means you are 75 points away from a good credit score. A 595 score indicates that you may have trouble paying your bills on time and managing your personal finances. While you may still qualify for new credit accounts, your loan offers may not be ideal or affordable.
What Can You Get Approved for With a 595 Credit Score?
If your credit score is currently lower than the average credit score, you may still get approved for all types of loans. Take a look at some unsecured and secured loans below for fair credit borrowers.
Personal Loans
A personal loan is a versatile loan option that can provide a small to large lump sum. Eligibility for personal loans typically depends on your creditworthiness and recurring income. If your credit is lower than the average credit score, you may still qualify for a personal loan. However, you will have to inquire with multiple lenders to find the best loan offer for your financial situation. Keep in mind that online lenders may offer better deals on personal loans than brick-and-mortars.
Bank Loans
A traditional bank loan may be difficult to get with a 595 credit score. Bank loans generally have very strict qualification requirements. If you don’t have good to excellent credit, you may not qualify for a loan with most banks. If you do get approved for a bank loan, your rates may be very unattractive, and you may obtain less than you need for an unexpected emergency.
Credit Cards
Most credit card companies require good credit for qualification. If you have a 595 credit score, you may only qualify for specific credit cards that have super high interest rates. When the annual percentage rate (APR) is too high, you can end up spending a lot on interest fees. According to the Consumer Financial Protection Bureau (CFPB), the average APR for credit cards in 2023 was 22.8%.¹
If you want to improve your credit history and obtain an average credit score, consider applying for a secured credit card. A secured credit card requires a security deposit, which acts as your credit limit. By paying bills on time and maintaining a low credit utilization rate, you can obtain a higher credit score over time. Just remember to keep your credit card debt low and make your monthly payments on time.
These are some of the best secured cards for 595 credit scores:
- Discover it® Secured Card
- Capital One Quicksilver Secured Cash Rewards Card
- Business Advantage Unlimited Cash Rewards Secured Card
- Amazon Secured Card
- Bank of America® Customized Cash Rewards Secured Card
Auto Loans
An auto loan generally offers high loan amounts so borrowers can buy new or used cars. Fair credit borrowers have a moderate chance of getting approval for a car loan. But if you are eligible, expect auto loan interest rates to be higher than they would for good or excellent credit scores. According to Experian, the average APR for subprime credit scores is 11.86% for a new car, and 18.39% for a used one.² Borrowers can reduce the cost of an auto loan by opting for a shorter repayment period or offering a higher down payment.
Products To Help Improve a 595 Credit Score
It can be difficult to obtain an average credit score without a plan of action. Luckily, there are many products that can help you improve your credit score.
Credit Builder Loans
A credit builder loan is basically a savings account that you pay off. The borrower must agree on a loan amount with the lender, who puts the money into a secure savings account. You will make monthly payments for a specific period of time until you reach the agreed loan amount. Once you pay off the loan, the lender releases the money to you! Lenders report your payments to the major credit bureaus that update your credit reports. A history of on-time payments can reflect positively on your credit score over time.
Credit Report Monitoring
Monitoring your credit reports is essential, but many people don’t check their reports regularly. The three credit bureaus provide free reports to consumers through the Annual Credit Report website every 12 months. You can easily request one or more credit reports and inspect them for incorrect information. Mistakes on a credit report can negatively impact your credit history and decrease your credit score. Luckily, mistakes can be disputed with the credit bureaus and corrected promptly.
Automatic Payments
Automatic payments help borrowers avoid missed payments because the monthly amount due is automatically deducted from the payment method on their account. If you struggle to keep track of your various due dates, consider signing up for autopay. Autopay is a free feature offered by most financial institutions. By using autopay, you can maintain a good payment history and increase your credit score over time.
Benefits of Improving Your 595 Credit Score
By improving your 595 credit score, you could receive a lot of benefits that improve the quality of your life. Read about some of the perks you can look forward to below.
Save More Money
Having at least an average credit score can help you qualify for amazing discounts and lower rates. While it’s true that lenders offer low-rate loans and credit card accounts to borrowers with good credit, you could also get discounts from insurance and phone companies. Lower fees and rates can help you save a lot of money, which increases your monthly income. Extra income allows you to grow an emergency fund or invest.
More Financial Opportunities
Higher credit scores generally have access to the best loan products available. If your credit score is high, you could easily qualify for credit accounts that offer the lowest rates, best rewards, and minimal fees. Rewards credit cards can help borrowers save on everyday purchases and earn points, cash back, or travel miles. But the best rewards credit cards generally require a higher credit score for qualification.
Higher Loans
A good credit history shows a lender that you can successfully manage your finances. When a lender considers you a low credit risk, they may feel confident offering higher credit limits and loan amounts. When credit limits on credit accounts are high, that means you can spend more without negatively affecting your credit score.
How To Improve Your 595 Credit Score
There are many ways to improve your credit history and obtain a higher credit score. If you need tips on how to get started, read some financial tips below.
Reduce Your Credit Usage
One of the best ways to boost your credit score quickly is to significantly reduce the amount of credit card debt you have. The amount of debt you owe (credit utilization ratio) makes up 30% of your FICO Score. If you are carrying a lot of credit card debt, your credit score could be severely affected. There are different types of repayment strategies available that can help you speed up the repayment process. However, one of the best ways to chip away at your debt is to pay more than the minimum each month.
Maintain a Good Payment History
Maintaining a good payment history can help you steadily increase your credit score over time. Your payment history is the most important factor that affects FICO and VantageScores. If you have trouble keeping track of your payments, you can sign up for autopay. You can also opt-in for payment alerts that send emails or text messages a few days before your due date.
Become an Authorized User
An authorized user is someone who is added to an existing credit card account. When you are attached to an account in good standing, their financial activity will also be reflected in your credit history. If they responsibly manage their credit, your credit score can increase over time as a result. But remember that any delinquency will also negatively affect you.
FAQs About 595 Credit Scores
Can improving my credit history impact my loan approval chances?
Absolutely! Your credit history plays a crucial role in your loan approval chances. Even with a 595 credit score, showing recent improvements in your credit behavior can positively impact a lender’s decision. This includes actions like consistently making payments on time, reducing your debt levels, and avoiding new credit inquiries.
How does a 595 credit score affect my options for refinancing existing loans?
With a 595 credit score, refinancing existing loans is possible, but your options might be limited. Lenders typically look for signs of a stable or improving credit history when considering refinancing applications. If you’ve shown improvement in managing your credit since taking out your original loan, this can work in your favor.
How can a 595 credit score impact my ability to get a credit card?
If you’re navigating financial options with a 595 credit score, securing a credit card might seem challenging, but there are viable paths to consider. Store credit cards might be more accessible, though they often come with higher interest rates. Additionally, exploring credit builder programs or securing a co-signer for a credit card application can further enhance your approval odds.
What Interest Rate Can I Get With a 595 Credit Score?
Borrowers with a 595 credit score have subprime credit, which may result in loan offers with significantly higher interest rates. If you are in need of emergency cash, you may feel inclined to apply for bad credit loans for easy approval and better rates. However, these loans can be predatory and come with hidden fees. You can still find an affordable loan deal with a 595 credit score, but you will have to compare lenders to find the best offer.
Can I Buy a House With a 595 Credit Score?
You might not qualify for conventional loans with a 595 credit score since they typically require a credit score of 620 or higher. Instead, consider getting a mortgage insured by the Federal Housing Administration (FHA). FHA loans require a minimum credit score of 500 with a 10% down payment or 580 with a 3.5% down payment.
Here’s a table to illustrate potential non-conventional mortgage options:
Loan Type | Interest Rate (Approx.) | Down Payment | Special Considerations |
FHA Loan | 4.5% – 6.5% | 3.5% – 10% | Lower credit scores accepted, PMI required |
VA Loan | 4.0% – 6.0% | 0% | No PMI, must be a veteran or service member |
USDA Loan | 4.0% – 6.0% | 0% | For rural properties, income limits apply |
Subprime Mortgage | 6.5% – 9.5% | 10% – 20% | Higher interest rates, may have prepayment penalties |
Disclaimer: For the most accurate and current rates, it’s best to consult directly with lenders or use online loan comparison tools, as they can provide personalized rates based on your complete financial profile, including your credit score, income, and other debts.
