There is not much difference between a 580 and a 600 credit score as far as perceptions of creditworthiness go. Both scores fall under the “fair” FICO® Score and “poor” VantageScore® ranges. Lenders look at your credit score to get a sense of how prompt you are with paying bills, or how likely you are to default on any loan or credit card payments.
With 600 being a fair FICO Score, there are still several credit card companies and loan lenders that may be willing to approve your loans or credit card. Some of them are specifically designed to help you build credit, like credit builder loans and secured credit cards.
With a 580 score, you can also get government-insured mortgage loans from the Federal Housing Administration (FHA), the United States Department of Agriculture (USDA), and the United States Department of Veterans Affairs (VA). Your credit score is just one factor that helps lenders decide whether to approve your application or not. Some lenders may reject your application even if you have a good credit score if your debt-to-income ratio is high. That is if you have more debt than income.
Before applying for any credit card or loan, it is advisable to follow good credit behavior and improve your score to at least 700. During the time it takes for you to increase your credit score, you can also save up some money for a down payment on a car or home so that you can get lower interest rates on loans.
.
