590 Credit Scores Can Get Expensive…
If you’ve got a “590 credit score,” don’t give yourself a pat on the back. Give yourself a swift kick in the butt, because it’s not a good credit score.
Heck, it’s not even an average credit score folks. Far from it…
In fact, depending on what credit score scale we’re using, it could be a pretty atrocious credit score.
As always, when dissecting a specific credit score, we need to look at the appropriate scale before we dive in so we aren’t just arbitrarily assessing ourselves.
590 Fico Score
For the more common Fico score, which ranges from 300 to 850, a 590 credit score would put you on the lower end of the spectrum.
In fact, you’d be below subprime, which begins at 619. And about 120 points below the average, which is around 710.
So where did you go wrong?
Well, if your score is at this level, you’re not a complete disaster, but you must have missed a payment or two.
I would guess that you’ve got a few missed payments, and maybe even a collection or a charge-off, along with high outstanding balances on your existing accounts.
There’s a possibility that you’ve got a more serious delinquency, such as a foreclosure or a short sale, on your credit report as well.
(Foreclosure vs. short sale impact on credit score)
Either way, you’re falling below the mark and must take measures to fix your score before you drift deeper into the abyss.
You’re not hopeless, but you’re at a point where you need to take a hard look at your credit to determine what needs to change for the better.
When it comes to the lesser known (and used) VantageScore, a 590 score would land you near the very bottom of their scale, which ranges from 501 to 990.
The good news is you’d be in the very top of their “F” bucket. The bad news is that’s still an F. And we all know an F letter grade is terrible. A “D” isn’t much better…
So if your credit score is this low, you’ve likely got a serious red flag on your credit report, such as a foreclosure or a bankruptcy.
In other words, there are probably multiple, major derogatory accounts holding you down.
If this is the case, it’d be wise to enroll in a credit score monitoring program and take measures to drastically improve your credit score.
We’re talking settling debts, disputing negative tradelines, removing tax liens, paying down balances, etc., etc. It may require a professional.
And it’s going to take some time, probably years to fix things, but you’ve got to start somewhere. The sooner the better!