Is a 598 Credit Score Good? What It Means for You

A credit score is a numerical representation of an individual’s creditworthiness, helping lenders assess financial reliability and the likelihood of timely debt repayment. Understanding your credit score is important for managing personal finances, as it influences access to various financial products and services.

Understanding Credit Score Ranges

Credit scores, calculated using models like FICO and VantageScore, typically range from 300 to 850. Lenders categorize these scores into tiers to assess risk.

For FICO Scores, a range of 300 to 579 is considered “Poor,” while 580 to 669 falls into the “Fair” category. “Good” credit ranges from 670 to 739, “Very Good” from 740 to 799, and “Exceptional” from 800 to 850.

VantageScore also uses a 300 to 850 scale, though its categories might have slightly different boundaries. For instance, VantageScore 3.0 often defines “Poor” as 300 to 599, “Fair” as 600 to 660, “Good” as 661 to 715, “Very Good” as 716 to 747, and “Excellent” as 748 to 850. A 598 credit score generally falls within the “Fair” category for FICO Scores and is on the lower end of the “Poor” category for some VantageScore models, indicating it is below average and may present some risk to lenders.

Implications of a 598 Credit Score

A 598 credit score can present limitations when seeking various financial products, often resulting in less favorable terms. Obtaining personal loans, auto loans, or mortgages can be challenging.

While approval for an auto loan might be possible, individuals with a 598 score typically face significantly higher interest rates. For example, in the first quarter of 2025, borrowers with credit scores in the 501-600 range (subprime) saw average new car loan APRs around 13.22% and used car loan APRs around 18.99%. These rates are significantly higher than for those with better scores, increasing overall costs.

Access to conventional mortgages is generally difficult with a 598 score, as many lenders prefer scores above 620 or 640. Federal Housing Administration (FHA) loans may offer more flexibility, sometimes allowing scores as low as 500 with a larger down payment, but approval remains challenging and often requires a higher mortgage insurance premium.

Credit card options are primarily limited to secured credit cards, which require a cash deposit as collateral, or subprime unsecured cards that often come with high annual fees and elevated annual percentage rates (APRs) of 25% to 36% or more. These cards typically offer low credit limits, such as $200 to $500.

Landlords frequently review credit reports to assess a prospective tenant’s financial responsibility. A lower score may lead to a requirement for a larger security deposit, potentially two or three months’ rent, or could necessitate a co-signer. In competitive rental markets, a lower score might even result in application denial.

Additionally, in many states, credit scores influence insurance premiums for auto and home policies. A less favorable credit-based insurance score often correlates with higher premiums, as insurers view individuals with lower scores as a greater risk for filing claims.

Steps to Improve Your Credit Score

Improving a 598 credit score involves consistent financial discipline focused on key credit factors. Payment history is the most significant component, accounting for approximately 35% of a FICO Score.

Consistently making all payments on time for credit cards, loans, and other financial obligations is important. Even a single late payment can negatively impact a score. Setting up automatic payments or payment reminders can help ensure timely submissions.

Credit utilization, the amount of credit used compared to the total available credit, makes up about 30% of a FICO Score. Keeping credit card balances low, ideally below 30% of the available credit limit on each card and overall, is advisable. For example, on a $1,000 limit, keep the balance below $300. Paying down revolving debt can quickly improve this ratio and positively influence the score.

The length of credit history contributes around 15% to a FICO Score, reflecting how long accounts have been open and actively managed. Generally, a longer history is favorable, so avoiding the closure of old, paid-off accounts helps maintain the average age of accounts.

The mix of credit types, such as revolving accounts (credit cards) and installment loans (auto loans, mortgages), accounts for about 10% of a FICO Score. Demonstrating responsible management of different credit types can be advantageous, but opening new accounts solely for this purpose is not recommended.

New credit inquiries, which occur when applying for new loans or credit cards, make up about 10% of a FICO Score. Each hard inquiry can temporarily reduce a score by a few points for up to 12 months. It is prudent to limit applications for new credit to only when necessary to avoid multiple inquiries in a short period.

Regularly checking credit reports for accuracy is another important step. Consumers can obtain a free copy of their credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) weekly through AnnualCreditReport.com. Reviewing these reports for errors and promptly disputing any inaccuracies can help ensure the score accurately reflects an individual’s credit behavior.