Is a 573 credit score bad? Loans, cards & rates explained

A 573 credit score is classified as a low sub‑prime rating, meaning it falls well below the 'good' or 'excellent' ranges most lenders use as a baseline. In practical terms, 573 signals a history of missed payments, high balances, or limited credit activity, and it tells lenders that you represent a higher risk compared with borrowers in the 660‑plus range. Because it sits near the bottom of the typical 300‑850 scale, you can expect fewer loan and credit‑card options, higher interest rates, and tighter terms, though approval is still possible with a strong income or a sizable down payment. In the broader scoring spectrum, scores from 300‑579 are considered 'poor,' 580‑669 'fair,' 670‑739 'good,' and 740‑850 'excellent,' so 573 lands just inside the poor category and serves as the reference point for the rest of this guide.

A 573 score sits in the low‑subprime range, which most lenders classify as 'bad' because it signals a history of missed or late payments, high credit utilization, or limited credit depth; borrowers with this number typically face higher interest rates, smaller loan amounts, and fewer credit‑card offers.

However, a 573 isn't a dead end - some lenders specialize in subprime borrowers and may still approve a loan or card if you can demonstrate recent positive activity, such as a cleared debt or a steady income stream; improving that recent behavior can gradually push the score into the 'fair' band.

• Always verify the terms of any offer before signing to avoid unexpected fees or rates.

qualify for several types of loans, you can still qualify for several types of loans, but approval will depend on the lender's specific criteria, your income stability, and your debt‑to‑income (DTI) ratio.

• **Personal installment loans** - Often offered by online lenders or credit unions; they usually require a DTI under 45 % and proof of steady income (full‑time employment or reliable self‑employment earnings). Loan amounts may be modest, and interest rates are higher than for prime borrowers.
• **Secured loans (auto or home equity)** - Because collateral reduces risk, lenders may accept a 573 score if the vehicle's value or home equity covers the loan amount. A lower DTI (typically below 40 %) and sufficient equity are key factors.
• **Payday alternative loans** - Some state‑licensed lenders provide short‑term cash advances with tighter caps and lower fees than traditional payday loans. Eligibility often hinges on verified income and a DTI that does not exceed roughly 50 %.
• **Co‑signed or joint loans** - If a co‑signer with strong credit agrees to share responsibility, many banks will extend a personal loan even when the primary applicant scores in the mid‑500s. The co‑signer's income and DTI are evaluated alongside yours.
• **Credit builder loans** - Offered by community banks and fintech platforms, these small loans (often $300 - $1,000) are designed to help improve credit. Approval is usually based on income verification rather than credit score alone.

Each option requires you to verify the lender's income documentation requirements, DTI thresholds, and whether the loan is secured or unsecured before applying.

*Always read the loan agreement carefully to understand repayment terms and any fees before signing.*

You can still qualify for a handful of cards that are built for rebuilding credit, though premium rewards cards are unlikely at a 573 score.
Focus on secured cards and entry‑level unsecured cards that report to the major bureaus and have modest fees.

• Secured credit card (deposit‑backed, typically $200 - $500) - most issuers require a cash security but treat it like a regular card once you make on‑time payments.
• Starter unsecured card for fair credit - some banks offer a basic card with no deposit and a low annual fee, aimed at consumers with scores in the 550‑620 range.
• Credit‑builder card from an online lender - often has higher APRs but reports activity to all three bureaus and may waive the annual fee for the first year.
• Retail store card - department‑store or gas‑station cards usually have easier approval criteria; they can help add positive history if you keep the balance low.
• Student or 'first‑time' card - if you're enrolled in school or recently entered the workforce, certain issuers provide a limited‑benefit card that accepts lower scores.

Always read the cardholder agreement to confirm fees, reporting practices, and any deposit requirements before applying.

Because a 573 score flags elevated credit risk, lenders usually offset that risk with interest rates that are higher than the 'prime' or best‑available offers you'd see with a good or excellent score. In practice, you'll often be offered loan or card APRs that sit above the lowest market rates, meaning your borrowing will cost more over time.

What pushes those rates up or down includes the type of product (credit cards tend to have higher APRs than secured personal loans), the length of the loan term (longer terms can attract higher rates), whether you have a co‑signer or provide collateral, and any recent negative items on your report (like late payments). Conversely, a strong income, low debt‑to‑income ratio, or a history of on‑time payments can help pull the rate closer to average levels - so be ready to present those strengths when you apply.

Lenders can still say yes to a 573 credit score when other parts of your application offset the perceived risk.

1. Strong income - If you demonstrate a stable, sufficient paycheck or business revenue, lenders may view the repayment ability as less risky despite the score.
2. Collateral or down payment - Offering a vehicle, home equity, or a sizable down payment gives the lender a safety net that can compensate for lower credit.
3. Established relationship - Long‑standing accounts or a history of on‑time payments with the same bank can persuade them to look past a mid‑range score.
4. Co‑signer or guarantor - Adding someone with stronger credit and reliable income can shift part of the risk away from you.
5. Low loan amount or short term - Smaller balances or shorter repayment periods reduce exposure, making approval more likely even with a 573 score.

Remember: each factor only helps conditionally and does not guarantee approval; always verify the lender's specific criteria before applying.

Lenders can still turn down a loan or credit card even when your score sits around 573, especially if the rest of your application doesn't meet their underwriting standards. A modest score alone isn't a death sentence, but other factors may push the decision toward a denial.
Typical roadblocks include weak or unstable income, which makes it harder to prove you can afford payments; a high debt‑to‑income (DTI) ratio, signaling that existing obligations already consume much of your earnings; recent negative credit events such as collections, charge‑offs, or late payments that suggest higher risk; and stricter program rules that set tighter thresholds for certain products or for borrowers in specific states. If any of these appear in your file, the lender may say no despite the 573 score. Always review the denial letter for the exact reason and consider strengthening the highlighted area before reapplying.

You can lift a 573 score noticeably by tackling the biggest credit‑impact factors first.

1. Pay down revolving balances - Reduce credit‑card usage to below 30 % of each limit; the lower the utilization, the quicker your score improves.
2. Correct any errors on your report - Request a free annual credit report, dispute inaccurate items, and follow up until they're resolved.
3. Become an authorized user on a well‑managed account - If a family member has a long‑standing card with low utilization and on‑time payments, adding you can boost your average age of accounts and overall score.
4. Set up automatic, on‑time payments - Consistently paying at least the minimum avoids new late marks; most scoring models reward a streak of punctual payments within months.
5. Avoid opening new credit lines for at least six months - Each hard inquiry drops your score slightly and adds a new account that lowers the average age, so patience helps the gains from steps 1 - 4 show up faster.

(If you're unsure how to dispute an error or become an authorized user, check your cardholder agreement or contact the creditor's customer service.)

A 573 score usually lands you in the 'fair' range, but lenders start pulling out all the stops when the loan amount is large enough that risk matters more than a simple number.

For example, a first‑time homebuyer with a 573 score may be turned down or offered a loan with a much larger down‑payment requirement if their job history is spotty or they have only a handful of revolving accounts. Likewise, someone trying to finance a $30,000 vehicle could find that lenders either reject the application outright or approve it only after requiring a sizable co‑signer, because the larger loan amplifies any perceived credit weakness. In both cases, the same score that might still qualify you for a small personal loan becomes a roadblock when the amount owed climbs and the lender's risk exposure rises. Verify each lender's specific income and documentation requirements before applying so you don't waste time on applications likely to be denied.