Are you wondering just how far a 580 credit score is going to take you? Seriously, think about it. Is it possible to get a mortgage? How fast could you secure a car loan with score of 580?
Consider this fact: According to the FICO method of rating your credit – scores range from 300 to 850. So a score of 580 would be considered middle ground – "C" grade to be clearer. Make no mistake about it, even though you may qualify for a mortgage or a car loan – you most likely will not receive the best interest rates. The interest rates you will come up against are going to be high. You may even be required to get a co-signer.
Here are some examples of the basic grading system that the credit scoring system goes by.
720 or higher is considered A Grade.
· 620-719 is considered B Grade.
580 to 619 is considered C Grade.
550 to 570 is considered D Grade.
550 or lower is considered F Grade.
As you might have noticed, the higher your score, the better your grade, and the better your grade, the better the terms of your loan or credit card agreement. To be frank, a 580 credit score could cause you to pay more out of pocket expenses, so it's in your best interests to do whatever you need to do to increase your score.
Here's some tips and tricks to make that happen:
1. Order a copy of your credit report and check for any errors. Finding and correcting just one error could cause you rating to jump 30 points. This could save you thousands of dollars over the life of a loan.
2. Keep your head above water and keep credit card balances low. The lower your balance the better.
3. Refrain from opening new accounts. In the wink of an eye, your credit rating could drop because of the additional inquiries that show up.
Basically, a score of 580 isn't going to get you the best deals on the market. So you'll need to start taking steps to increase it so you'll get better interest rates. The effort is certainly worth it.