Is 598 a Good Credit Score? What It Means & How to Improve

A credit score numerically represents an individual’s creditworthiness, indicating the likelihood of repaying borrowed funds. Lenders, landlords, and some utility providers use these scores to assess financial responsibility before extending credit or approving applications. A 598 credit score signals a need for improvement, suggesting challenges in accessing favorable financial products.

Understanding Credit Score Ranges

FICO and VantageScore are the main credit scoring models. Both predict repayment behavior but use different algorithms and scoring ranges. FICO scores, used by 90% of top lenders, range from 300 to 850; VantageScore 3.0 scores also range from 300 to 850.

A 598 FICO score is “Fair,” falling below the average range. This category spans 580 to 669. For VantageScore 3.0, a 598 score is “Poor,” as “Fair” begins around 601. While not the lowest, a 598 score signals elevated risk to creditors.

Key Factors Influencing Your Credit Score

Several factors contribute to your credit score, each with a different weight. Understanding these components shows how your score is derived and where improvements can be made. They provide a comprehensive picture of financial habits.

Payment History

Payment history is the most significant component, accounting for 35% of a FICO score and 40-41% of a VantageScore. Consistently making on-time payments on all credit obligations (credit cards, loans, and mortgages) demonstrates reliable financial behavior. Even a single late payment (30 days or more past due) can negatively impact a score, with severity increasing for prolonged delinquencies or repeated occurrences.

Credit Utilization

Credit utilization, the amount of credit used compared to total available credit, is another factor, making up 30% of a FICO score and 20% of a VantageScore. Maintaining a low credit utilization ratio, below 30% across all revolving accounts, is advised. For instance, with a $10,000 credit limit, keeping your outstanding balance below $3,000 indicates responsible management and positively influences your score.

Length of Credit History

Length of credit history contributes 15% to a FICO score and 20-21% to a VantageScore, reflecting how long accounts have been open. Older accounts with consistent on-time payments benefit your score, providing an extensive track record. Keeping established accounts open, even if rarely used, helps maintain a longer average age of accounts.

Credit Mix and New Credit

Your credit mix, accounting for 10% of your FICO score, considers the variety of credit products you manage. This includes a combination of revolving credit (e.g., credit cards) and installment loans (e.g., auto loans or mortgages). Demonstrating the ability to responsibly handle different types of credit positively impacts your score.

New credit, making up 10% of the FICO score and 5-11% of the VantageScore, involves recent credit applications and newly opened accounts. Opening multiple new accounts in a short period can trigger hard inquiries, which temporarily lower your score and signal to lenders you may be taking on too much debt.

Real-World Implications of a 598 Credit Score

A 598 credit score has tangible consequences, affecting various aspects of your financial life and leading to increased costs or limited opportunities. Lenders and service providers use this score to gauge risk; a lower score translates to less favorable terms. Understanding these implications helps grasp the practical impact of such a score.

Loan Applications and Interest Rates

A 598 credit score often results in loan application denials for significant purchases like mortgages, auto loans, or personal loans. If approved, lenders may require a co-signer or collateral. For example, a conventional mortgage requires a minimum FICO score of 620, while an FHA loan might allow scores as low as 500, often with more stringent down payment requirements for scores below 580.

Interest rates on approved loans are significantly higher for individuals with a 598 credit score. This translates into a substantially increased total cost of borrowing. For instance, an auto loan for someone with a “Subprime” credit score (501-600) could have an Annual Percentage Rate (APR) ranging from 13.22% to 18.99% for new or used cars, compared to 5.18% to 6.82% for someone with excellent credit (781-850), based on Q1 2025 data. This difference can add thousands of dollars to the total repayment.

Access to Credit Cards

Access to credit cards is affected, with individuals likely approved only for secured credit cards or cards with low credit limits. Premium rewards cards or introductory 0% APR offers are unavailable to those with a 598 score. Secured credit cards require a cash deposit that acts as the credit limit, mitigating risk for the issuer.

Other Financial Impacts

Beyond traditional lending, a 598 credit score presents challenges in everyday transactions. Landlords may require a larger security deposit or deny rental applications due to perceived financial risk. Utility companies (electricity, gas, and water providers) may request a security deposit before initiating services. Insurance premiums can be influenced by credit scores in some states, leading to higher rates for auto or home insurance.

Actionable Steps to Improve Your Credit Score

Improving a 598 credit score requires consistent effort and strategic financial management. Actions should focus on addressing key factors that influence your score, building a positive financial history. These steps are practical for beginning credit repair.

Prioritize On-Time Payments

Prioritizing timely payments on all bills and credit obligations is the most impactful step. Setting up payment reminders, using auto-pay through your bank or creditors, or creating a payment calendar helps ensure payments are never missed. Consistent on-time payments gradually build a positive payment history, the largest component of your credit score.

Reduce Credit Utilization

Reducing credit utilization is crucial, especially on credit cards. Aim to pay down existing balances to keep usage below 30% of available credit, or lower. Making multiple smaller payments throughout the month instead of one large payment at the end of the billing cycle helps keep reported utilization low.

Review Credit Reports

Regularly review credit reports from Experian, Equifax, and TransUnion through AnnualCreditReport.com, which allows one free report from each bureau annually. Examine these reports for inaccuracies or errors, such as incorrect late payments or accounts that do not belong to you. The Fair Credit Reporting Act (FCRA) provides consumers the right to dispute inaccurate information; initiate a dispute with the credit bureau if you find discrepancies. Credit bureaus are required to investigate disputes within 30 days.

Address Negative Items

Addressing negative items on your report, such as collections or charge-offs, is important. While paying off these items does not remove them from your report, it can show the debt has been satisfied, which may be viewed more favorably by lenders. Be cautious of “pay-for-delete” schemes, as creditors are not obligated to remove accurate negative information.

Build New Credit

Consider using secured credit cards or credit-builder loans designed to help establish or rebuild credit. Secured credit cards require a cash deposit that acts as your credit limit, while credit-builder loans involve a small loan held in a savings account until repaid. Both options report payment activity to credit bureaus, helping build a positive history.

Becoming an authorized user on a trusted family member’s credit card can benefit your score if the primary account holder has excellent payment history and low utilization. However, this strategy carries risk if the primary user mismanages the account. Avoid opening multiple new credit accounts in a short period, as each hard inquiry can temporarily lower your score and signal increased risk. It is beneficial to maintain older, positive accounts, even if inactive, to preserve the length of your credit history.