Is 600 a Bad Credit Score & What Does It Mean for You?

A credit score is a numerical representation of an individual’s financial reliability. This three-digit number predicts how likely someone is to repay borrowed money or meet payment obligations on time. Lenders and creditors rely on these scores to assess risk when considering applications for loans, credit cards, or mortgages. The score is generated from credit history data, offering a concise summary of past financial behavior. This assessment helps financial institutions determine terms, conditions, and interest rates for credit products.

Understanding Credit Score Ranges

Credit scores range from 300 to 850, with higher numbers indicating lower risk to lenders. FICO and VantageScore are the two most widely used scoring models, both categorizing scores into distinct ranges. While exact thresholds vary, a general understanding of these ranges is consistent. This classification helps lenders quickly assess an applicant’s credit standing.

For the FICO model:
Poor: 300-579
Fair: 580-669
Good: 670-739
Very Good: 740-799
Exceptional/Excellent: 800-850

The VantageScore model also uses a 300-850 scale:
Very Poor: 300-499
Poor: 500-600
Fair: 601-660
Good: 661-780
Excellent: 781-850

A 600 credit score falls into the “Fair” category for FICO scores, which is below the national average. Under the VantageScore model, a 600 score is classified as “Poor” or “Subprime” by some interpretations. Regardless of the specific label, a 600 score indicates an elevated risk to potential lenders. This score suggests an individual may have negative marks or a limited credit profile. Consequently, obtaining credit may be more challenging, and terms less favorable, than for those with higher scores.

Key Components of a Credit Score

Credit scores are calculated based on distinct categories of information from an individual’s credit report, each carrying a different weight. Understanding these components provides insight into how a score is derived and predicts a borrower’s likelihood of fulfilling financial obligations.

Payment History

This is a primary component, accounting for approximately 35% of a FICO score and up to 40% for VantageScore. It reflects whether payments on credit accounts have been made on time. Late payments, bankruptcies, or accounts sent to collections significantly lower a score. Consistent, timely payments contribute positively.

Credit Utilization

This measures the amount of revolving credit used compared to total available credit, making up about 30% of a FICO score and 20-30% for VantageScore. Maintaining low balances relative to credit limits demonstrates responsible management. A high utilization ratio, such as using over 30% of available credit, negatively impacts a score, signaling potential over-reliance on credit.

Length of Credit History

Accounting for around 15% of a FICO score and approximately 20% for VantageScore (combined with credit mix), this considers how long accounts have been open and their average age. Longer credit histories with established accounts have a more favorable impact, reflecting experience in managing credit.

New Credit

Representing about 10% of a FICO score and 5-11% for VantageScore, this includes recent credit applications and newly opened accounts. Opening multiple new accounts quickly can be viewed as increased risk, potentially lowering the score temporarily. Each hard inquiry has a minor, short-term impact, typically fewer than five points, affecting scores for up to 12 months.

Credit Mix

This final component contributes approximately 10% to a FICO score and is part of VantageScore’s “depth of credit.” It assesses the diversity of credit accounts, such as a combination of revolving credit (credit cards) and installment loans (mortgages or auto loans). Managing different credit types responsibly positively influences the score.

Real-World Impact of a 600 Credit Score

A credit score around 600 presents challenges when seeking financial products. Lenders view applicants with this score as having higher risk, influencing credit availability and terms.

Mortgages and Auto Loans

Obtaining approval for prime loans like mortgages can be challenging. While a 600 score may qualify for government-backed FHA loans (minimum FICO 580), conventional mortgages typically demand higher scores. Borrowers with a 600 score should expect higher interest rates, significantly increasing total loan cost. For auto loans, a 600 score falls into “Subprime” or “Nonprime” categories. In Q1 2025, the average APR for a new car loan (501-600 score) was around 13.22%, and for a used car, approximately 18.99%. This leads to substantially higher monthly payments and overall costs compared to borrowers with higher scores.

Personal Loans and Credit Cards

Personal loans can also be difficult to secure. Lenders may approve borrowers in this range but often impose higher interest rates or require a co-applicant or secured loan. Minimum credit score requirements for personal loans vary, with some lenders seeking 640 or higher, while others consider scores as low as 600 based on income stability. Credit card approvals are usually limited to cards designed for rebuilding credit or secured credit cards. These cards may come with lower credit limits, higher annual fees, and increased interest rates to offset elevated risk.

Other Financial Impacts

A credit score also influences non-lending financial aspects, such as rental applications. Many landlords conduct credit checks, and a 600 score might lead to requests for larger security deposits or outright denial, especially in competitive markets. Some landlords may work with lower scores if the applicant demonstrates stable income, positive rental history, or offers a co-signer. Furthermore, in most states, insurance companies use credit-based insurance scores to determine auto and homeowners insurance premiums. A 600 credit score can result in higher insurance costs, as individuals with lower scores are often perceived as a higher risk for filing claims.

How to Access Your Credit Information

Understanding your credit standing begins with accessing your credit report and scores. The Fair Credit Reporting Act (FCRA) grants individuals the right to obtain a free copy of their credit report annually from each of the three major credit bureaus: Experian, Equifax, and TransUnion.

The official, federally authorized website for these free annual credit reports is AnnualCreditReport.com. Consumers can access a free report from each bureau weekly through this site, providing regular opportunities to review their financial data.

Credit scores can vary slightly depending on the source and scoring model used. For example, a score from a credit card company might differ from one obtained through a bank, as they may use different versions of FICO or VantageScore. These variations are normal and often result from different data reporting times or model interpretations.

Reviewing your credit reports from all three bureaus is advisable to ensure accuracy and identify discrepancies. Each bureau may have slightly different information, as not all lenders report to all three. Proactively checking for errors or unauthorized activity, such as unfamiliar accounts or incorrect payment statuses, is a prudent financial practice that helps protect your credit health.