With a credit score of 600, which is considered fair or the upper limit of a bad credit score, there are still options available to obtain credit cards and loans. However, it’s important to note that the terms and conditions may not be as favorable compared to individuals with higher credit scores.
If you look at the most commonly used scoring models, this is how your score looks on them: a 600 credit score in the FICO® score model is considered fair as it falls within the range of 580-669. With VantageScore®, 600 is the upper limit of a bad credit score (500-600).
You can still get approvals for credit cards and loans with this score but with certain conditions. The first thing you should focus on with any credit card or loan you get is to build your credit score to above 700. This increases the options and likelihood of approval for major loans and credit cards with more rewards.
- Secured credit card: Getting a secured credit card is your best bet with a 600 score because it comes with a security deposit which doubles as your credit limit. Secured credit cards are meant for people with a short credit history and bad credit. This is a good option to build your credit score.
- Unsecured credit card: It is possible to get approved for some unsecured cards with a 600 score. But the terms may not be favorable, as they may have higher interest rates and limited rewards. It’s important to review the terms and conditions carefully and compare options to find the most suitable card.
- Home loan: You may be able to get approvals for an FHA loan with a 600 credit score because these are government-backed loans. Lenders consider them less risky and so people with lower credit scores can apply for these loans.
- Personal and auto loans: Obtaining personal or auto loans with a credit score of 600 may be more challenging. You may be able to get them with a cosigner who has a good credit history, for instance. Your loan application approval will also depend on your credit report, debt-to-income ratio, and employment history.
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