Is a 593 Credit Score Good? How to Improve It

A credit score is a numerical representation of an individual’s creditworthiness, used by lenders to assess the likelihood of timely repayment. This three-digit number provides an overview of how financial obligations have been managed. It serves as a tool for financial institutions, insurance providers, and landlords to evaluate risk. A credit score is built upon financial information in a credit report, reflecting past borrowing and repayment behaviors.

Understanding Credit Score Ranges

Credit scores typically range from 300 to 850, with different scoring models like FICO and VantageScore. Both models categorize scores into ranges, with higher numbers indicating lower risk to lenders.

For FICO Scores, common categories include Poor (300-579), Fair (580-669), Good (670-739), Very Good (740-799), and Exceptional (800-850). VantageScore models also operate within the 300 to 850 range, with categories like Very Poor (300-499), Poor (500-600), Fair (601-660), Good (661-780), and Excellent (781-850).

A credit score of 593 generally falls into the “Fair” or “Poor” category, depending on the specific scoring model used. For instance, a 593 FICO Score is considered “Fair,” while some VantageScore models might place it in the “Poor” range. This score signals to lenders that an individual may have experienced past credit difficulties or possesses a limited credit history, indicating a higher perceived risk. Consequently, approval for credit products may be challenging, and terms offered are likely to be less favorable.

Implications of a 593 Credit Score

A 593 credit score can significantly impact a consumer’s access to various financial products and services, often leading to less advantageous terms. Obtaining credit cards might be possible, but typically only basic options or secured cards will be available, and interest rates will likely be high. Lenders may view applicants with this score as higher risk, making it difficult to qualify for unsecured credit.

For loans, including auto, personal, or mortgage loans, a 593 score presents considerable hurdles. While not impossible to obtain, approval often comes with significantly higher interest rates, stricter repayment terms, and potentially a requirement for a co-signer or collateral. Mortgage approval, for example, may be limited to specific loan types, such as FHA loans, which can have higher interest rates and fees compared to conventional mortgages.

Securing rental housing can also become more challenging with a lower credit score. Landlords often use credit checks to assess a prospective tenant’s financial reliability and may require larger security deposits or a guarantor if the score is low. A lower score indicates a higher risk of late or missed rent payments to property owners. Additionally, insurance premiums, particularly for auto and home policies, can be influenced by credit scores in many states, with lower scores often correlating to higher costs.

Factors Influencing Your Credit Score

Credit scoring models, such as FICO, calculate a score based on several key components, each weighted differently.

Payment history (35%): The most significant factor, assessing whether bills have been paid on time. Late payments, delinquencies, or collection accounts negatively impact the score.
Amount owed (30%): Also known as credit utilization, this refers to the proportion of available credit that is currently being used. Lower utilization ratios are generally more favorable.
Length of credit history (15%): Considers how long accounts have been open and the average age of accounts.
New credit (10%): Reflects recent applications and newly opened accounts. Opening multiple new accounts in a short period can be seen as a higher risk.
Credit mix (10%): The variety of different types of credit accounts (e.g., installment loans, revolving credit), demonstrating an individual’s ability to manage diverse forms of credit responsibly.

Steps to Improve a 593 Credit Score

Improving a 593 credit score requires consistent effort and a focus on positive financial behaviors.

Make all payments on time: Payment history is the largest determinant of a credit score. Establishing a consistent record of timely payments demonstrates reliability to lenders.
Reduce credit utilization: Pay down credit card balances to keep the amount of credit used significantly below the total available limit, ideally below 30%. Lowering balances on revolving credit accounts can quickly contribute to score improvement.
Review credit reports for errors: Inaccuracies can negatively affect a score. If errors are found, they should be disputed with the credit reporting agencies and the information provider.
Avoid new credit applications: Multiple applications in a short timeframe can help prevent further score reductions from hard inquiries. Instead, focus on managing existing accounts responsibly.
Consider secured credit cards and credit-builder loans: These can serve as effective tools for individuals with limited credit history or those rebuilding credit. A secured credit card requires a cash deposit as collateral, while a credit-builder loan involves making regular payments into a savings account before the loan amount is released. Both types of accounts report payment activity to credit bureaus, helping establish a positive payment history and build a more robust credit profile over time.