Is 590 a Bad Credit Score and What to Do About It?

A credit score is a numerical representation of an individual’s creditworthiness, helping lenders assess the risk associated with extending credit. Various scoring models exist, such as FICO and VantageScore. This three-digit number synthesizes an individual’s past financial behavior into a single metric for potential creditors.

Understanding a 590 Score

A 590 credit score falls into the “Very Poor” or “Poor” category across most credit scoring models. FICO scores range from 300 to 850; a score below 580 is “Very Poor,” while 580-669 is “Fair.” VantageScore also classifies a 590 score as “Poor,” typically within its 500-600 range. A score in this range signals a higher risk to lenders, reflecting past credit missteps or a limited credit history, making them cautious about extending new credit.

Implications of a 590 Score

A 590 credit score significantly impacts financial opportunities and costs. Obtaining approval for substantial loans, such as mortgages or auto loans, becomes challenging. Lenders view applicants with such scores as high-risk, leading to rejections or approvals with less favorable terms and substantially higher interest rates.

Access to conventional credit cards is limited. Most unsecured credit cards require a higher credit standing, often pushing individuals toward secured credit cards, which require a cash deposit as collateral. These secured cards may also come with higher annual fees and lower credit limits. Landlords frequently check credit reports during rental applications, and a low score can lead to denial or a larger security deposit.

Certain insurance providers may review credit scores when determining premiums for policies like auto or home insurance. In some jurisdictions, a lower credit score can translate into higher insurance premiums. Utility companies, including those for electricity, gas, and internet services, might demand a security deposit before initiating service if an applicant has a low credit score.

Key Elements of Credit Scores

Payment history is the most influential factor, accounting for approximately 35% of a FICO score. This reflects an individual’s record of paying bills on time, with late payments, bankruptcies, or collections significantly impacting the score.

Credit utilization, representing the amount of credit used relative to total available credit, makes up about 30% of a FICO score. Maintaining low credit utilization, ideally below 30% of available credit, is viewed favorably. The length of an individual’s credit history, contributing around 15%, considers how long credit accounts have been open and their average age.

The mix of credit types, such as revolving credit (like credit cards) and installment loans (like car loans or mortgages), accounts for approximately 10% of the score. New credit, including recent applications and newly opened accounts, constitutes about 10% of the score. Numerous recent credit inquiries or new accounts can temporarily lower a score.

Strategies for Credit Improvement

Making all payments on time, every time, for every account is the most impactful action. Consistent on-time payments, including credit cards, loans, and other bills, are reported to credit bureaus and gradually build a positive payment history. This consistent behavior is the single most important factor in credit score improvement.

Reduce credit utilization by paying down credit card balances. Keep the amount of credit used well below 30% of the total available credit across all revolving accounts. Lowering balances improves the credit utilization ratio, which positively influences the score. Regularly reviewing credit reports from all three major bureaus—Equifax, Experian, and TransUnion—is important.

Individuals are entitled to a free copy of their credit report from each bureau annually via AnnualCreditReport.com. Examine these reports for any inaccuracies, such as incorrect late payments or accounts that do not belong to you. Disputing errors promptly with the reporting credit bureau can lead to their removal, potentially boosting the score.

Limit new credit applications to prevent multiple hard inquiries, which can temporarily lower a score. Each hard inquiry, triggered by applying for new credit, can cause a small dip in the score. For those with a limited credit history, consider a secured credit card or a credit-builder loan. A secured credit card requires a cash deposit, which acts as the credit limit, while a credit-builder loan involves making regular payments into a savings account. Avoid closing older credit accounts, even if they have a zero balance, as keeping them open helps maintain a longer average length of credit history.

Citations

• Annual Credit Report. AnnualCreditReport.com. Retrieved August 24, 2025, from https://www.annualcreditreport.com/
• Experian. What is a good FICO score? Retrieved August 24, 2025, from https://www.experian.com/blogs/ask-experian/what-is-a-good-fico-score/
• MyFICO. What’s in your FICO Score? Retrieved August 24, 2025, from https://www.myfico.com/credit-education/whats-in-your-credit-score
• TransUnion. Understanding Your VantageScore. Retrieved August 24, 2025, from https://www.transunion.com/vantage-score