Is a 567 credit score bad? Loans, cards & rates explained

A 567 credit score sits in the 'poor' range (typically 300‑579), so most lenders will view it as higher risk and offer fewer, more expensive options. That doesn't mean you're shut out completely - some subprime loans, secured credit cards, and specialty programs still accept this score, but you should expect higher interest rates, larger deposits, or stricter terms. Before applying, check each lender's specific score requirements and compare offers carefully; even a modest boost of 20‑30 points can open better products and lower costs.

A 567 credit score lands you in the 'fair' range, meaning most lenders view you as a moderate‑risk borrower. You'll likely qualify for many types of credit, but you won't get the best rates or the most generous terms without compensating factors such as a large down payment or a co‑signer.

Lenders view a 567 score as higher‑risk because it suggests past credit problems that could signal future payment difficulty, which often leads to tighter terms or outright denials.

• Recent late payments or collections raise concerns about reliability.
• High credit‑card balances relative to limits indicate potential over‑extension.
• A short or inconsistent credit history gives lenders less data to predict behavior.
• Recent hard inquiries may imply you're actively seeking new credit, increasing perceived risk.
• Any recent bankruptcies, foreclosures, or charge‑offs are strong negative signals.
• Limited mix of credit types (e.g., only revolving accounts) reduces the picture of how you manage different debts.

If these factors appear on your report, expect lenders to price loans higher or require additional documentation; reviewing your credit file and correcting any errors can improve how your risk is assessed.

You can still qualify for several types of loans with a 567 credit score, though approval often depends on income, debt‑to‑income ratio, and the lender's risk tolerance.

• **Secured personal loans** - Backed by collateral such as a savings account or a vehicle, these loans are the most likely to be approved because the lender has a backup asset.
• **Credit‑union installment loans** - Many credit unions offer member‑only loans that consider your relationship and cash flow more than just your score.
• **Payday alternative loans (PALs)** - Offered by some state‑licensed lenders as a lower‑cost option to traditional payday loans; they typically have strict caps and short terms.
• **Title‑loan or pawnshop loan** - May be available if you can pledge a vehicle title or valuable personal property, but they often carry very high fees and should be used cautiously.
• **Co‑signed personal loan** - If a trusted family member or friend with stronger credit co‑signs, the lender may view the application more favorably.
• **Small business microloan** - Some nonprofit microlenders focus on cash‑flow and business plan rather than just credit score, especially for start‑ups or very small enterprises.

Before applying, verify the lender's fees, repayment schedule, and any state‑specific regulations; borrowing beyond what you can comfortably repay can quickly damage your credit further.

A credit card can still be approved with a 567 score, but you'll generally be limited to secured cards, subprime 'starter' cards, and some retail store cards; approval odds are lower than with fair or good scores.

Most issuers place a 567 score in the 'poor‑credit' bucket, so they look for additional risk mitigants - such as a security deposit, steady employment, or a strong income‑to‑debt ratio - before extending credit.

Card types that may approve 567 scores

• Secured credit cards - require a cash deposit equal to your credit limit; the deposit reduces the lender's risk.
• Subprime consumer cards - marketed to rebuild credit; often have higher fees and lower limits.
• Retail or co‑branded store cards - typically easier to obtain because they're tied to a specific merchant; they may carry higher interest rates.
• Credit‑builder loans turned into cards - some fintech platforms issue a card after you complete a small installment loan that builds your payment history.

Even within these categories, approval is not guaranteed. Expect higher annual fees, lower credit limits, and APRs that are above average compared with cards for better scores. Always read the cardholder agreement and verify any fees before applying.

If you're approved, use the card responsibly - pay on time and keep utilization low - to improve your score faster.

Borrowers with a 567 credit score usually see APRs that sit in the higher‑risk band, meaning lenders charge more to offset the perceived chance of default. In contrast, someone with a strong score (e.g., 700+) typically qualifies for the lowest‑cost rate tiers.

What you can expect at a 567 score

• Personal loans: often fall into double‑digit APR ranges (e.g., 12% - 20%); higher‑scoring borrowers may see single‑digit rates.
• Auto loans: rates commonly land in the low‑ to mid‑teens, while prime borrowers often get sub‑7% offers.
• Credit cards: interest tends to start around 20% and can climb above 25%; prime cards frequently sit below 15%.
• Key factors: lender type (traditional bank vs. online lender), loan term, secured vs. unsecured status, state regulations, and any recent improvements or setbacks in your credit history.

Check each offer's APR disclosure and compare it to other lenders before committing; the exact rate will depend on the specific product and your overall financial picture.

A 567 credit score typically means you'll pay more for the credit you do get because lenders view the risk as higher. That extra cost shows up most often as higher interest rates, larger fees, or required deposits.

Where the extra cost appears

• Higher loan APRs - lenders offset risk by charging a steeper rate, so a $10,000 personal loan can cost several hundred dollars more in interest over its term compared with a borrower with a good‑score range.
• Origination or processing fees - some lenders add a flat fee (for example, 2‑3% of the loan amount) that many borrowers with stronger scores avoid.
• Security deposits on secured credit cards - issuers may require an upfront cash deposit equal to your credit limit before extending the card.
• Higher mortgage insurance premiums - when your score falls below typical FHA thresholds, private mortgage insurers often raise the monthly premium.
• Limited promotional offers - balance‑transfer or 0% APR promos are rarely extended to scores in the mid‑500s, meaning you miss out on potential savings.

Always ask for the disclosed APR and any fees before signing, and compare multiple offers to minimize these added costs.

*Safety note: Verify all fee amounts and rate calculations in the official loan or card agreement before committing.*

sub‑prime A 567 credit score can get you approved in a few niche situations, but it's still considered sub‑prime and won't guarantee the best terms.

If a lender's underwriting criteria are flexible - often the case with smaller banks, credit unions, or online lenders that specialize in rebuilding credit - you may still qualify for a basic installment loan, a secured credit card, or a rent‑to‑own agreement. These products usually come with higher interest rates, lower limits, or required collateral, so they're best for short‑term needs while you work on improving your score.

Situations where a 567 score may be enough:

• Secured credit cards that require a cash deposit equal to your credit limit.
• Small personal loans from community banks or credit unions that focus on local relationships.
• Rent‑to‑own or lease‑to‑own programs that treat the down payment as security.
• Utility or cell‑phone service plans that perform a soft credit check only.
• 'pay‑day' style loan apps that market to borrowers with limited credit history (use caution and read all terms).

Verify the exact approval criteria and total cost before signing any agreement; even in these scenarios the terms will usually be less favorable than those offered to borrowers with higher scores.

Your credit score can climb with a few disciplined steps, even if you're sitting at 567 today.

1. **Pay all bills on time** - Payment history is the biggest factor, so set up reminders or automatic payments to avoid missed due dates.
2. **Reduce credit‑card balances** - Aim to keep utilization below 30 % of each limit; paying down existing balances lowers the overall ratio that lenders see.
3. **Avoid new hard inquiries** - Each application for credit generates a hard pull that can dip your score temporarily, so only apply when you truly need the account.
4. **Keep old accounts open** - Length of credit history matters, so resist the urge to close long‑standing cards unless they carry high fees you can't afford.
5. **Correct any errors on your report** - Request a free copy of your credit file, review it for inaccurate entries, and dispute mistakes with the reporting bureaus.
6. **Add a positive tradeline** - If you have limited credit, consider becoming an authorized user on a trusted family member's account or using a secured credit card, which can demonstrate responsible use.
7. **Monitor your score regularly** - Use a reputable free monitoring service to track progress and spot unexpected changes early.

*Always verify terms directly with your lender or card issuer before taking action.*