If you have a credit score of 580, you’re probably wondering what that means. It can be difficult to visualize what credit scores actually mean and whether scores are good or bad. We've got you covered. Here’s a look at what you should know if you have a credit score of 580.
580 is Considered a Poor Credit Score
When it comes to credit scores, the general rule is the higher the better. Credit scores of 750 and higher and considered excellent. These are the cream of the crop. Next comes good scores. Score between 660 and 749 fall into this category. Fair scores are slightly lower than good scores, ranging from 620 to 659. Finally, credit scores of 619 and below are considered poor.
If you’re credit score is 580, you’ve got some work to do. Having a poor credit score can have a major impact on your life and cause you to pay thousands more dollars in interest than people with healthier scores.
Getting a Car Loan With a Credit Score of 580
If you apply for a car loan with a credit score of 580, you may get the loan. However, you’ll get something else too. An incredibly high interest rate. Let’s compare the interest rates for a 36-month auto loan for two different car buyers. One person has a credit score of 580. The other has a credit score of 680. The buyer with the poor credit score of 580 may get their loan with an interest rate of about 14.8%.The buyer with the score of 680, a good credit score, would likely be able to walk away with a loan with a 6.7% interest rate.
The one hundred point difference in credit scores is quite significant. The person with the credit score of 580 will end up paying more than $3,700 more in interest than the buyer with the higher credit score over the course of the 36 months.
Getting a Home Loan With a Credit Score of 580
If you’re looking to get a home loan with a credit score of 580, the road may be difficult. Most mortgages require a minimum credit score of 620. However, some loans may be available to you. Still, you will likely end up paying tens of thousands more dollars over the course of the loan than someone with a good or excellent credit score.
How Credit Repair Can Help
There’s no shame in struggling with your credit score. Many people do. Credit repair can help. Credit repair can help you raise your credit score and clean up your credit report, saving you thousands of dollars over time.
USA Credit Repair can help you remove collections, late payments, charge offs, liens, bankruptcies, judgments, repossessions and foreclosures from your credit report. We’ve helped more than 800,000 people just like you take control and fix their credit. We can give you the tools to move forward, budget and make sound financial decisions that will keep your credit score moving upwards. Contact us today.