Your credit score is within the range of scores, 580 to 669, considered fair. This means that lenders may consider you to have unfavorable credit and may decline your credit applications. A credit rating of 600 is low and tends to have financial consequences. It can make it difficult to get approved for a loan or line of credit, and may even prevent you from renting an apartment or getting certain jobs.
When your credit score is around 600, lenders may think that you won't manage your credit as successfully as someone with a higher score. This means that you'll have to work to increase your credit score or it could affect your life in more ways than you think. The main difference between a good and bad credit score is the recommendation for approval and the security deposit requirement. With a credit score of 600, you may not be able to get a mortgage and you may even struggle to rent.
If you had a bankruptcy, foreclosure, or other significant derogatory event in the past two years, there's not much you can do to increase your credit score other than wait for the event to expire in your report. This is another common question when it comes to credit scores - whether someone can get a mortgage or a credit card. Banks and lenders would prefer to lend money to people with higher scores, so they want proof of their credit rating. Even if you pay a bill one day late, it probably won't hurt your credit score (but you may have to pay a late fee).
However, having a low credit score can cost you thousands of dollars each year compared to someone with a score just 100 points higher, which is the start of good credit. If you're reviewing your credit score, it's probably because you're thinking about applying for a loan or wondering why your credit card rates are so high. A credit rating of 600 is considered “bad” according to the standard credit rating scale of 300 to 850. If your credit rating reaches 600, it's an indicator that your credit creation process is on track but needs improvement.
