WHAT DOES A CREDIT SCORE 580 MEAN?

A credit score of 580 is not a  “good score” It’s not even “fair.” Rather, a 580 credit score is actually considered “bad,” according to the standard 300 to 850 credit-score scale.

 A 580 score will make it difficult to get approved for a decent loan or line of credit and could even prevent you from renting an apartment or landing certain jobs.

You will also pay thousands of dollars each year compared to someone with a score just 120 points higher.

Tip: The best 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 is.

COMPARE YOUR 580 SCORE TO OTHER CREDIT SCORES

HOW can you IMPROVE A 580 CREDIT SCORE?

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. 

credit utilization which refers to how the

balances listed on your credit card statements each month compare to the credit limits for those accounts.

Spend less, make bigger payments or pay your bill multiple times per month to bring down your debt

CREDIT SCORE CREDIT RATING
580 POOR CREDIT
700 GOOD CREDIT
780 EXCELLENT CREDIT
800 PERFECT CREDIT
HOW TO IMPROVE A 580 CREDIT SCORE
1. ALWAYS PAY YOUR BILLS ON TIME:

Payment history counts the most — 35%

when it comes to calculating your credit score.

Plus, how well you keep up with your payments is reflected in your credit report, which lenders

use to gauge your creditworthiness

Missed payments are the trademark of a

risky borrower, indicating irresponsibility and

potential financial distress.

2. REDUCE CREDIT CARD DEBT

Carrying a large amount of credit card

debt is a huge financial liability that can

backfire and cause you to miss a payment,

and lenders know it.

Reducing credit card debt can decrease your credit utilization which is a key ingredient in your credit score. 

3. MONITOR YOUR CREDIT

Keeping tabs on your credit by regularly

viewing your credit reports and scores is

a key to getting and keeping a great score.

By monitoring, you can detect errors or

fraudulent activity as early as possible

so you can take action to protect your credit.

HOW TO IMPROVE YOUR CREDIT SCORE
FROM 580 TO 700

1. LIMIT YOUR CREDIT UTILIZATION

To determine your credit utilization, divide how

much you owe by your total credit limit.

Calculate credit utilization on each of your

credit card accounts, as well as an overall

calculation across all accounts.

People with credit scores of 800 and

above use less than 5% of their available credit, 

while people with scores from 701 to 750 have

25% credit utilization. 

2. FEW HARD INQUIRIES

Hard inquiries occur when you apply for a

loan or credit card and the lender initiates

a hard pull on your credit.

Unfortunately, each hard inquiry can

lower your credit score by a few points,

which could last around six months to a year.

3. CREDIT AGE

People with longer credit histories tend to

have higher scores than those with more

limited credit histories.

Pay all other loans, bills, and debts on time.  All of these will be reflected in your credit report.  It does take time, but everyone with high credit score today started somewhere.  It just takes diligence and commitment.

HOW LONG WILL IT TAKE TO IMPROVE A 580 CREDIT SCORE?

With regular payments and following the above-mentioned steps, you can gradually improve your credit score in a reasonably short amount of time.

IN SHORT PAY ALL YOUR BILLS ON TIME EVERY MONTH AND MANAGE YOUR FINANCES

RESPONSIBLY IF YOU WANT TO IMPROVE YOUR 580  CREDIT SCORE. 

Here’s a List of Common Credit Occurrences and Length of Time They Remain on a Credit Report:

Actual inquiries made by credit grantors minimum of --3 years 

Credit history and banking information --6 years from the last activity date 

Bankruptcies -6 years from the date of discharge (1st bankruptcy) 

Judgments, foreclosures, garnishments-- 6 years from the date filed

Collections-- 6 years from the date of last activity 

Secured loans --6 years from the date filed

 Credit Counseling, Consumer Proposals to creditors,

 Orderly Payment of Debt (OPD), Voluntary Deposit informatioN--- 3 years from the date settled or completed

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A credit score of 580 should qualify you for loans with high interest rates