What Can I Get With a 587 Credit Score?

Credit scores are numerical summaries of your creditworthiness, helping lenders assess the risk associated with extending credit, influencing the types of financial products available and the terms offered. Understanding your credit score is important for making informed financial decisions, as it impacts everything from borrowing money to securing housing.

What a 587 Credit Score Means

A 587 credit score generally indicates a higher risk profile to lenders. On common scoring models like FICO and VantageScore, a 587 score typically falls into the “Fair” or “Poor” category. This classification suggests to potential creditors that there have been past credit management challenges, such as late payments or collection accounts. Lenders often perceive individuals with this score as having an increased likelihood of becoming seriously delinquent on future obligations; approximately 27% of consumers in this range are likely to face serious delinquency. While obtaining credit or loans may still be possible, the terms will generally be less favorable than those offered to borrowers with higher scores, meaning higher interest rates and more stringent requirements.

Credit Cards and Personal Loans

Credit Cards

Accessing credit cards with a 587 credit score often involves specific types designed for individuals with limited or developing credit. Secured credit cards are a common option, requiring a cash deposit (often around $200) that acts as the credit limit. These cards help build payment history by reporting to credit bureaus. They typically have annual fees ($19-$50) and average APRs of 23.40% or higher.

Subprime or starter cards are another option, sometimes without a deposit, but they feature high interest rates (often over 30% APR), lower credit limits, and various fees. While traditional unsecured cards are generally out of reach, a co-signer with strong credit can help secure a card, as their strong credit history reduces the lender’s risk.

Personal Loans

Obtaining an unsecured personal loan with a 587 credit score is challenging through traditional lenders. These high-risk loans lead to higher interest rates if approved. Some online lenders or credit unions specialize in options for borrowers with lower credit scores. Secured personal loans, which require collateral, are more accessible as collateral reduces lender risk. A co-signer with a strong credit history and stable income can improve approval chances and loan terms, but they become equally responsible for the debt, meaning their credit can be negatively impacted if payments are missed.

Auto Loans and Mortgages

Auto Loans

Securing an auto loan with a 587 credit score is possible, but borrowers are typically “subprime” and face significantly higher interest rates compared to those with better credit scores. In Q1 2025, average new car loan APRs for this range were about 13.22%, and used car APRs were 18.99%, much higher than overall averages. Lenders offering subprime auto loans might also require larger down payments to offset the increased risk. The higher interest rates mean a considerably greater total cost for the vehicle.

Mortgages

Obtaining a conventional mortgage with a 587 credit score is highly unlikely, as most require a minimum of 620. However, government-backed options, particularly FHA (Federal Housing Administration) loans, offer flexibility. With a score of 580 or higher, an FHA loan typically requires a minimum 3.5% down payment (e.g., $14,000 on a $400,000 home).

A 587 score is still on the lower end for FHA, leading to less competitive terms. FHA loans also involve mortgage insurance premiums (MIPs), consisting of an upfront premium and an annual premium: an upfront 1.75% premium and an annual premium (e.g., 0.55% of the loan amount, paid monthly). This annual MIP may be required for the entire loan term if the down payment is less than 10%. The combination of higher interest rates and mandatory MIPs increases the overall mortgage cost.

Renting and Other Everyday Impacts

Renting

A 587 credit score can present challenges when seeking rental housing, as landlords frequently review credit reports as part of their tenant screening process. A lower score may signal a higher risk, potentially leading landlords to request a larger security deposit (often one or two months’ rent), require a co-signer who possesses a stronger credit history and stable income, or they could deny the rental application entirely. Providing additional references or offering to pay several months’ rent upfront might sometimes help mitigate these concerns for landlords.

Utilities and Phone Services

Utility companies, including those providing electricity, gas, and water, often conduct credit checks before initiating service. A lower credit score can result in a requirement to pay a security deposit, which typically ranges from $100 to $250. Mobile phone providers may also impose a security deposit or restrict available plans if a credit check indicates a higher risk.

Auto Insurance

Credit scores can also influence auto insurance premiums. In most states, insurers use credit-based insurance scores, which are derived from credit reports, to help determine rates. Individuals with lower credit scores are often perceived as higher risk by insurance companies, leading to higher premiums. Drivers with poor credit may pay significantly more for coverage, with some estimates suggesting a 95% increase compared to those with good credit.

Employment

While less common for general employment, some employers, particularly in financial sectors or roles requiring handling sensitive information, may conduct credit checks. A lower credit score could potentially be a factor in hiring decisions for these specific positions. However, for most jobs, credit history is not typically a primary consideration.