Would a 580 be considered a bad credit score?
Posted in Credit on 01/21/2010 03:55 am by admin
ac19 asked:
I am currently 19 and I have a 580 credit score. I have NO judgments or collections on my credit report. I have 2 credit cards currently reporting on my credit file. I have had one since I was 17 was late on a payment over 1 year ago. The other credit card is only about 2 months old, never late. I also have another credit card not reporting on my file (had this one about 1.8 years) late one time over a year ago. I also have student loans.
I am currently 19 and I have a 580 credit score. I have NO judgments or collections on my credit report. I have 2 credit cards currently reporting on my credit file. I have had one since I was 17 was late on a payment over 1 year ago. The other credit card is only about 2 months old, never late. I also have another credit card not reporting on my file (had this one about 1.8 years) late one time over a year ago. I also have student loans.
My identity was all most stolen; over 30 inquiries in the past year (which I think; maybe why my score is low). Should I add a consumer statement to my credit file explaining the inquiries?
I make a little over 2100/month. I have no bills I have to pay (only cell phone) other than that I just buy what I want. If i were to go to a bank and they were to take a look at my score and report could I get a auto loan for 15k?
GONZALO
01/21/2010 at 8:53 pm
ROCKY
Well credit score is a funny thing, it doesn’t mean anything without credit history backing it up. Have you held a negative balance on them credit cards the whole time, or have you paid them off at one time? I wouldn’t suggest going to a bank to get an auto loan, ever at all, especially with economic crisis. I have had a similar problem, and my bank of 6 years wouldn’t give me a 16K loan, with good credit score, but little history. I went to the auto dealership and they got me the loan in about 10 mins, excellent payments and interest rate. The reason why is they submit your credit score and history and make banks compete over it. GOOD LUCK!
01/22/2010 at 4:26 pm
DUANE
580 isn’t that great of a score. Most companies ask that your score be at least over 600. With the credit crunch everyone is feeling, that might have changed. A dealer could find you an auto loan with that score, but the interest rate could be high. I would contact the credit reporting agencies, let them know that you didn’t make those inquiries. They can place a temporary hold on your credit. What is this? Prior to companies receiving your credit report, they will need to verify that it is really you. You won’t be able to go online to try to get credit. You can have this removed by sending a letter to the credit bureaus. Or after a period of time, different with each company, it will automatically be removed.
01/25/2010 at 4:18 pm
ELLIOTT
In this day and age you’ll probably need a score of 700 to get a auto loan. Your lack of credit history, late payments, and student loan will be factors against you.
As an alternative, you can ask your parents to co-sign the loan which may help you get approved and help build your credit history along the way. Just make sure to make the payments because their credit history will be affected as well.
Regarding all the inquiries into your credit, you need to lock it from being checked. Go to equifax.com, enroll and lock your credit. Good luck with your loan.
01/27/2010 at 7:40 pm
JOHNNIE
Generally 580 would be considered a bad score. Most lenders won’t even think about approval for scores under 600 but really want to see scores above 620 as a minimum.
As to the reason. Inquiries account for only 10% of your overall score so 30 could be causing a reduction, but not a huge amount. Just as you can dispute other items you can dispute the inquiries to have them removed. DO NOT add a consumer statement. Those are not taken into consideration in your score and if they are manually reviewed can sometimes point out something that is really not an issue.
The other thing to be sure of is that your credit card balances are under 30% of your total limits. If you are above this, the higher above this the more of a negative effect it has on your score.
01/30/2010 at 10:14 am
RODRIGO
Not a great score but you just explained why it’s so low.
1. Way too many inquiries you don’t want more than 3-4/year
Dispute anything with the credit bureau that’s not yours
2. Don’t be late on credit card payments, it’s not worth it.
3. Don’t apply for anymore cards and keep your existing ones to a minimum balance.