Is a 564 credit score bad? Loans, cards & rates explained

A 564 credit score is considered a poor‑to‑subprime rating, meaning most lenders will view you as a higher‑risk borrower and you'll likely face tighter terms or outright denial on many products. It isn't a permanent label, but at this level you can expect fewer loan options, higher interest rates, and stricter approval criteria unless you have compensating factors such as a sizable down payment or strong income.

Because the score sits well below the 'good' range, you'll typically qualify only for subprime personal loans, secured credit cards, or lender‑specific financing programs that accept lower scores; conventional mortgages and many credit cards will usually be out of reach. Check your credit report for errors and start building positive history - on‑time payments, low utilization, and a mix of credit types can lift a 564 relatively quickly. Always verify any offers' terms before signing to avoid unexpected costs.

A 564 score shows lenders you have some credit history, but they'll see you as a higher‑risk borrower, so your borrowing power is limited - not zero.

What that means for you

• Loan size: You're more likely to be approved for smaller balances; large personal or mortgage loans are often out of reach without a co‑signer or extra collateral.
• Approval odds: Expect a moderate chance of approval - typically around half of applications succeed, depending on the lender's specific underwriting rules.
• Interest rates: When you do get approved, rates are usually above average, which raises the total cost of borrowing.
• Down‑payment expectations: Lenders may ask for a larger down payment or a higher equity cushion to offset the perceived risk.
• Negotiation room: With a 564 you'll have less leverage to negotiate better terms, so it helps to shop around and compare offers carefully.

You can still qualify for several loan types, but most will come with stricter conditions because a 564 score falls in the poor‑to‑subprime range.

• Secured personal loan - usually requires collateral such as a vehicle or savings account, and may need a co‑signer.
• Credit‑union installment loan - often more flexible than big‑bank products, though approval may hinge on membership and a larger down payment.
• Subprime auto loan - available from lenders that specialize in higher‑risk borrowers; expect higher interest and a sizeable down payment.
• Payday alternative loan - short‑term loans offered by some credit unions with lower fees than typical payday lenders, but still limited amounts and quick repayment schedules.
• Title loan - uses your vehicle's title as security; qualification is easier, but risk of repossession is high if you miss payments.

Only pursue these options if you fully understand the terms and can meet the repayment schedule; otherwise you could damage your credit further.

Yes, you can be approved for a credit card with a 564 score, but you'll typically qualify for secured or subprime products rather than standard unsecured cards.

These cards often come with higher annual fees, lower credit limits and higher APRs, and they may require a security deposit or a larger upfront payment; review the issuer's terms carefully and compare offers before applying. Always read the cardholder agreement before signing up.

At a 564 score you'll generally see higher‑than‑average interest rates because lenders view you as a higher‑risk borrower. Expect rates that sit in the 'sub‑prime' band - often several percentage points above the prime rates offered to scores 700 + - but exact numbers depend on the product, lender and your overall profile.

For illustration, a credit‑card APR might fall somewhere between 15 % and 25 % (example assumes a typical sub‑prime range), while an auto loan could be priced around 8 % to 12 % APR (example assumes standard market conditions). Personal loans often start near 12 % and can climb into the high teens. These figures are not guarantees; they vary by bank, credit union, online lender, state regulations and any additional factors like debt‑to‑income ratio or recent delinquencies. Before you apply, compare offers side‑by‑side and verify the disclosed APR in the lender's agreement.

Check that any quoted rate includes all fees and that you understand how your payment schedule impacts the total cost.

A 564 credit score can clear an auto loan if you target a modest‑price used car, keep the loan amount low, and bring strong compensating factors like a sizable down payment or stable income.

1. Choose a used vehicle under $15,000 (example) - Lenders view lower‑priced cars as less risky, so they're more willing to work with sub‑prime scores.
2. Keep the loan amount small - Borrowing less than the car's value reduces the lender's exposure and improves approval odds.
3. Put down at least 10‑20% - A larger down payment shows you have skin in the game and can offset a lower credit score.
4. Show steady employment and income - Documented earnings for several months give lenders confidence you can meet payments despite the score.
5. Consider a co‑signer or a credit‑worthy partner - Adding someone with a higher score can tip the balance in your favor without changing your own number.

If you meet most of these conditions, many lenders will approve the loan, though rates may be higher than those offered to borrowers with excellent scores. Always verify the required down payment, interest rate range, and any extra fees before signing.

A 564 score can still get approved when your income, debt‑to‑income ratio, and recent credit activity are strong enough to offset the low number.

If you have a stable job, a modest debt load (for example, total monthly obligations under 30 % of your gross pay), and no recent delinquencies, lenders may view you as a manageable risk and extend a secured loan, a subprime auto loan, or a credit‑building card despite the 564 rating. In these situations, the application's 'whole picture' outweighs the raw score, so approval is possible.

Conversely, if you carry high balances relative to income, have recent missed payments or collections, or your credit file is thin with few accounts, the same 564 score often leads to a denial. Lenders see the combination of weak payment history and limited credit depth as too risky, especially for unsecured products, and will decline the request until those factors improve.
(Always verify any offer's terms before signing; some lenders may require a larger down payment or a co‑signer when risk is higher.)

larger down payment Because your credit score shows higher risk, lenders often require a larger down payment to protect themselves. A bigger upfront chunk lowers the loan‑to‑value ratio, reduces the chance you'll default, and gives the lender a cushion if the car's resale value drops.

• Weak credit history - A 564 score signals past payment problems, so a larger down payment reassures the lender you have skin in the game.
• Low collateral value - If the vehicle's market value is modest, putting more money down keeps the loan balance below the car's worth.
• High loan‑to‑value (LTV) concerns - Lenders aim for an LTV well under 100 %; a bigger down payment brings the ratio down and reduces their exposure.
• Potential for better rates - Many lenders will offset a higher risk profile with a lower interest rate if you can increase the down payment.

Make sure you can comfortably afford the upfront amount and verify any required percentage with the lender before committing.

A 564 score can climb quickly if you tackle the biggest credit drags first. Focus on fixing report errors, lowering utilization, and building a clean payment record - those moves shift the needle fastest.

1. Request a free credit report and dispute any inaccurate accounts or late‑payment markings; cleaned‑up errors can boost your score as soon as the bureau updates the file.
2. Pay down revolving balances to below 30 % of each credit limit; lower utilization is one of the strongest, most immediate scoring factors.
3. Set up automatic payments or calendar reminders so every bill hits on time for at least two consecutive months; a streak of on‑time payments shows reliability.
4. Keep old credit card accounts open even if you're not using them; longer average age of accounts helps your score more than closing them would.
5. Avoid opening new credit inquiries for at least six months; each hard pull temporarily reduces your score and adds to perceived risk.

Only pursue actions you can sustain - missed payments or high balances later will undo these gains.

**Check your credit report for costly mistakes right now** - errors, outdated negatives, or mismatched account information can be dragging your 564 score lower than it should be. Request a free copy from the major bureaus, scan each line, and flag anything that looks wrong or belongs to someone else.

Typical red flags include:

• **Incorrect personal data** (misspelled name, wrong address, wrong Social Security number)
• **Accounts that aren't yours** or are listed under the wrong status
• **Late‑payment entries older than seven years** that should have fallen off

If you spot a mistake, gather supporting documents (e.g., bank statements, lender letters) and submit a dispute to the bureau that reported the error. Disputes aren't guaranteed to change your score, but correcting inaccurate information removes an avoidable barrier to better loan terms and card offers. *Always keep copies of your submissions for future reference.*