Who Has a 570 Credit Score?

While age isn't a direct factor in calculating your credit score, there is a strong correlation between age and the average score. Older individuals have typically had more time to build a longer credit history and demonstrate responsible borrowing. Here’s a look at the average credit scores by generation, according to Experian data from 2023:

• Generation Z (ages 18-26): 680 (Good)
• Millennials (ages 27-42): 690 (Good)
• Generation X (ages 43-58): 709 (Good)
• Baby Boomers (ages 59-77): 745 (Good)
• Silent Generation (ages 78+): 760 (Very Good)

Credit Cards With a 570 Credit Score

A credit score of 570 falls into the "fair" or "poor" credit range, which can present some hurdles when applying for a new credit card. Lenders often view this score as a higher risk, which may lead to rejections for top-tier rewards cards or those with premium benefits. If you are approved, you'll likely face less favorable terms, such as a higher annual percentage rate (APR) and a lower initial credit limit.

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To find the right card for your situation, Kudos offers tools that analyze your spending habits and preferences to match you with options from a database of nearly 3,000 cards. The platform provides personalized insights on how a new card might impact your credit score, helping you make a financially sound decision.

Auto Loans and a 570 Credit Score

A 570 credit score places you in the subprime borrower category, which can make securing an auto loan more challenging. Lenders generally view this score as higher risk, often resulting in significantly higher interest rates compared to applicants with better credit.

To give you a clearer picture, here are the average auto loan rates by credit score bracket:

• Super-prime (781-850): 5.25% for new cars, 7.13% for used cars
• Prime (661-780): 6.87% for new cars, 9.36% for used cars
• Non-prime (601-660): 9.83% for new cars, 13.92% for used cars
• Subprime (501-600): 13.18% for new cars, 18.86% for used cars
• Deep subprime (300-500): 15.77% for new cars, 21.55% for used cars

Mortgages at a 570 Credit Score

With a 570 credit score, your mortgage options are quite limited, as conventional and jumbo loans are generally out of reach. According to credit score requirements, your primary path would be an FHA loan. However, this comes with a significant condition: you must provide a down payment of at least 10%. While VA and USDA loans don't have official government minimums, most lenders require scores of 580-620 or higher, making them unlikely possibilities.

Beyond limited eligibility, a 570 score directly impacts your loan terms. You can expect to face higher interest rates and more expensive mortgage insurance premiums, increasing your total borrowing cost. Lenders will also likely cap the amount you can borrow and subject your finances to stricter manual underwriting. This involves a more thorough review of your income, debts, and explanations for any past credit issues, and approval is not guaranteed.

What's in a Credit Score?

Figuring out what goes into your credit score can feel like trying to solve a complex puzzle, but it's primarily based on a handful of key financial habits. The most common factors include:

• Your payment history tracks whether you have paid past credit accounts on time.
• Credit utilization is the percentage of your available credit that you are currently using.
• The length of your credit history considers the age of your oldest account and the average age of all your accounts.
• Having a healthy mix of credit types, such as credit cards and installment loans, can positively impact your score.
• Recent credit inquiries and newly opened accounts can temporarily lower your score.

How to Improve Your 570 Credit Score

Your credit score plays a crucial role in your financial life, but the good news is that it's always possible to improve it through consistent, positive financial behaviors. While it takes time and effort, taking the right steps can lead to meaningful changes within a few months.

• Monitor your credit reports. Regularly checking your reports helps you spot and correct errors or fraudulent activity that could be dragging down your score. For someone with a 570 score, finding and fixing inaccuracies can provide a quick boost.
• Set up automatic bill payments. Late payments are a primary reason for low credit scores, so automating them ensures you never miss a due date. This directly addresses payment history, the single most important factor in your score calculation.
• Lower your credit utilization ratio. High balances are a common issue for those with scores in the 570 range, so paying down debt to get below a 30% utilization rate can quickly raise your score. This shows lenders you can manage your available credit responsibly.
• Become an authorized user. If you have a trusted friend or family member with a well-managed credit card, being added as an authorized user can help. Their positive payment history and low credit utilization can be added to your credit profile, helping to build your own history.

To help you spend smarter and maximize rewards while you work on building your credit, consider using the AI-powered Kudos browser extension.