A credit score of 598 falls into the fair range, meaning you may still qualify for some financial products, but often with higher interest rates and stricter terms. This guide breaks down what a 598 credit score means for credit cards, loans, and renting, while providing actionable steps to boost your score. From paying bills on time to lowering your credit utilization, these strategies can help you unlock better financial opportunities over time.
A credit score of 598 may place you in the fair range, which means you’re not alone—many people find themselves in this category. While you may still be able to access some financial products such as personal loans or a car loan, you’re likely to face higher interest rates and stricter terms. Understanding what you can qualify for and what steps to take next can help you improve your credit score over time. In this guide, we’ll explore what a 598 credit score means for your ability to get credit, loans, and more, as well as how to boost your credit score for better financial opportunities.
Improving your credit score takes time, patience, and dedication. With consistent effort and the right strategies, you can gradually boost your credit and open the door to better financial opportunities. Below are step-by-step actions to help improve your credit:
The first step in improving your credit is to regularly check your credit reports. You can obtain a free credit report from each of the three major credit bureaus—Experian, Equifax, and TransUnion—by visiting AnnualCreditReport.com. Carefully review the reports for any errors, such as incorrect balances, duplicate accounts, or unrecognized inquiries. If you find inaccuracies, dispute them with the credit bureaus to have them corrected. Removing errors can give your credit score an immediate boost.
Your payment history accounts for a significant portion of your credit score, and late payments can have a substantial negative impact. Make sure to make regular on-time payments. Setting up automatic payments or reminders is a great way to ensure that you never miss a due date.
Credit utilization, or the percentage of your available credit that you’re using, is another critical factor in determining your credit score. Aim to keep your credit card balances below 30% of your available credit limit (ideally under 10%). You can also request a credit limit increase from your credit card issuer to lower the utilization ratio, but only do this if you’re not planning to increase your spending.
Every application for a new credit account results in a hard inquiry on your credit report, which may temporarily reduce your credit score. To avoid this, only apply for credit when absolutely necessary. Additionally, space out your credit applications by at least six months to prevent a series of inquiries from negatively affecting your credit score.
If you have existing credit cards or loans, keep them open, even if you’re not using them frequently. If you’re new to credit or need to build your history, consider applying for a secured credit card like OpenSky or a credit builder loan like Kovo. Both of these options can help you establish or rebuild your credit over time.
Having a mix of different types of credit can also benefit your credit score. If you only have credit cards, consider adding an installment loan like an auto loan or personal loan to your credit mix. A healthy mix of both revolving credit (credit cards) and installment loans (like auto or mortgage loans) can demonstrate your ability to handle various types of debt responsibly.
If there are any negative items on your credit report, such as collections or charge-offs, it’s worth verifying their accuracy. If you find any mistakes, dispute them with the credit bureaus. You can also negotiate with creditors or collection agencies for pay-for-delete agreements, where they agree to remove the negative mark in exchange for payment, or you can settle debts to improve your report.
Tracking your credit score regularly will allow you to identify trends and spot areas that need improvement. You can use a credit monitoring service to stay on top of any changes to your credit. Monitoring your credit score helps you adjust your strategies and stay on track toward reaching your goals.
If you’re finding it difficult to manage the credit repair process on your own, you might want to consider tools like Dovly AI. These services can help automate the process of identifying and disputing inaccuracies on your credit report. Dovly’s system ensures that disputes are sent to the right bureaus efficiently, saving you time and effort in the process.
Improving your credit doesn’t happen overnight. It can take 3-6 months to see noticeable improvements, so be patient. The key to success is consistency. Stick to your plan and maintain good financial habits, and you will see positive changes in your credit over time.
Applying for Too Much Credit
Too many credit applications can lead to hard inquiries, lowering your credit score. Limit applications and only apply when necessary.
Missed Payments
Late payments can severely damage your credit score. To avoid this, consider setting up automatic payments or reminders to ensure your bills are always paid on time.
Maxing Out Credit Cards
High credit utilization harms your credit score. Keep usage below 30%, or ideally under 10%, and pay down existing balances.
Ignoring Old Debts
Unpaid collections stay on your credit report for up to 7 years. Settle them or negotiate to have them removed upon payment.
Closing Old Accounts
Closing old credit accounts shortens your credit history, which can hurt your credit score. Keep older accounts open, even if unused.
Improving a 598 credit score takes time, typically 3-6 months for noticeable changes, depending on your efforts. Here’s a general timeline:
Short-Term (1-3 months): Focus on paying down balances, avoiding new debt, and ensuring all bills are paid on time.
Medium-Term (3-6 months): You may start seeing a credit score increase, especially if you reduce credit utilization and dispute any inaccuracies.
Long-Term (6+ months): Continued responsible credit use, like keeping credit card balances low and maintaining a positive payment history, will help boost your credit score over time.
Staying consistent is key—improvement is gradual, but it’s achievable with patience and good financial habits.
With a 598 credit score, you may qualify for some credit card options, though the terms may not be as favorable. Secured credit cards are a good starting point. These cards require a refundable deposit, which acts as your credit limit, and they’re easier to qualify for, even with a lower credit score. On the other hand, subprime credit cards are designed for people with fair credit, but they often come with higher interest rates and additional fees, making them a more expensive option for managing your credit.
It’s possible to get approved for a car loan with a 598 credit score, but you’ll likely face higher interest rates compared to someone with better credit. Lenders may see you as a higher risk, which means you could end up paying more over the life of the loan. To improve your chances of getting a better rate, consider shopping around and possibly putting down a larger down payment to reduce the overall loan amount and show lenders that you’re financially responsible.
For personal loans, approval is possible, but the terms will likely be less favorable. With a 598 credit score, expect higher interest rates and stricter lending conditions. Lenders may offer smaller personal loan amounts and might require collateral to mitigate their risk. If you need a personal loan, it’s crucial to compare different lenders to find the best possible deal and be mindful of how much you borrow, as high-interest rates can quickly add up.
When it comes to mortgages, your options will depend on the type of loan. FHA loans typically have a minimum credit score requirement ranging from 500-580 with at least 10% down. This could be a viable option if you’re looking to buy a home with a lower credit score. However, if you’re considering a conventional loan, most lenders will require a credit score of 620 or higher, meaning an FHA loan may be a better fit if your credit score is around 598.
Renting an apartment with a 598 credit score can be possible, but some landlords may be cautious about your credit history. While approval isn’t out of reach, landlords might ask for a larger security deposit or request a cosigner to minimize their risk. These additional conditions can help reassure the landlord that you’ll be able to meet your rental obligations.
For utilities and cell phone plans, some providers may require a deposit upfront or may offer you a prepaid plan instead of a traditional postpaid plan. This is because your credit score may indicate a higher risk of missed payments, so providers may seek added security. Prepaid plans can help you avoid this issue, but they might come with fewer perks compared to postpaid plans.
Credit scores are calculated using five main factors but vary slightly depending on the credit scoring model used. The information is gather directly from the major credit bureaus. Here is the FICO score breakdown:
Payment History (35%)
Credit Utilization Rate (30%)
Credit History Length (15%)
Credit Mix (10%)
New Credit Inquiries (10%)
As of 2024, the average credit score in the United States is around 711 according to FICO score while the average credit score for VantageScore is a 680. This is considered a good credit score, meaning most consumers have at least a fair credit. Credit scores generally range from 300 to 850. Here’s a breakdown by category:
300-579 (Poor)
580-669 (Fair)
670-739 (Good)
740-799 (Very Good)
800-850 (Exceptional)
Improving your 598 credit score is entirely possible with the right steps and a little patience. By staying consistent with your payments, reducing credit utilization, and working to remove any inaccuracies from the report with the credit bureaus, you can gradually increase your score. If you’re looking for a streamlined, efficient way to repair and boost your credit, consider enrolling in Dovly AI. With Dovly’s automated system, you can easily track your progress, dispute errors, and get personalized help without the hassle. Start your journey to better credit today and unlock better financial opportunities!