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586 Credit score: What You Need to Know in 2025
July 1, 2025
TL;DR
A 586 credit score is a solid starting point on your journey toward building a stronger financial future. While it falls into the "poor" range on the FICO scale, this represents a clear opportunity to improve and unlock more favorable lending options.
What Does a 586 Credit Score Mean?
A FICO score of 586 places you in the "fair" credit range, which typically spans from 580 to 669. While not the lowest possible score, it signals to lenders that you may be a higher-risk borrower. This classification can significantly influence your financial opportunities, as creditors use this number to quickly gauge your creditworthiness. It's a signpost indicating potential challenges when applying for new credit or loans.
With this score, you'll likely encounter higher interest rates on credit cards and loans, making borrowing more expensive. Lenders may deny applications or require stricter terms, like a co-signer or a larger down payment. Although a 586 score can limit your immediate financial flexibility, credit scores are not permanent. It represents a snapshot in time, offering a clear starting point for building a stronger financial future.
Who Has a 586 Credit Score?
While age isn't a direct factor in credit score calculations, there is a strong correlation between age and higher scores. Data on average credit scores from late 2023 shows a steady increase with each generation:
- Ages 18-26 (Gen Z): 680
- Ages 27-42 (Millennials): 690
- Ages 43-58 (Gen X): 709
- Ages 59-77 (Baby Boomers): 745
- Ages 78+ (Silent Generation): 760
Credit Cards With a 586 Credit Score
With a credit score of 586, you fall into what lenders consider the "fair" credit category, signaling a higher risk to potential card issuers. This can make qualifying for a standard credit card challenging, often resulting in application denials or approvals for cards with steep interest rates and annual fees. Your most likely path to approval will be through secured credit cards or those specifically designed for building credit, which typically offer less generous terms.
Kudos can help you find the best card for your situation with its AI-powered tools, which analyze your financial preferences and spending habits to provide personalized recommendations from a database of nearly 3,000 cards. These tools, like the Explore Tool and Dream Wallet, also offer insights into how applying for a new card may impact your credit score, empowering you to make a more informed decision.
Auto Loans and a 586 Credit Score
A 586 credit score places you in the subprime lending category, which signals to lenders that you are a higher-risk borrower. Consequently, you can expect to be offered significantly higher interest rates and may face more stringent approval criteria for an auto loan.
- 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 586 Credit Score
A 586 credit score places you in range for specific government-backed mortgages. Your primary option will likely be an FHA loan, which accepts scores as low as 580 with a 3.5% down payment. Conventional loans are generally unavailable, as they typically require a minimum score of 620. While some VA or USDA loans may be possible, your score falls below what most of their lenders prefer.
This credit score will directly impact your loan's cost. Expect to face higher interest rates and more expensive mortgage insurance premiums compared to applicants with stronger credit. Lenders may also subject your application to stricter scrutiny, known as manual underwriting, where they will closely review your entire financial profile, including income stability and past credit issues.
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 generally boils down to a handful of key elements. The most common factors include:
- Your payment history, which tracks whether you pay your bills on time, is the most significant factor.
- Credit utilization, or the amount of credit you're using compared to your total available credit, also plays a major role.
- The length of your credit history demonstrates your experience with managing credit over time.
- Having a healthy mix of different types of credit, such as credit cards and installment loans, can positively impact your score.
- Finally, recent credit inquiries, which occur when you apply for new credit, are also taken into account.
How to Improve Your 586 Credit Score
Improving your credit score is achievable through consistent, positive financial behaviors, and there are several proven methods to help you do it. Whether you're aiming to boost your FICO® or VantageScore, focusing on a few key areas can make a significant difference.
- Monitor your credit reports. Regularly checking your reports helps you find and dispute inaccuracies that could be dragging down your 586 score.
- Establish automatic bill payments. Since payment history is the most significant factor in your score, this ensures you never miss a due date and begin building a positive track record.
- Reduce your credit utilization ratio. Paying down balances to keep your utilization below 30% is a powerful way to show lenders you can manage credit responsibly, which can quickly improve your score.
- Become an authorized user. Being added to a credit card account with a strong payment history and low balance can add that positive history to your own report.
For additional help, Kudos provides tools and education that can help you use credit more effectively and maximize rewards as you improve your score.
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