Is a 587 credit score fair? loans, cards & rates explained

A 587 credit score sits in the borderline‑to‑subprime range, meaning it's below the 'good' threshold that most lenders use for their best rates but still high enough to qualify for many products. In practice, 587 is considered fair by the major credit bureaus' scoring models, yet it signals higher risk to lenders, which often results in stricter terms or higher interest rates. Because it falls just shy of the typical 'moderate' band (around 620‑659), you'll likely encounter more scrutiny on applications and may need to provide additional documentation or a larger down payment. Knowing this helps you set realistic expectations for what loans or cards you might secure and prepares you for the next section on what lenders actually look for when they see a 587.

A 587 score tells lenders you're in the 'sub‑prime' range, meaning they view you as a higher‑risk borrower and will price that risk into any product you receive. Most lenders still run an automated credit model first, then a human underwriter may adjust the decision based on the full file.

Lenders look at three things when they see 587:

• Risk flag - The score is below the typical 'good' cut‑off (around 670), so it triggers stricter underwriting criteria.
• Credit profile gaps - A 587 often comes from limited account history, recent delinquencies, or high credit utilization; lenders weigh those factors individually.
• Compensating factors - Steady income, low debt‑to‑income ratio, or a sizable down payment can offset the low score in some underwriting models.

Practical consequences

• Approval odds: You'll generally qualify for secured loans, some sub‑prime personal loans, and store‑brand credit cards; prime credit cards and most unsecured personal loans are unlikely.
• Interest rates & fees: Expect higher APRs and possibly origination fees because lenders price for the added risk.
• Credit limits: Limits tend be lower than those offered to borrowers with scores above 650.
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You can still qualify for several loan types with a 587 credit score, though you'll likely face higher rates and stricter terms.

• Secured personal loans - Backed by a savings account, CD, or other collateral; lenders often approve scores in the high‑500s because the asset reduces risk.
• Credit‑union personal loans - Many credit unions have more flexible underwriting and may consider membership history and income in addition to credit score.
• Payday alternative loans (PALs) - Small‑amount, short‑term loans offered by state‑licensed lenders; designed for borrowers who can't get traditional payday loans, but APRs are typically very high.
• Auto title loans - Use your vehicle's title as security; approval is possible at low scores, but you risk losing the car if you miss payments.
• Family or peer‑to‑peer loans - Private arrangements or platforms that match borrowers with individual investors may be more forgiving of a 587 score, though rates vary widely.

Before applying, verify the lender's fee structure, repayment schedule, and any state caps on interest. Ensure you can meet the payment terms to avoid further credit damage.

With a 587 credit score you may qualify for basic unsecured cards that target fair‑score borrowers, as well as secured cards that require a cash deposit. Expect lower credit limits and higher APRs than prime‑segment offers, and avoid assuming eligibility for premium rewards products.

Typical options you may qualify for include:

• **Entry‑level unsecured cards** from issuers that market to 'fair' scores (often no annual fee, modest rewards)
• **Secured credit cards** where the required deposit usually equals your initial credit limit
• **Store‑branded credit cards** that tend to have more lenient approval criteria but limited use outside the brand
• **Credit‑builder loans turned into cards** offered by some fintechs or community banks

Before applying, verify the card's interest rate, fees and reporting practices in the cardholder agreement; a single hard inquiry can temporarily affect your score.

Your interest rates will generally be higher because lenders view a 587 score as a sign of greater risk.

A lower score means the lender has less confidence that you'll repay on time, so they price the loan to protect themselves. The exact rate you receive can still vary widely based on the lender's policies, the type of product, and any compensating factors in your application.

• **Perceived credit risk:** A 587 score sits in the 'fair‑to‑poor' band, which signals a higher likelihood of missed payments compared with scores above 700.
• **Limited credit history strength:** With fewer positive accounts or a short track record, lenders have less data to confirm responsible behavior, prompting a risk premium.
• **Score band tiering:** Most issuers group scores below 620 into a higher‑interest tier; even small improvements can move you into a lower‑cost bracket.
• **Product type differences:** Credit cards typically carry higher APRs than auto or personal loans at the same score because they are unsecured.
• **Issuer competition and policies:** Some banks may offer promotional rates to attract borrowers despite a lower score, while others apply stricter pricing across the board.

a 587 score usually translates into paying more over the life of any loan or credit card. Look for lenders that explicitly list how they weight credit scores and consider any additional documentation (stable income, low debt‑to‑income ratio) that could offset the higher rate.

*Always read the full terms and verify current rates directly with the lender before committing.*

A 587 score can move upward quickly if you focus on a few high‑impact actions that lenders weigh most heavily.

1. Pay down revolving balances - Reduce credit‑card utilization below 30 % of each limit, and aim for under 10 % if possible. Lower utilization shows you're not over‑relying on credit and can shave points off a few months' billing cycles.
2. Eliminate any past‑due accounts - Bring current any collections, late payments, or charge‑offs that are still reporting. Once an account is marked current, the negative mark ages and its effect lessens over time.
3. Add a small, secured credit card or a credit‑builder loan - Use it for tiny purchases and pay the balance in full each month. Positive payment history on a new account provides fresh 'good' data for scoring models.
4. Request removal of inaccurate items - Pull your free credit report, flag any errors, and dispute them with the reporting bureau. Corrections that delete false late marks or duplicate entries can instantly improve the score calculation.
5. Keep older accounts open - Don't close long‑standing cards even if you rarely use them; they contribute to your average age of credit, which is a factor that improves gradually as the account ages further.

Safety tip: Verify any new product's terms and fees before opening an account to avoid unexpected costs.

A 587 score sits in the 'fair' band (580‑619), meaning it's modestly better than 'poor' scores but still noticeably lower than 'good' territory.

Nearby score ranges

• 560‑579 (Poor): Lenders often view these as high‑risk; many installment loans and credit cards are unavailable, and if approved, rates are usually at the top of the lender's range.
• 580‑619 (Fair - your range): You may qualify for some secured cards, basic personal loans, and limited credit‑builder products. Interest rates tend to be higher than for 'good' scores, and credit limits are modest.
• 620‑679 (Good): More lenders open their doors, offering a broader selection of unsecured cards and loan options with more competitive rates and higher limits.

Being just 7 points above the poor threshold means you're only slightly better off than a 580 score - still far from the jump into 'good' where pricing improves noticeably. If you can push into the 620 range, you'll see a clear shift in both product availability and cost.

Check your credit reports for any errors; correcting them can move you into the next band without extra effort.

A 587 score can actually work in your favor when the rest of your credit file is strong - for example, a long payment history with no recent delinquencies or a low overall debt‑to‑income ratio. In those cases lenders may view the 587 as an outlier and still offer a loan or card, especially if you have steady employment and a sizable down payment.

*In some situations* a 587 score is less damaging because it qualifies you for sub‑prime products that have flexible underwriting. For instance, a credit‑union auto loan might approve you despite the score if you can provide a larger down payment, and certain secured credit cards can be issued simply on the basis of the cash deposit you make. Before applying, verify the issuer's specific criteria (often listed in the application FAQ) and be prepared to demonstrate income stability or collateral to offset the lower score.

If you need a mortgage now and your credit sits at 587, you'll likely face stricter requirements, higher interest rates, and a longer approval process. Lenders will weigh the score alongside income, debt‑to‑income ratio, and down‑payment size, so a solid financial picture can offset the lower score - but timing becomes critical.

• **Conditional pre‑approval only** - Most banks will give a conditional offer that hinges on additional documentation (pay stubs, tax returns, proof of assets) and may require a larger down payment to compensate for risk.
• **Higher rates or points** - Expect loan rates to sit above the prime range for borrowers with 'fair' scores; some lenders add discount points to lower the rate, which means upfront costs rise.
• **Limited loan programs** - Conventional mortgages are still possible, but FHA or USDA loans often have more flexible credit guidelines and might be easier to qualify for with 587.
• **Tight underwriting timelines** - Because the lender must verify more information, closing can take several weeks longer than for higher‑score borrowers; any delay in paperwork could jeopardize the deal.
• **Potential need for a co‑signer or larger cash reserve** - Adding a co‑borrower with stronger credit or showing extra cash reserves can improve your odds and may reduce the rate.

Check your credit report for errors now, gather all income documentation, and talk to multiple lenders about which programs they offer for scores in the high‑500s before you lock in a rate.