Is 560 a Good Credit Score?

By Jamie Cattanach

A 560 credit score is considered poor not good. In fact, 560 falls into the lowest FICO® credit score range. This means that your rating does not reflect responsible use of credit in the past.

But the upside is that credit can be built, and 560 isn’t too far shy of the next level, which starts with the score of 580. With patience and persistence, you may be able to bring your credit score higher, thus opening up opportunities for more successful credit and loan applications — and lower interest rates on the loans you successfully qualify for.

What Does a 560 Credit Score Mean?

While there are different types of credit scores out there, FICO scores are the most popular in the United States. FICO scores range from 300-850, and are organized into the following tiers:

•   Poor: 300-579

•   Fair: 580-669

•   Good: 670-739

•   Very good: 740-799

•   Excellent (or exceptional): 800-850

As you can see, a score of 560 is officially in the “poor” category of FICO credit scores — but it’s also only 20 points shy of breaking into the “fair” category, which could open more doors in the world of borrowing.

Plus, a credit score of 560 is far from the lowest score in the “poor” category. Although you’ll likely have to shop around more for a lender who is willing to work with you, you may still qualify for certain types of credit with a score of 560 (though your interest rates are likely to be higher than they would be if your score were further up the ladder).

What Else Can You Get With a 560 Credit Score?

While a 560 credit score does have room for improvement, there may still be some opportunities available to you if you really need a loan. (That said, if you can afford to wait until you’ve repaired your credit score, doing so might be worthwhile. Lower interest rates could save you hundreds, or even thousands, of dollars over time.)

Here are details regarding what to expect with your current credit score.

Can I Get a Credit Card With a 560 Credit Score?

Yes, there are credit cards on the market geared toward people with poor credit or little credit history — which may be referred to as having a thin credit file. Many of these are secured credit cards, which give borrowers with poor credit the opportunity to open a credit card and ideally use it to build their credit score up. You put down a cash security deposit equal to the desired credit limit on the card. As you spend, you can potentially build your score.

You may also be able to successfully apply for an unsecured credit card, which doesn’t require a security deposit. Just know that you might be assessed a higher interest rate than those with a loftier score. While you may be eager to have an unsecured card, keep in mind that credit card debt can be some of the easiest debt to get into and the hardest to pay off. You’ll want to be sure to use your new card responsibly so you can build your score over time.

Can I Get an Auto Loan with a 560 Credit Score?

It might not be the most satisfying answer, but the truth is, it depends. Every lender has its own algorithm for determining creditworthiness, and some auto lenders do offer loans to borrowers with poor credit scores.

That said, you’re more likely to qualify if you can build your credit score up to the “fair” category. If you can wait until then to get behind the wheel of your new ride, all the better. That’s because the higher your score, the lower your interest rate is likely to be. What’s more, since vehicles are depreciating assets, a high interest-rate auto loan can quickly put you in more debt than your car is worth (also known as the loan becoming “upside down”).

Can I Get a Mortgage with a 560 Credit Score?

Everyone needs a place to live, and buying a house can be a way to build wealth over time. It can, however, be a challenge to get a loan to achieve homeownership with a low credit score.

While a credit score of 560 may limit your options, there are still mortgage lenders who work with people with lower credit scores. Some of it depends on the type of mortgage you go for. For example:

•   FHA loans have a minimum credit score of just 500, provided you can afford a 10% down payment.

•   VA loans may be available with a credit score of 580 and higher.

•   Conventional mortgages can likely be found with a credit score of 620 and above.

There are, however, other important factors your lender will likely take into consideration when qualifying you for a home loan. Your income, job history and stability, and debt-to-income ratio (DTI) are just a few of the considerations that will be on the table during the approval process.

Given the price of homeownership in America, even a small decrease in interest rate could translate to thousands of dollars over the course of a 30-year loan. So if you can wait until your credit score improves, it might be a wise financial move.

Can I Get a Personal Loan with a 560 Credit Score?

Personal loans are a flexible way to borrow money for just about any purpose you desire. People take out personal loans, which are usually unsecured, for such reasons as:

•   To cover the cost of home repairs and maintenance

•   To pay for unexpected medical emergencies or car repairs

•   To consolidate credit card debt

•   To pay for a wedding, a special vacation, or other major event

While personal loans may feel like a good way to access a large chunk of money up front, keep in mind that they tend to have higher interest rates than secured loans, or those with some sort of collateral on the table, like auto loans and mortgages.

They also usually have more stringent qualification requirements, which means they may be harder to successfully apply for with a poor credit score. Typically, you need a credit score of 580 or higher to secure a personal loan. Given that a score of 560 is close to that mark, you could build your score and potentially secure greater loan access.

(You could also look into secured personal loans, which allow you to pony up your home, vehicle, bank account, or investments as collateral.)

Either way, it’s worth running the numbers on a personal loan calculator to ensure you understand how much you’re spending over the long term.

Recommended: Loans for Wedding Expenses

The Takeaway

While a credit score of 560 is technically in the “poor” category, that doesn’t mean you can’t access credit. You may be able to find funding, but typically at a higher interest rate than if your score were higher. That said, with effort, persistence, and on-time payments of existing loans, you can likely build your credit score and secure lower interest rates on future credit products.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

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