580 Credit Score
Is a 580 credit score good? What does a credit score below 580 mean? Is it possible to have a 580 credit score and get a mortgage? Here is everything you ever would need to know about having a 580 credit score (and then some).
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Is a 580 Credit Score Good?
Credit scores using the FICO scoring model range from 300 to 850. A 580 credit score is considered to be around a “C” grade. This means that although you will not qualify for the very best mortgage rates or auto loan rates you can still get a loan almost anywhere but you will certainly pay somewhat high interest rates and you may even be asked to have someone co-sign for you.
The basic “grading” of credit scores goes approximately like this:
“A” Grade - 720 credit score or higher
“B” Grade - 620 credit score to 719 credit score
“C” Grade - 580 credit score to 619 credit score
“D” Grade - 550 credit score to 579 credit score
“F” Grade - 550 credit score and lower
580 Credit Scores, Mortgages, Auto Loans, and More
The good news it that it is definitely possible to have a 580 credit score and get a mortgage or an auto loan. The bad news is that the loan will be underwritten very carefully (full documentation in most cases), the applicant may be asked to increase their deposit money or find a cosigner, and the interest rate for the loan will likely be fairly high (not astronomical but high nonetheless). If you want to get a mortgage with a 580 credit score then you will most likely be able to you will just have to put a little more time and effort into the process then someone with a higher credit score.
How to Get a Loan with a 580 Credit Score
Ok, so let’s say that I have a credit score of 580. How can I get an auto loan or mortgage with a 580 credit score? Here are some practical things to do if you have a credit score in the neighborhood of 580 and would like to get a home loan or other type of loan in the near future:
1. Check Your Credit Report for Errors - The first step is easy. Get a copy of your credit report from all 3 reporting agencies (Equifax, TransUnion, and Experian). Look through the 3 reports and find out if there are any errors that are affecting your credit score negatively. If you find any then all it will take to resolve the issue is often just an email or phone call. Sometimes just correcting one error on your report can increase your credit score by 20 - 30 points (a huge jump that could save you $1,000’s in interest over the life of a loan).
2. Pay Off Credit Cards - The lower you credit used to credit available ratio is then the more your credit score will jump. If you do not have the cash to pay off all of your cards at once then consider a credit card debt consolidation but be careful about applying for too many new lines of credit all at once as that can also adversely affect your credit report and potentially raise red flags with lenders.
3. Compare Lenders - Different lenders have different underwriting guidelines. Just because you may have been declined or received an unfavorable rate from one lender does not mean that the next lender that you apply to will be the same. Shop around and if you are in the market for a mortgage then consider enlisting the help of a mortgage broker that can work with many different banks and lenders.
Action Items
So now that you are better informed and understand a little bit about exactly what a 580 credit score means then it is time to get started with the 3 action steps below.
#1 Get your 3-in-1 credit report (RECOMMENDED: Get Equifax Credit Watch Gold 3-in-1 Now!)
#2 Find the top low interest credit cards for a credit card consolidation (RECOMMENDED: Consolidate Credit Card Debt at ConsolidateCreditCard.com Now!)
#3 Compare multiple lender (RECOMMENDED: Use our free mortgage quote tool and our free auto loan quote tool)
Do your research and then get started taking action today!