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589 Credit score: What You Need to Know in 2025
July 1, 2025
TL;DR
A 589 credit score is a starting point with considerable room for improvement, giving you a clear path to build toward your financial goals. This score falls into the "Poor" category on the FICO scale, which means you have a great opportunity to see significant progress with a few strategic moves.
What Does a 589 Credit Score Mean?
A credit score of 589 falls into the "fair" range on the FICO scale, which runs from 300 to 850. Lenders often consider this score to be subprime, meaning you may face hurdles when applying for new credit. Securing approvals for mortgages, auto loans, or credit cards can be more difficult. If approved, you'll likely encounter higher interest rates and less favorable terms, making borrowing more costly.
Fortunately, a 589 score is not permanent. It reflects your credit history up to this point, but it can change. Think of it as a foundation from which you can build. By focusing on your financial habits, you can work toward improving your score over time, which will eventually unlock better borrowing opportunities and more financial flexibility.
Who Has a 589 Credit Score?
While age isn't a direct factor in credit score calculations, data shows a clear trend of scores increasing over time. Here is the breakdown of average FICO scores by generation, based on 2023 Experian data:
- 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 589 Credit Score
A 589 credit score places you in the "fair" credit range, which can make qualifying for many traditional credit cards a bit of a hurdle. Lenders often view scores in this range as higher risk, which typically translates to higher interest rates and lower credit limits if you are approved. While top-tier rewards cards may be out of reach for the moment, there are still several credit card options available, particularly those designed to help individuals build or rebuild their credit history.
Kudos offers AI-powered tools that provide personalized credit card recommendations based on your unique financial goals and spending habits. These tools help you compare options and offer insights into credit impacts, ensuring you can find a card that is appropriate for your current credit situation.
Auto Loans and a 589 Credit Score
A 589 credit score places you in the subprime lending category, which means getting an auto loan is possible but will likely come with significant hurdles. You can expect lenders to offer you much higher interest rates, making your loan more expensive over its lifetime.
- Super-prime (781-850): 5.25% for new cars and 7.13% for used cars, according to 2025 industry analysis
- 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 589 Credit Score
A 589 credit score limits your mortgage options, but you still have them. While you likely won't qualify for a conventional loan, which usually requires a score of 620 or higher, you are in range for an FHA loan. According to FHA guidelines, scores of 580 and up are eligible with a 3.5% down payment. Other government-backed loans, like VA or USDA, are less likely as lenders often prefer higher scores.
This score will lead to less favorable loan terms. You can expect a significantly higher interest rate, increasing your monthly payment and total interest paid. With an FHA loan, you will also be required to pay mortgage insurance premiums. Lenders may also cap your loan amount and will scrutinize your finances more closely during underwriting.
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 589 Credit Score
Improving your credit score is not only possible, it is achievable through consistent, positive financial behaviors and the right strategies. Meaningful changes can often be seen within three to six months of dedicated effort.
- Monitor your credit reports. Checking your reports allows you to find and dispute errors or fraudulent activity that could be dragging down your score. For someone with a 589 score, correcting even one inaccuracy can result in a significant boost.
- Establish automatic bill payments. Your payment history is the most important factor in your credit score, so paying on time is non-negotiable. Setting up auto-pay ensures you build the positive payment history needed to move out of the poor credit range.
- Reduce your credit utilization ratio. High balances are a red flag to lenders, so aim to keep your credit card usage below 30% of your total limit. This action shows you can manage credit responsibly and can quickly improve your score.
- Apply for a secured credit card. Specifically designed for those with damaged credit, these cards require a security deposit and report your payments to the credit bureaus. This provides a direct path to establishing the positive history essential for rebuilding your credit profile.
Using a tool like the Kudos browser extension can help you make smarter credit decisions and maximize rewards as your score improves.
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