Who Has a 587 Credit Score?

While a 587 credit score is considered poor, it's helpful to see how it compares to the averages across different age groups. According to 2023 data on average credit scores by generation, scores generally improve with age:

• Generation Z (ages 18-26): 680
• Millennials (ages 27-42): 690
• Generation X (ages 43-58): 709
• Baby Boomers (ages 59-77): 745
• Silent Generation (ages 78+): 760

Credit Cards With a 587 Credit Score

A credit score of 587 places you in the "fair" credit category, which can make qualifying for a new credit card a bit challenging. Lenders often view scores in this range as indicating a higher risk, so you may find it difficult to get approved for many traditional unsecured cards. If you are approved, you'll likely be looking at options such as secured credit cards or unsecured cards with higher interest rates and annual fees.

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Kudos can help you find the right card with its Explore Tool, which uses a quiz to match your preferences against a database of nearly 3,000 cards. Additionally, its Dream Wallet feature analyzes your actual spending to provide insights on how a new card might impact your credit score and whether its annual fee makes sense for you.

Auto Loans and a 587 Credit Score

A credit score of 587 places you in the subprime borrower category, which will significantly impact your auto loan options. Lenders generally view applicants in this range as higher-risk, which often results in much higher interest rates compared to borrowers with better credit.

Based on Q2 2025 Experian data, here is a breakdown of the average auto loan interest rates for each credit score bracket:

• Super-prime (781-850): 5.25% for new cars and 7.13% for used cars
• Prime (661-780): 6.87% for new cars and 9.36% for used cars
• Non-prime (601-660): 9.83% for new cars and 13.92% for used cars
• Subprime (501-600): 13.18% for new cars and 18.86% for used cars
• Deep subprime (300-500): 15.77% for new cars and 21.55% for used cars

Mortgages at a 587 Credit Score

While a 587 credit score is below the typical 620 minimum for a conventional loan, you still have options. Your score likely qualifies you for an FHA loan, which allows for a 3.5% down payment with a score of 580 or higher. According to mortgage loan requirements, VA and USDA loans might be possibilities, but most lenders for those programs prefer scores above 620.

A 587 credit score will directly impact your loan terms. You can expect to face higher interest rates compared to borrowers with stronger credit. For an FHA loan, you will also be required to pay mortgage insurance premiums. Lenders will likely apply stricter underwriting, scrutinizing your income, debt, and employment history more closely before approval.

What's in a Credit Score?

Understanding your credit score can feel like trying to solve a complex puzzle, as it's a blend of several key financial habits. The most common factors that determine your score include:

• Your payment history tracks whether you have paid past credit accounts on time.
• Credit utilization is the percentage of your available credit that you are currently using.
• The length of your credit history considers the age of your oldest account and the average age of all your accounts.
• Credit mix refers to the variety of credit products you have, such as credit cards, retail accounts, and loans.
• New credit inquiries and recently opened accounts can also temporarily impact your score.

How to Improve Your 587 Credit Score

A 587 credit score can feel limiting, but it is not a permanent mark on your financial record. With consistent effort and the right strategies, it is entirely possible to improve your creditworthiness and unlock better financial opportunities.

• Establish automatic bill payments. This simple step helps ensure you never miss a due date, which is crucial for building a positive track record. Since payment history is the most significant factor in your credit score, making consistent, on-time payments is a powerful way to start improving your 587 score.
• Reduce your credit utilization ratio. Aim to use less than 30% of your total available credit. Lowering this ratio demonstrates to lenders that you can manage debt responsibly and are not overextended, which can provide a significant boost to your score.
• Monitor your credit reports. Regularly check your reports from the major credit bureaus to identify and dispute any inaccuracies. Correcting errors can remove negative marks that are unfairly dragging down your score.
• Become an authorized user. Ask a trusted family member or friend with a strong credit history to add you as an authorized user on one of their accounts. Their positive payment history and low credit utilization can be added to your credit file and help improve your score.

As you build better credit habits, you can use tools like the Kudos browser extension to help you maximize your credit card rewards.