560 credit score

560 Credit Score: Beyond Subprime

It’s that time again, where we look at a specific credit score.

Today’s lucky three-digit number is “560.”

As always, we need to know which credit score scale we’re working with, as that will make a difference.

Assuming we’re talking about the more common Fico score, which ranges from 300-850, a 560 credit score would put you between a rock and a hard place.

560 Fico Score Below Subprime

In simple terms, you’d have what I consider a bad credit score, as many lenders consider sub-620 credit scores “subprime.”

There’s a good chance you’ve got late payments on your credit report, and perhaps a collection or charge-off.

You may also have high balances and a lack of available credit.

Or it could be that the little credit history you do have just isn’t all that attractive.

560 Credit Score is an “F”

If you’ve got a 560 VantageScore, you’d be even worse off, as it ranges from 501-990 and scores below 599 are considered an “F.”

I think we all know an “F” is as worse as it gets in the letter grade department, so you’ll be in a lot of trouble here.

In either case, it’s recommended that you take a hard look at your credit report to determine if everything is reporting correctly.

There’s a chance you may have an erroneous medical collection or some other mistake holding you back. If this is the case, you’ll want to dispute the affected tradeline immediately.

Removing such an item could improve your credit score tremendously, and perhaps even put you back in good credit score territory.

However, you may just have to come to terms with your bad credit if it’s error-free.

That doesn’t mean to just accept it, but rather to understand why it’s low and take measures to correct it.

Typically, this means making on-time payments, paying off balances, and applying for new credit sparingly.

If this sounds like too much trouble, enlisting a professional might be an option as well.

Read more: Credit score monitoring.

(photo: vxla)