Who Has a 588 Credit Score?

While a 588 credit score is below the average for any age demographic, scores generally improve over time. According to 2023 Experian data, here is the breakdown of average FICO scores by generation:

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

Credit Cards With a 588 Credit Score

A credit score of 588 falls into the "fair" credit range, which can present some challenges when applying for a new credit card. Lenders generally view scores in this range as higher risk, meaning you may face rejections for many traditional, unsecured cards with premium rewards. Your most likely options will be secured credit cards or unsecured cards designed for building credit, which often come with higher interest rates and lower credit limits.

‍

Kudos offers AI-powered tools like the Explore Tool to find cards based on your financial goals and Dream Wallet to match options to your actual spending habits. These tools also provide insights into how a new card might impact your credit, ensuring you can find the right fit for your financial situation and credit-building needs.

Auto Loans and a 588 Credit Score

A 588 credit score places you in the subprime category, which can make securing an auto loan more challenging and expensive. While approval is still possible, lenders will likely offer you significantly higher interest rates due to the perceived risk.

According to Experian’s Q2 2025 data, here is a breakdown of average auto loan interest rates by credit score:

• 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 588 Credit Score

While a 588 credit score will limit your mortgage options, it doesn't completely shut you out. This score is below the 620 minimum for most conventional loans, but it meets the criteria for an FHA loan. According to mortgage credit score requirements, FHA guidelines permit scores of 580 or higher with a 3.5% down payment. USDA or VA loans may also be a possibility, though most lenders prefer higher scores.

‍

With a 588 score, expect to face less favorable loan terms. You will likely receive a higher interest rate and pay more in fees. For an FHA loan, this includes pricier mortgage insurance premiums. Lenders may also scrutinize your finances more closely through manual underwriting to offset the risk associated with a lower credit score.

What's in a Credit Score?

Figuring out what goes into your credit score can feel like trying to solve a complex puzzle, but it generally boils down to a handful of key elements. The most common factors include:

• Your history of making payments on time is the most significant factor.
• How much of your available credit you're currently using, known as your credit utilization ratio, plays a major role.
• The age of your credit accounts, including the average age and the age of your oldest account, is also considered.
• Lenders like to see that you can responsibly manage different types of credit, such as credit cards and loans.
• Opening several new credit accounts in a short period can be seen as a risk and may temporarily lower your score.

How to Improve Your 588 Credit Score

Your credit score plays a crucial role in your financial life, but it's not set in stone; with consistent effort, it is always possible to improve your creditworthiness. There are several proven methods you can use to start rebuilding your score.

• Monitor your credit reports. Regularly checking your reports helps you spot and dispute inaccuracies that could be unfairly dragging your score down, and it allows you to track your progress as you build better credit.
• Set up automatic bill payments. Since payment history is the single biggest factor in your score, automating payments is the best way to prevent the late marks that are likely contributing to a 588 score.
• Lower your credit utilization. High balances signal risk to lenders, so reducing your credit utilization ratio below 30% can provide a significant boost to your score.
• Become an authorized user. This allows you to benefit from the positive payment history of a trusted friend or family member, which can be a powerful way to add positive data to your credit file.

As you work to improve your score, the Kudos platform can help you maximize rewards and make smarter spending decisions with your existing cards.