Is 590 a Good Credit Score? Everything You Need to Know

A credit score of 590 falls into the "fair" or "poor" category, indicating a need for improvement. While not ideal for securing the best loan terms, it doesn't automatically disqualify you from all credit opportunities. Understanding its implications is the first step toward building a stronger financial future.

Understanding Credit Scores

Credit scores are numerical representations of your creditworthiness, a three-digit number that lenders use to assess the risk of lending you money. These scores are calculated by credit bureaus, primarily Experian, Equifax, and TransUnion, based on the information in your credit reports. The most widely used scoring models are FICO and VantageScore, which have slightly different methodologies but generally produce similar results. A good credit score signifies that you have a history of managing debt responsibly, making timely payments, and keeping credit utilization low. Conversely, a lower score suggests potential risks, such as missed payments, high debt levels, or a limited credit history. In 2025, the importance of a strong credit score continues to be paramount for accessing various financial products and services, from mortgages and auto loans to rental agreements and even some job applications.

The Importance of Credit Scores in 2025

In today's financial landscape, your credit score is more than just a number; it's a critical determinant of your financial opportunities. Lenders, landlords, insurance companies, and even employers increasingly rely on credit scores to gauge reliability and risk. A higher score can unlock lower interest rates on loans, saving you thousands of dollars over the life of a mortgage or car loan. It can also lead to easier approval for credit cards, rental apartments, and even utility services without requiring hefty security deposits. Conversely, a low score can result in higher interest rates, larger down payments, denied applications, and limited choices. For instance, a person with an excellent credit score might secure an auto loan at 3% APR, while someone with a score of 590 could face rates of 15% or higher for the same vehicle. This significant difference underscores why understanding and actively managing your credit score is a vital component of sound personal finance in 2025.

How Credit Scores Are Calculated

The exact algorithms used by FICO and VantageScore are proprietary, but they broadly consider several key factors. These factors are weighted differently, meaning some aspects of your credit history have a greater impact than others. Understanding these components is crucial for anyone looking to improve their credit score. The primary elements include payment history, amounts owed (credit utilization), length of credit history, credit mix, and new credit. Each of these plays a significant role in painting a picture of your financial behavior for lenders.

Payment History: The Most Crucial Factor

This is the single most important factor in your credit score, typically accounting for about 35% of your FICO score. It reflects whether you pay your bills on time. Late payments, defaults, bankruptcies, and collections all negatively impact this aspect of your score. Even a single 30-day late payment can have a noticeable effect, and more severe delinquencies can significantly lower your score.

Amounts Owed (Credit Utilization): A Significant Influence

Accounting for roughly 30% of your FICO score, this refers to the amount of credit you are using compared to your total available credit. This is often expressed as a credit utilization ratio. Keeping this ratio low, ideally below 30% and even better below 10%, is crucial. For example, if you have a credit card with a $10,000 limit and you owe $5,000 on it, your utilization is 50%, which can hurt your score. If you only owe $1,000, your utilization is 10%, which is much more favorable.

Length of Credit History: Time Matters

This factor, making up about 15% of your FICO score, considers how long your credit accounts have been open and the average age of your accounts. A longer credit history generally indicates more experience managing credit, which is viewed positively by lenders. This is why it's often advised not to close old, unused credit cards, as doing so can shorten your average account age.

Credit Mix: Diversity Can Be Good

Making up about 10% of your FICO score, this factor looks at the different types of credit you have. This includes revolving credit (like credit cards) and installment loans (like mortgages or auto loans). Having a mix of these can be beneficial, as it shows you can manage various types of credit responsibly. However, this factor is less critical than payment history or credit utilization.

New Credit: Opening Too Many Accounts

This component, also around 10% of your FICO score, considers how many new credit accounts you've opened recently and how many hard inquiries you have on your credit report. Opening several new accounts in a short period can signal increased risk to lenders, as it might suggest financial distress or an attempt to take on too much debt quickly. A hard inquiry occurs when a lender checks your credit as part of a credit application.

Is 590 a Good Credit Score? The Verdict

The direct answer to "Is 590 a good credit score?" is generally no. In the context of credit scoring, a 590 score typically falls into the "fair" or "poor" category, depending on the specific scoring model used. While it's not the lowest possible score, it's significantly below the "good" or "excellent" ranges that lenders prefer. This means that while you might still be approved for some credit products, you will likely face higher interest rates, stricter terms, and fewer options compared to individuals with higher scores. It's a score that signals to lenders that there have been some challenges in managing credit responsibly in the past, and they will price that perceived risk accordingly.

Understanding the "Fair" and "Poor" Credit Designations

Credit scoring models categorize scores into ranges to help lenders quickly assess risk. While the exact boundaries can vary slightly between FICO and VantageScore, and even between different versions of these models, a 590 score consistently lands in the lower tiers. For example, a common FICO score range might look like this: Excellent (800-850), Very Good (740-799), Good (670-739), Fair (580-669), and Poor (300-579). In this scenario, a 590 would be at the very low end of the "Fair" range, bordering on "Poor." This designation indicates a history of credit issues, such as late payments, high credit utilization, or collections, that have negatively impacted the score. Lenders view this score as a higher risk, meaning they expect a greater chance of default compared to someone with a "Good" or "Excellent" score.

Why 590 Isn't Considered "Good" by Lenders

Lenders use credit scores as a primary tool to mitigate risk. A "good" credit score (generally considered 670 and above) suggests a borrower has a proven track record of responsible credit management. This translates to a lower probability of default. When a borrower has a score of 590, the lender perceives a higher risk. This increased risk is then offset by charging a higher interest rate. For example, a mortgage lender might offer a 30-year fixed-rate mortgage at 6.5% to someone with a 740 credit score, but the same loan might come with an 8.5% interest rate for someone with a 590 score. Over 30 years, this difference in interest can amount to tens of thousands of dollars. Beyond interest rates, lenders may also require larger down payments, co-signers, or offer lower credit limits on credit cards.

The Difference Between "Fair" and "Poor"

While both "fair" and "poor" scores present challenges, the distinction lies in the severity of the credit issues reflected. A "poor" score (often below 580) usually indicates significant credit problems, such as multiple late payments, charged-off accounts, or bankruptcy. A "fair" score, like 590, suggests that while there have been issues, they might be less severe or fewer in number. For instance, a few 30-day late payments might place you in the "fair" category, whereas a foreclosure or a recent bankruptcy would likely push you into "poor." The practical difference for a borrower is that a "fair" score might still qualify for some credit products, albeit with unfavorable terms, while a "poor" score might require more intensive credit repair or the use of specialized, high-cost lending options.

Credit Score Ranges and What They Mean

Understanding the various credit score ranges is fundamental to grasping where a 590 score stands and what it signifies. These ranges are not rigid laws but rather widely accepted benchmarks used by lenders and financial institutions. They provide a quick snapshot of a borrower's creditworthiness, allowing for swift decision-making in lending processes. In 2025, these ranges remain critical for navigating the financial marketplace.

FICO Score Ranges (Commonly Used)

The FICO score is the most prevalent credit scoring model. While there are various FICO versions, a general breakdown of ranges is as follows:

800-850: Exceptional/Superprime - This is the top tier, indicating an extremely low risk. Borrowers in this range receive the best interest rates and terms.
740-799: Very Good/Prime Plus - Still an excellent range, offering favorable lending terms.
670-739: Good/Prime - This is considered a solid score, allowing access to most credit products with competitive rates.
580-669: Fair/Near-Prime - This is where a 590 score resides. It signifies a higher risk, leading to less favorable terms and potentially higher interest rates. Approvals are possible but not guaranteed, and terms will be less attractive.
300-579: Poor/Subprime - This range indicates significant credit risk. Lenders are very hesitant to lend to individuals in this category, and if they do, it comes with extremely high interest rates and fees.

VantageScore Ranges (An Alternative Model)

VantageScore is another widely used credit scoring model, developed by the three major credit bureaus. Its ranges are also tiered:

781-850: Excellent - Similar to FICO's exceptional range.
661-780: Good - A strong score, generally considered prime.
601-660: Fair - This range encompasses a 590 score. It suggests a moderate level of risk.
500-600: Poor - This range indicates significant credit challenges.
300-499: Very Poor - The lowest tier, representing the highest risk.

As you can see, a 590 score falls into the "Fair" category for both major models, highlighting its position as a score that requires attention and improvement.

What These Ranges Mean for Borrowers

The implications of being in a particular credit score range are significant. For someone with a 590 score:

Loan Approvals: While not impossible, loan approvals may be more challenging. Lenders might require more documentation, a co-signer, or a larger down payment.
Interest Rates: Expect significantly higher interest rates on loans and credit cards. This is the primary way lenders compensate for the increased risk associated with lower scores.
Credit Limits: Credit card approvals might come with lower credit limits.
Rental Applications: Landlords often check credit scores, and a 590 might lead to rejection or require a larger security deposit.
Insurance Premiums: In many states, insurance companies use credit-based insurance scores, and a lower score can result in higher premiums for auto and homeowners insurance.

Factors That Influence Your Credit Score

Understanding the components that make up your credit score is the first step toward improving it. A 590 score is a reflection of past credit behavior, and by addressing the underlying issues, you can work towards a better score. In 2025, the same fundamental factors continue to hold sway.

Payment History: The Foundation of Your Score

As mentioned, payment history is the most critical factor. Late payments, even by a few days, can negatively impact your score. A pattern of late payments, especially those 30, 60, or 90 days past due, will significantly lower your score. Collections and charge-offs are even more damaging. For a 590 score, it's highly probable that late payments or other payment delinquencies are a primary contributor.

Credit Utilization Ratio: Managing Your Debt Load

This ratio, calculated by dividing the amount of credit you're using by your total available credit, is another major influencer. High credit utilization suggests you might be overextended financially. For example, if you have a credit card with a $1,000 limit and you owe $800, your utilization is 80%. Ideally, this ratio should be kept below 30%, and even lower (below 10%) for optimal results. A 590 score could be a result of consistently high credit utilization across multiple cards.

Length of Credit History: Building a Track Record

A longer credit history generally benefits your score. This is because it provides lenders with more data points to assess your long-term credit management habits. If your credit history is relatively short, or if you've only recently started using credit, this can contribute to a lower score, especially if combined with other negative factors. Closing old accounts can also shorten your average credit history length.

Credit Mix: The Variety of Your Credit Accounts

Having a mix of credit types, such as revolving credit (credit cards) and installment loans (mortgages, auto loans), can be beneficial. It demonstrates your ability to manage different forms of debt. However, this is a less significant factor than payment history or utilization. For someone with a 590 score, focusing on improving payment history and utilization will yield far greater results than trying to diversify their credit mix.

New Credit and Inquiries: Recent Activity

Opening multiple new credit accounts in a short period can signal higher risk. Each time you apply for credit, a "hard inquiry" is placed on your credit report, which can slightly lower your score. While a few inquiries won't drastically affect your score, a pattern of frequent applications might. If your 590 score is due to recent financial struggles, you might have a higher number of inquiries from attempting to secure new credit.

Public Records and Negative Information

Negative information on your credit report, such as bankruptcies, foreclosures, judgments, or tax liens, can severely damage your credit score. These are serious financial events that lenders view with significant caution. The presence of such items would almost certainly result in a score in the 590 range or lower.

The Impact of a 590 Credit Score

A 590 credit score presents a distinct set of challenges and limitations in the financial world. It's a score that signals to lenders that you represent a higher risk, and this perception directly translates into tangible consequences for your borrowing power and financial opportunities. In 2025, navigating these impacts requires a clear understanding of what to expect.

Higher Interest Rates on Loans

This is perhaps the most immediate and significant impact. Lenders compensate for the increased risk of default associated with lower credit scores by charging higher interest rates. For example, consider a $30,000 auto loan over five years:

Credit Score	Estimated APR	Monthly Payment	Total Interest Paid
740+ (Good)	6.0%	$584	$5,040
670-739 (Good)	8.0%	$613	$6,780
580-669 (Fair)	12.0%	$665	$9,900
579- (Poor)	18.0%	$727	$13,620

As you can see, a 590 score could result in paying nearly double the interest compared to someone with a good score. This difference is amplified for larger loans like mortgages.

Limited Access to Credit Products

Many prime credit cards and unsecured personal loans are off-limits to individuals with a 590 credit score. Lenders often have minimum score requirements that a 590 score doesn't meet. This means you might struggle to get approved for credit cards that offer rewards, travel points, or introductory 0% APR periods. Similarly, obtaining an unsecured personal loan for debt consolidation or a large purchase becomes more difficult.

Higher Security Deposits and Fees

Beyond loans, a 590 score can affect other financial services. Utility companies, cell phone providers, and even landlords may require a security deposit if your credit score is below a certain threshold. This deposit can range from tens to hundreds of dollars, representing an upfront cost that wouldn't be necessary with a better credit score. Some services might also charge higher monthly fees.

Difficulty Renting an Apartment

Landlords frequently run credit checks on prospective tenants to assess their reliability in paying rent. A 590 score might be considered too risky, leading to an application rejection. If approved, you might be asked to provide a larger security deposit or have a co-signer on the lease, adding financial burdens.

Impact on Insurance Premiums

In many states, insurance companies use credit-based insurance scores to help set premiums for auto and homeowners insurance. A lower credit score can lead to higher insurance costs. This is because statistical data suggests a correlation between credit management and the likelihood of filing claims. For instance, a study by the Consumer Federation of America found that drivers with poor credit could pay up to 77% more for auto insurance than those with excellent credit.

Challenges with Major Purchases

Securing financing for significant purchases like a car or a home becomes considerably more challenging and expensive with a 590 credit score. Auto loan approvals might come with very high interest rates, making the overall cost of the vehicle much higher. For mortgages, a 590 score is often below the minimum requirement for conventional loans, pushing borrowers towards FHA loans or other programs that may have higher mortgage insurance premiums or specific eligibility criteria.

Strategies to Improve a 590 Credit Score

The good news is that a 590 credit score is not a permanent situation. With consistent effort and smart financial habits, it's possible to significantly improve your score over time. The key is to address the factors that are currently holding your score down. In 2025, these strategies remain the most effective for credit repair and enhancement.

1. Pay All Bills On Time, Every Time

This is the single most impactful step you can take. Make it a priority to pay all your bills – credit cards, loans, utilities, rent – by their due dates. Set up automatic payments or reminders to ensure you never miss a payment. Even one late payment can significantly damage your score, so consistency is crucial.

2. Reduce Your Credit Utilization Ratio

Aim to keep your credit utilization below 30%, and ideally below 10%. If you have high balances on your credit cards, focus on paying them down. Consider the following:

Prioritize High-Interest Debt: Pay down the cards with the highest interest rates first (the "avalanche method") to save money on interest, or pay down the smallest balances first (the "snowball method") for psychological wins.
Request a Credit Limit Increase: If your payment history is good, you can request a credit limit increase from your card issuer. This will lower your utilization ratio if your spending remains the same.
Don't Close Unused Cards: As long as they don't have annual fees, keeping older, unused credit cards open can help maintain a lower utilization ratio and a longer credit history.

3. Dispute Errors on Your Credit Reports

Mistakes happen. Obtain copies of your credit reports from Experian, Equifax, and TransUnion (you can get free reports annually at AnnualCreditReport.com). Review them carefully for any inaccuracies, such as incorrect late payments, accounts that aren't yours, or wrong balances. If you find errors, dispute them with the credit bureau. Correcting errors can lead to an immediate score improvement.

4. Avoid Opening New Credit Accounts Unnecessarily

While building credit history is important, opening too many new accounts in a short period can negatively impact your score due to multiple hard inquiries and a shorter average account age. Focus on managing your existing credit responsibly before seeking new credit.

5. Consider a Secured Credit Card

If you're struggling to get approved for a traditional credit card, a secured credit card can be an excellent tool. You provide a cash deposit, which then becomes your credit limit. By using this card responsibly and making on-time payments, you can build a positive payment history and gradually improve your credit score. Many secured cards report to all three major credit bureaus, helping you establish credit.

6. Become an Authorized User

If you have a trusted friend or family member with excellent credit, they might be willing to add you as an authorized user on one of their credit cards. Their positive payment history on that account can then be reflected on your credit report, potentially boosting your score. However, ensure the primary cardholder manages the account responsibly, as their negative activity could also affect you.

7. Set Up Payment Reminders and Budgeting Tools

Utilize budgeting apps, calendar alerts, or automatic payments to ensure you never miss a due date. A clear understanding of your income and expenses through budgeting can prevent you from overspending and falling behind on payments.

8. Be Patient and Consistent

Improving a credit score takes time. Negative information typically stays on your credit report for seven years (though its impact diminishes over time), and bankruptcies can remain for up to 10 years. Focus on building a consistent history of responsible credit behavior, and your score will gradually rise.

Alternative Lending Options for a 590 Score

While a 590 credit score limits your options for prime lending, it doesn't mean you have no access to credit. Several alternative lending options exist, though they often come with higher costs. Understanding these can help you secure necessary funds while you work on improving your score.

Secured Loans

Secured loans require you to pledge an asset as collateral. This reduces the lender's risk, making them more willing to lend to individuals with lower credit scores. Examples include:

Auto Loans: If you have a vehicle, you might be able to use it as collateral for a loan.
Home Equity Loans or HELOCs: If you own a home with equity, you can borrow against it. However, be aware that defaulting on these loans can lead to foreclosure.

Credit-Builder Loans

These are small loans specifically designed to help individuals build or rebuild credit. The loan amount is typically held in a savings account by the lender and released to you after you've made all the payments. Your on-time payments are reported to the credit bureaus, helping to improve your score. They are often offered by credit unions and community banks.

Co-signer Loans

If you can find a creditworthy individual (a friend or family member) willing to co-sign your loan application, it can significantly increase your chances of approval and potentially secure a better interest rate. The co-signer is equally responsible for the debt, so they must be confident in your ability to repay. This is a significant favor, so ensure you can meet your obligations to protect your co-signer's credit.

Pawn Shop Loans

These are short-term loans secured by personal property. You bring an item of value (e.g., jewelry, electronics), and the pawn shop lends you a percentage of its value. If you repay the loan plus interest, you get your item back. If not, the pawn shop keeps and sells the item. These loans often have very high interest rates and should be a last resort.

Payday Loans and Cash Advances (Use with Extreme Caution)

Payday loans offer a short-term cash advance, typically due on your next payday. They are notorious for extremely high fees and Annual Percentage Rates (APRs) that can exceed 400%. Cash advances on credit cards are also very expensive, with high fees and immediate interest accrual. These options should be avoided whenever possible due to their predatory nature and potential to trap borrowers in a cycle of debt. If you must use them, have a clear repayment plan.

Online Lenders Specializing in Subprime Borrowers

Some online lenders cater to borrowers with lower credit scores. While they offer more accessibility, their interest rates and fees are generally higher than traditional banks. Thoroughly research any online lender, read reviews, and compare offers before committing. Look for lenders that report to the credit bureaus to ensure your payments contribute to credit building.

The Role of Credit Monitoring

Regularly monitoring your credit is an essential practice for anyone looking to understand, maintain, or improve their credit score. For individuals with a 590 score, it's particularly crucial to keep a close eye on their credit reports and scores to track progress and identify any new issues. In 2025, credit monitoring services and free tools are more accessible than ever.

Why Monitoring is Crucial for a 590 Score

With a 590 credit score, you are more susceptible to predatory lending practices and identity theft. Monitoring your credit allows you to:

Track Your Progress: See how your efforts to improve your score are paying off.
Detect Errors: Catch and dispute any inaccuracies on your credit report promptly.
Identify Fraud: Spot unauthorized accounts or activity that could indicate identity theft.
Stay Informed: Understand the factors influencing your score and adjust your financial behavior accordingly.

How to Monitor Your Credit

There are several ways to monitor your credit:

Free Annual Credit Reports: As mentioned, you are entitled to one free credit report from each of the three major bureaus (Experian, Equifax, TransUnion) annually at AnnualCreditReport.com. This is the best way to get a comprehensive look at your credit history.
Credit Card Issuer Services: Many credit card companies offer free credit score monitoring as a benefit to cardholders. This typically provides a FICO or VantageScore and a summary of your credit report.
Free Credit Monitoring Services: Numerous reputable companies offer free credit monitoring, often by providing access to your VantageScore and credit report summaries. Some popular options include Credit Karma, Credit Sesame, and others.
Paid Credit Monitoring Services: These services often offer more robust features, such as daily credit score updates, identity theft insurance, and alerts for significant changes to your credit report.

For someone with a 590 score, utilizing free resources like annual credit reports and credit card issuer services is a great starting point. Regularly reviewing these resources will provide valuable insights into your credit health.

Understanding Your Credit Report vs. Your Credit Score

It's important to distinguish between your credit report and your credit score. Your credit report is a detailed history of your credit activity, including all your accounts, payment history, inquiries, and public records. Your credit score is a three-digit number derived from the information in your credit report. While many monitoring services provide your score, it's essential to periodically pull your full credit reports to ensure the accuracy of the underlying data. A change in your score is often a symptom of something on your report; understanding the report helps you address the root cause.

Future Outlook and Long-Term Credit Health

Improving your credit score from 590 to a more favorable range is an achievable goal, but it requires a sustained commitment to responsible financial practices. The journey from a "fair" score to a "good" or "excellent" score is a marathon, not a sprint, and the rewards are substantial. In 2025, focusing on long-term credit health is more important than ever for financial security and opportunity.

The Benefits of a Higher Credit Score

As you diligently work to improve your credit, you'll begin to see tangible benefits. These include:

Lower Interest Rates: This is the most significant advantage, saving you thousands of dollars on loans and credit cards over time.
Easier Loan Approvals: You'll qualify for a wider range of loans and credit cards, with more favorable terms and higher credit limits.
Reduced Fees: Many service providers will waive or reduce security deposits and fees.
Better Insurance Rates: Your premiums for auto and homeowners insurance will likely decrease.
Improved Rental Opportunities: You'll have a better chance of being approved for rental properties.
Increased Financial Flexibility: A strong credit score provides a safety net and opens doors to financial opportunities when you need them most.

Maintaining Good Credit Habits

Once you've achieved a higher credit score, the work isn't over. Maintaining good credit habits is essential to prevent your score from declining. This involves continuing to:

Pay all bills on time.
Keep credit utilization low.
Avoid opening too many new accounts at once.
Monitor your credit reports regularly for errors or fraud.
Review your credit accounts periodically.

Building a Solid Financial Future

A strong credit score is a cornerstone of a healthy financial future. It empowers you to make significant life choices, such as buying a home, purchasing a reliable vehicle, or starting a business, with greater ease and at a lower cost. By understanding the factors that influence your credit score and committing to consistent, responsible financial behavior, you can transform your financial standing. A score of 590 is a stepping stone, not a destination. With the right strategies and patience, you can build a credit profile that supports your financial goals for years to come.

In conclusion, a 590 credit score is not considered good by lenders and indicates a need for improvement. While it may limit your access to favorable credit terms and products, it is a score that can be significantly improved with consistent effort. By focusing on timely payments, reducing credit utilization, disputing errors, and employing smart credit-building strategies like secured cards or credit-builder loans, you can steadily raise your score. Monitoring your credit regularly is key to tracking progress and safeguarding against issues. The long-term benefits of a stronger credit score—lower interest rates, easier approvals, and greater financial flexibility—make the effort well worth it, paving the way for a more secure and prosperous financial future.