A credit score of 575 is a “bad” credit score, unfortunately. It is 125 points away from being a “good” credit score, which many people use as a benchmark, and 65 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 575 Credit Score
Below, you can learn more about what a 575 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 575 Credit Score Get You?
Type of Credit | Do You Qualify? |
Secured Credit Card | YES |
Unsecured Credit Card | YES |
Home Loan | YES (FHA Loan) |
Personal Loan | MAYBE |
Auto Loan | MAYBE |
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 575 Credit Score
Rates & FeesBest Overall:Discover it® Secured Credit CardDiscover it® Secured Credit CardLearn MoreLearn Moreon issuer's website
No Credit Check:OpenSky® Secured Visa® Credit CardOpenSky® Secured Visa® Credit CardLearn MoreLearn Moreon issuer's website
Unsecured:Credit One Bank® Platinum Visa® for Rebuilding CreditCredit One Bank® Platinum Visa® for Rebuilding CreditLearn MoreLearn Moreon issuer's website
Rates & FeesRewards & No Annual Fee:Capital One Quicksilver Secured Cash Rewards Credit CardCapital One Quicksilver Secured Cash Rewards Credit CardLearn MoreLearn Moreon issuer's website
How to Improve a 575 Credit Score
Get Personalized Advice From WalletHub
The best approach to improving a 575 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.
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.
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.
See AlsoIs a 30,000 Credit Limit Good?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.
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.
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 575 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 575 Credit Score
- Why Did My Credit Score Drop? Top 10 Causes
- Free Credit Score Simulator
- What’s Included in Your Credit Report & When Does It Get Updated?
- How to Rebuild Credit in 7 Steps & How Long It Will Take
- Why On-Time Bill Payments Are Important & How To Never Miss A Due Date
- How To Improve Your Credit Utilization
- How To Pay Off Credit Card Debt: The Best Way & Tips
- Most Common Credit Card Mistakes & Tips to Avoid Them
- What Is a Secured Credit Card? Definition & Examples
- Bad Credit Guide
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As an expert in personal finance and credit scoring, I have a comprehensive understanding of credit scores and their implications on financial well-being. My knowledge extends to practical strategies for improving credit scores and navigating the intricacies of borrowing options. Let's delve into the key concepts covered in the provided article.
1. Credit Score Basics:
- A credit score of 575 is categorized as a "bad" credit score.
- It is emphasized that this score is 125 points away from a "good" credit score and 65 points from a "fair" score.
2. Borrowing Options with a 575 Credit Score:
- While most borrowing options are available, the terms are unlikely to be attractive.
- Borrowing options may include small amounts with certain unsecured credit cards or a personal loan for damaged credit.
- However, the interest rates are expected to be high, making approval challenging.
3. Improving a 575 Credit Score:
- The recommended strategy is to apply for a secured credit card and ensure timely bill payments every month.
- The article suggests that using a secured credit card responsibly is a reliable way to begin rebuilding bad credit.
4. Credit Score Impact on Loan Qualification:
- The article provides a breakdown of various types of credit and whether one qualifies with a 575 credit score:
- Secured Credit Card: Yes
- Unsecured Credit Card: Yes
- Home Loan (FHA Loan): Yes
- Personal Loan: Maybe
- Auto Loan: Maybe
5. Recommended Credit Cards for a 575 Credit Score:
- The article lists several credit cards that may be suitable for individuals with a 575 credit score. These include:
- Discover it® Secured Credit Card
- OpenSky® Secured Visa® Credit Card
- Credit One Bank® Platinum Visa® for Rebuilding Credit
- Capital One Quicksilver Secured Cash Rewards Credit Card
6. Strategies to Improve Credit Score:
- The article suggests practical steps to improve a 575 credit score:
- Improve Credit Utilization: Ways to manage balances and credit limits effectively.
- Use a Secured Credit Card Responsibly: How a secured credit card can positively impact credit history.
- Pay All Bills By the Due Date: Emphasizes the importance of on-time payments for a positive payment history.
- Keep Tabs on Your Credit Report: Regularly reviewing and disputing errors to maintain a healthy credit score.
7. Sample Scorecard for a 575 Credit Score:
- The article includes a sample credit scorecard, outlining different aspects such as payment history, credit utilization, debt load, account age, account diversity, hard credit inquiries, and collections accounts/public records.
8. Additional Resources:
- The article provides a list of top 10 resources for individuals with a 575 credit score, covering topics like reasons for credit score drops, credit score simulators, credit report contents, rebuilding credit steps, and more.
In conclusion, the information presented in the article is geared towards helping individuals with a 575 credit score understand their financial standing, explore borrowing options, and implement effective strategies for credit score improvement.