What Can You Get Approved For With a 582 Credit Score?

With a 582 credit score, you can likely get approved for a secured credit card, an auto loan, a personal loan from a credit union, or an FHA mortgage with 3.5% down. Some unsecured cards are possible too. You'll pay more than borrowers with good credit, because your score sets your rate. At 582, you're 19 points from Experian's near prime auto tier and 88 points from good credit.

Is 582 a poor credit score?

No, but it's close. FICO's fair range runs from 580 to 669, so 582 sits near the bottom of it, just 2 points above the 580 cutoff. At 670, you'd move into good credit.

A score in this range usually means your credit report shows one or more of these issues:

• Missed payments. A payment 30 days late gets reported and stays on your report for seven years. Its effect on your score shrinks as it ages, especially when newer on-time payments build behind it.
• Accounts in collections. This is a debt handed off to a collection agency, often a medical bill or an old card balance. A collection also stays for seven years, counted from the original delinquency.
• High card balances. Using a large share of your available credit lowers your score. Unlike a late payment, this changes as soon as your balances come down.

Many lenders will work with a 582 score. What changes is the terms, including higher rates, lower limits, and, in some states, higher car insurance premiums than borrowers with good credit get. And with only 2 points of cushion, one new late payment could drop you below 580.

Read more >> What Can You Get Approved For With a 620 Credit Score?

What can you get approved for with a 582 credit score?

More doors are open at 582 than in the poor range, but prices still run high. Knowing which products are reachable can save you an application.

Credit cards

Some unsecured cards designed for fair credit will approve a 582 score, but not every issuer will. Expect a low limit, a higher APR than cards for good credit, and possibly fees. Before applying, check whether the issuer offers prequalification, which uses a soft credit check that doesn't harm your credit.

A secured credit card is your most likely approval. You put down a refundable deposit that usually becomes your credit limit. A $500 deposit, for example, gets you a $500 limit. The issuer holds the deposit while the account is open and keeps it if you don't pay. You generally get it back if you close the account in good standing or are graduated to an unsecured card with steady on-time payments.

Personal loans

A personal loan is harder to get at 582 than higher in the fair range, but it's a realistic option. Expect a smaller amount and a higher rate than a borrower with good credit would get.

Start with a credit union if you belong to one or can join. Federal credit unions can't charge more than 18% on most loans. Some also offer payday alternative loans (PALs) of up to $2,000 repaid over one to 12 months. Application fees are capped at $20, and rates are capped at 28%.

Online lenders and banks that work with fair credit are another option. Any of these loans is cheaper than a payday loan, where a typical $15 fee per $100 borrowed works out to an APR of almost 400%. Compare offers using prequalification, so only the lender you choose runs a hard credit check.

Auto loans

Approval for a car loan at 582 is often easier than approval for a personal loan, because the loan is secured by the vehicle you're buying. If you stop paying, the lender can take it back and sell it. That lowers the lender's risk, but it also means falling behind puts your car at risk.

A 582 score falls in Experian's subprime tier (501 to 600). Your credit score plays a major role in the interest rate you're offered on a car loan. On a $20,000, 60-month new car loan at average rates, a subprime borrower would pay about $5,300 more in interest than a super prime borrower, and about $4,300 more than a prime borrower. Experian sorts these tiers by VantageScore 4.0, so your FICO score may place you a little differently.

Use an auto loan calculator to check payment amounts before you sign.

Mortgages

With a 582 credit score, a mortgage is within reach, and FHA is the most likely fit:

• FHA loans. Borrowers with scores of 580 or higher can qualify with 3.5% down. On a $250,000 home, that's $8,750 up front. At 582, you're 2 points above that line: From 500 to 579, the minimum rises to 10% down, or $25,000. Each lender can set higher minimums.
• Conventional loans. Fannie Mae no longer sets a minimum score for loans run through its automated system, but lenders still set their own, and many look for higher scores. Fannie Mae also charges lenders an upfront fee on the loans it buys, based on your score and down payment. At 20% down, the fee for scores of 639 and below is 2.75% of the loan amount, compared with 0.375% at 780 or higher. On a $200,000 loan, that's $5,500 versus $750, and you'd pay it through a higher rate or more cash at closing. The next fee band starts at 640, at 2.25%, which would cut the fee by about $1,000 on a $200,000 loan.
• USDA loans. These are for homes in eligible rural and suburban areas with income limits. USDA doesn't set a minimum score, but lenders typically look for 620 to 640. At 582, you're below that range, so finding a USDA lender is likely to be harder.

A lender can show you an FHA and a conventional quote side by side. Our mortgage calculator can help you compare the monthly payments.

What interest rates can you expect with a 582 credit score?

Expect rates toward the high end of the range a lender offers. The Federal Reserve's averages across all borrowers were 22.15% for card accounts charging interest and 11.86% for 24-month bank personal loans. With a 582 score, your offers are likely to come in above them.

The rate applies to the whole balance, so a few points add up. If you can wait to borrow, 19 points would move you into Experian's near prime auto tier at 601, and 88 points would get you to good credit.

5 ways to raise a 582 credit score

1. Check your credit reports for errors. You can get all three for free every week at AnnualCreditReport.com. If something is wrong, like an account that isn't yours or a late payment you made on time, dispute it with the bureau. Disputing is free.
2. Bring past-due accounts current, if you can. For accounts already in collections, it can be hard to know which to pay first. The National Foundation for Credit Counseling (NFCC) can connect you to free or low-cost counseling at 800-388-2227.
3. Pay every bill on time. Payment history is the biggest factor in your score, making up 35% of a FICO Score. At 582, it also helps keep you at 580 or higher.
4. Pay down card balances. Using less of your available credit can raise your score as soon as your issuer reports the lower balance.
5. Apply only when you need to. Each application can add a hard inquiry, which takes a few points off for about a year. Prequalify first where you can.

If your report is thin on accounts, adding one helps. A Kikoff Credit Account reports your payments to all three bureaus.

Read more >> How to Build Credit

Bottom line

At 582, you're just inside fair credit, and an FHA mortgage with 3.5% down is open to you. What your score decides now is mostly the price. Another 19 points would move you into Experian's near prime auto tier at 601, and 88 would get you to good credit in FICO's ranges. Staying at 580 or higher keeps the FHA down payment at 3.5%.

Kikoff brings credit building, bill and rent reporting, AI-powered disputes, credit monitoring, and debt negotiation into one place. Sign up with no credit check. Plans start at $5 a month.