A bad credit score is usually below 580 on the FICO scale, though some lenders set the line higher

Credit scores range from 300 to 850. A bad credit score typically means 579 or lower on the FICO model, which is the most common scoring system used by lenders. Some lenders treat anything below 620 as bad. The exact cutoff depends on the lender — a bank might reject you at 600, while a credit union might work with borrowers at 580.

Your score affects what you can borrow, how much you pay to borrow it, and sometimes whether you can rent an apartment or get a job. A bad score does not mean you cannot borrow at all. It means you will pay higher interest rates, need a larger down payment, or face stricter terms.

Scores in the 500–579 range are considered very poor. Scores below 500 are rare and usually mean serious, recent damage like a foreclosure, bankruptcy, or multiple missed payments in the last year or two.

Key Takeaways

  • FICO scores below 580 are generally considered bad, though some lenders use 620 as the cutoff.
  • A bad score raises the interest rate you pay on loans, mortgages, and credit cards, sometimes by several percentage points.
  • Bad credit can also affect your ability to rent housing, get a cell phone plan, or pass a background check for employment.
  • Your score is built from payment history (35%), amounts owed (30%), length of credit history (15%), credit mix (10%), and new credit inquiries (10%).
  • Scores can improve over time as old negative marks age and you build a record of on-time payments.

How a bad score affects borrowing costs

The main consequence of a bad credit score is a higher interest rate. On a $200,000 mortgage, the difference between a good score (740+) and a bad score (580–619) can be 1.5 to 2 percentage points or more. Over 30 years, that adds tens of thousands of dollars to what you pay.

Bad-credit auto loans, personal loans, and credit cards all carry higher rates. Some lenders will not offer you a loan at all below a certain score. Others will, but require a co-signer, a larger down payment, or a secured card (one backed by a cash deposit).

Credit card companies may also lower your credit limit or charge higher annual fees if your score drops into the bad range.

What creates a bad credit score

Your FICO score is built from five categories. Payment history (35% of your score) is the heaviest weight — missed payments, late payments, and accounts sent to collections all damage it. A single 30-day late payment can drop your score 50 to 100 points. A 90-day late payment or a collection account can drop it 100 to 150 points or more.

Amounts owed (30%) looks at how much of your available credit you are using. If you have a $5,000 credit limit and a $4,500 balance, that high utilization hurts your score. Length of credit history (15%) rewards you for having accounts open longer. Credit mix (10%) means having different types of credit — a credit card, an auto loan, a mortgage — looks better than having only credit cards. New credit inquiries (10%) penalizes you for applying for multiple new accounts in a short time.

Negative marks like bankruptcies, foreclosures, and tax liens also lower your score. These stay on your credit report for 7 to 10 years, though their impact fades as time passes.

How bad credit affects renting and employment

Many landlords run credit checks before approving a tenant. A bad score can lead to a denial, a higher security deposit, or a requirement to pay rent by certified check instead of automatic transfer. Some landlords use credit scores as one factor among many; others treat a bad score as an automatic disqualification.

Employers sometimes check credit reports (though not credit scores) as part of a background check, especially for jobs involving money or security clearance. A bad credit history can cost you a job offer, though laws vary by state on how much weight employers can give it.

Utility companies, cell phone providers, and insurance companies may also review your credit before opening an account or may charge you a deposit.

The difference between a bad score and a poor score

Credit scoring models use different ranges. On the FICO scale, bad is typically 580–669, and poor is 300–579. On the VantageScore model (used by some lenders and credit monitoring services), bad is 601–660 and poor is 300–600.

The distinction matters because a lender might describe your score as "poor" when you think of it as "bad," or vice versa. Always ask a lender which model they use and what score range they consider acceptable for the loan you want.

How long a bad score stays on your report

A bad score is not permanent. Late payments stay on your credit report for 7 years from the date you first missed the payment. Bankruptcies stay for 7 to 10 years depending on the chapter. Collections accounts also stay for 7 years, though their impact on your score weakens over time.

As negative marks age, their weight in your score calculation decreases. A late payment from 6 years ago hurts your score far less than one from 6 months ago. If you start making all payments on time and lower your credit card balances, your score can begin improving within a few months, though significant recovery usually takes a year or more.

Steps to understand your own score

You can get your credit score free once per year from each of the three major credit bureaus — Equifax, Experian, and TransUnion — through AnnualCreditReport.com. This is the official government-authorized site; do not use other sites that claim to be free but ask for a credit card.

You can also check your score through your bank or credit card company, many of which now offer free score monitoring to customers. These scores may use a different model than FICO, so they might not match the score a lender sees, but they give you a general sense of where you stand.

When you check your score, also review your credit report for errors. Mistakes — like a payment marked late when you paid on time, or an account you do not recognize — can be disputed with the bureau. Correcting errors can raise your score.

Frequently Asked Questions

Is a 580 credit score really that bad?

A 580 is at the threshold of bad on the FICO scale. You will face higher interest rates and stricter terms, but you can still borrow. Many lenders will work with you at 580, though some require 620 or higher. The real impact depends on what you are trying to do — renting an apartment is usually easier than getting a mortgage.

Can I get a loan with a bad credit score?

Yes, but expect higher interest rates and possibly a co-signer or larger down payment. Credit unions, online lenders, and some banks offer bad-credit loans. Payday lenders and title loan companies also lend to people with bad credit, but their rates are extremely high and can trap you in debt. Compare offers before you borrow.

How fast can I improve a bad credit score?

Scores can move within weeks if you pay down high credit card balances or if a late payment ages off your report. Significant improvement — moving from bad to fair or fair to good — usually takes 6 to 12 months of consistent on-time payments and lower balances. The older the negative mark, the slower the improvement.

Does checking my own credit score hurt it?

No. Checking your own score is a "soft inquiry" and does not affect your score. Only hard inquiries — when a lender checks your credit because you applied for a loan — count against you. You can check your score as often as you want without penalty.

What if I have a bad score but need to borrow now?

Ask whether a co-signer with better credit can help you get approved at a lower rate. If that is not possible, a secured credit card (backed by a cash deposit) or a credit-builder loan (designed to improve your score) can help you rebuild while you borrow. Avoid payday loans and title loans, which charge rates so high they usually make your situation worse.