Is 580 a Good Credit Score? Rating, Loans & How to Improve (2024)

Is 580 a good credit score? Credit card & loan options. How to improve a 580 credit score.

John S Kiernan, Managing Editor
May 24, 2024

Poor Credit

A credit score of 580 is a “bad” credit score, unfortunately. It is 120 points away from being a “good” credit score, which many people use as a benchmark, and 60 points from being “fair.” Such a score will make it difficult to get approved for a decent loan or line of credit.

Key Things to Know About a 580 Credit Score

• Credit Rating: 580 is considered a bad credit score.
• Borrowing Options: Most borrowing options are available, but the terms are unlikely to be attractive. For example, you could borrow a small amount with certain unsecured credit cards or a personal loan for damaged credit, but the interest rate is likely to be high.
• Best Way to Improve a 580 Credit Score: Apply for a secured credit card and pay the bill on time every month.

Below, you can learn more about what a 580 credit score can get you and, even more importantly, how you can get a higher credit score. To that end, you can also check out your personalized credit analysis to see where you need to improve and exactly how to do it.

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What Does a 580 Credit Score Get You?

Note: It may be possible to qualify for a personal loan or auto loan in some cases, but the terms are unlikely to be attractive. If you apply for the average offer, you’re more likely to be rejected than approved.

This content is not provided or commissioned by any issuer. Opinions expressed here are the author’s alone, not those of an issuer, and have not been reviewed, approved or otherwise endorsed by an issuer.

Popular Credit Cards for a 580 Credit Score

How to Improve a 580 Credit Score

1. Get Personalized Advice From WalletHub

   The best approach to improving a 580 credit score is to check the Credit Analysis page of your free WalletHub account. This will tell you what problem areas to focus on and how to correct them.

   If your grades are similar to those earned by the average person with a 600 credit score, for example, improving your credit utilization and paying your bills by the due date every month should be among the first orders of business.

2. Improve Your Credit Utilization

   There are four ways to improve your credit utilization, which refers to how the balances listed on your credit card statements each month compare to the credit limits for those accounts. You can spend less, make bigger payments or pay your bill multiple times per month to bring down your statement balances. You can also request higher credit limits, but that’s harder for you to control.

3. Use a Secured Credit Card Responsibly

   The most reliable way to begin rebuilding bad credit is to place a down payment on a secured credit card. The deposit reduces the issuer’s risk, making it possible to get approved no matter how low your score might be. Then, simply keeping your account in good standing will result in positive information being added to your credit report month after month.

   You could try a credit card for people with fair credit first, but if you don’t get approved, go the secured-card route. Repeatedly getting rejected will result in multiple hard inquiries on your credit report and only make rebuilding harder.

4. Pay All Your Bills By the Due Date

   On-time payments are important because your payment history accounts for a lot of your credit score, and success in this area is directly within your control. The best approach is to set up automatic monthly payments from a bank account. This will at least save your score from taking a hit just because you lose track of time.

5. Keep Tabs on Your Credit Report

   No matter what your credit score is, it’s also a good idea to regularly review your credit report for errors and dispute any you find. Doing that and signing up for a free 24/7 credit monitoring service will help keep you and your credit score safe.

Sample Scorecard for Someone With a 580 Credit Score

Below, you can get a feel for how your credit analysis might look as well as what your other top credit-improvement priorities might be.

• Payment History: D = Less than 98% on-time payments
• Credit Utilization: C = 10% - 29% utilization
• Debt Load: B = 0.36 - 0.42 debt-to-income ratio
• Account Age: B = Average loan / line of credit is 7 - 9 years old
• Account Diversity: C = 2 account types or fewer than 5 total accounts
• Hard Credit Inquiries: A = Fewer than 3 in past 24 months
• Collections Accounts & Public Records: B = 1 collections account / public record

Top 10 Resources for a 580 Credit Score

1. Why Did My Credit Score Drop? Top 10 Causes
2. Free Credit Score Simulator
6. How To Improve Your Credit Utilization
10. Bad Credit Guide

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