As mentioned above, a 574 FICO® Score is considered “Very Poor”. This is typically a result of situations such as:
Approximately 16% of all consumers in America have FICO® Scores in the “Very Poor” range (574-579).
With a 574 FICO® Score, you’ll struggle to obtain credit cards & loans. For the credit you do happen to secure, unfortunately it will come with extremely high interest rates.
To improve your credit score, you need to focus on fixing the underlying factors.
Not sure where to start? A dedicated credit repair agency, like us, can work with you to ensure you’re maximizing all avenues when it comes to improving your score.
As mentioned previously, a 574 credit score is considered “Very Poor”. So your lending options are going to be extremely limited.
In most cases, your lending applications will be rejected. For loans/credit you are approved for, you will often need to pay extra fees or deposits, and you will have the highest interest rates.
In most cases, your lending applications will be rejected with a 574 credit score. But in cases where you are approved, unfortunately you will pay the highest interest rate tiers.
These higher interest rates can cost you thousands of dollars in added interest over the lifetime of your loans, in comparison to if you had a “Good” credit score.
We highly recommend you take the necessary steps towards repairing your credit, and securing a better financial future for yourself.
Having a low credit score of 574 can prevent you from achieving financial stability and security, as it makes it harder to access loans and credit cards with favorable terms. It's important to understand the factors that affect your credit score so you can work on improving it.
Start by getting a free credit report to get an understanding of where you currently stand. Then, create a budget and adhere to it – make payments on time, keep credit card balances low, and try not to open too many new accounts. These small steps can help you improve your credit score over time and unlock the benefits of having good financial health.
Improving your credit score takes time and dedication, but it's definitely achievable. Start by making payments on time every month - you can set reminders or automate payments to avoid missing any due dates. Additionally, keep your credit utilization low by not maxing out your credit cards and paying off balances each month. It's also important to limit new account openings - instead, consider becoming an authorized user on a family member's credit card as one way to build up your credit score. With commitment and smart financial habits, you can make positive changes in your score over time.
The chances of securing a mortgage with a 574 credit score are extremely low unfortunately. Is it possible? Maybe, but it generally isn’t a wise idea with such a low credit score.
Why? Because you’ll end up paying thousands of dollars in extra interest over the life of the loan.
Instead, we recommend focussing on improving your credit score, to at least 580-669 (which is considered “Fair”, or ideally 670+. Once you’ve increased your score, you’ll be in a much better place to apply for a mortgage.
With a 574 credit score, you’ll be considered a “deep subprime borrower”, which is the lowest credit tier. There may still be auto loan options for you, but they’ll be a lot more difficult to come by, and you will pay higher interest rates.
Unfortunately the theme continues here, with a 574 credit score, it is going to be difficult to obtain a personal loan (at least one with good interest rates). You may be tempted to deal with lenders that have a poor reputation, but we urge you not to.
The best thing to do is focus on improving your credit score, to the “Fair” range (between 580-669), which will put you in a significantly better position when it comes to applying for loans/credit.
Let’s face it, a 574 credit score is not good. Applying for any forms of lending will be very difficult & expensive.
You’ll pay higher interest rates, and often have substantial fees.
The best course of action (by far), is to improve your credit score first before you apply for loans. Not only will it open more doors for you, it will also save you a ton of money in the long run (due to lower interest rates).
Speak with a live credit specialist for your free consultation, now
