What Can You Get Approved For With a 598 Credit Score?

With a 598 credit score, you can likely get approved for a secured credit card, an auto loan, a personal loan, or an FHA mortgage with 3.5% down. Some unsecured cards are within reach too. You'll pay more than borrowers with good credit, because your score sets your rate. At 598, you're 3 points from Experian's near prime auto tier and 72 points from good credit.

Is 598 a poor credit score?

No. FICO's fair range runs from 580 to 669, so 598 sits in the lower half of it, 18 points above where fair credit starts. 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:

• A late payment. A payment 30 days or more late 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.
• 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.
• A short or thin credit history. A thin credit file, meaning a report with only a few accounts or accounts that haven't been open long, gives scoring models less to go on.

Many lenders will work with a 598 score. The difference is in the terms, including higher rates, lower limits, bigger deposits, and, in some states, higher car insurance premiums than borrowers with good credit get.

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

What can you get approved for with a 598 credit score?

More doors are open at 598 than in the poor range, but prices can still run high. Knowing which products are reachable can save you an application.

Credit cards

Not every issuer will approve a 598 score for an unsecured card. Cards designed for fair credit are the realistic ones. Expect a modest limit and a higher APR than cards for good credit. 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 reliable approval. You put down a refundable deposit that usually becomes your credit limit. A $500 deposit, for example, gets you a $500 limit. 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 realistic at 598, but 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 with rates capped at 28%.

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

Auto loans

Approval for a car loan at 598 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 598 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's subprime borrowers average 13.52% on new cars and 19.1% on used cars. In the near prime tier, starting at 601, the gap to super prime shrinks to about $3,000. 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 598 credit score, mortgages are within reach, and FHA is the most realistic. Costs depend on the type:

• 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 598, you're 18 points above that line. Below 580, 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, so approval at 598 depends on the lender. 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, paid through a higher rate or more cash at closing. The next fee band starts at 640, 42 points away, where the fee drops to 2.25%: $1,000 less 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 598, you're below that range, so expect fewer lenders to say yes.

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 598 credit score?

Expect rates toward the higher end of what 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 598 score, your offers are likely to come in above them.

The rate applies to the whole balance, so even a small difference adds up. If you're shopping for a car and can wait, 3 more points on your score would move you from subprime to near prime in Experian's tiers.

5 ways to raise a 598 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 any past-due accounts current, if you can. If you're juggling more than one, 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.
4. Pay down card balances. Using less of your available credit can raise your score as soon as your issuer reports the lower balance, which makes it a fast way to close a small gap.
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 598, many lenders will approve you, including for an FHA mortgage with 3.5% down. What your score decides now is the price. Just 3 more points moves you from subprime to near prime in Experian's auto tiers, and 72 gets you to good credit in FICO's ranges.

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.