What Does 590 Credit Score Mean?
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A credit score helps banks and other financial firms estimate whether you have the ability to pay off your debts in the given time frame, as it indicates your behaviour towards financial planning. As a result, this score plays a significant role in determining whether you are eligible to secure a loan or credit card in the UAE.
A credit score can range anywhere between 300 and 900, with the extremes implying very low to very high credit scores, respectively. Having a credit score of, say, 590, will have practical implications when you apply for a new credit card or loan product. This write-up will help you understand the significance of a 590 credit score and the loan and credit card options available for a 590 credit score.
What Does 590 Credit Score Mean?
A 590 credit score in the UAE will fetch you a 2-star rating and is considered ‘low’. It showcases either your lack of credit history or your inability to pay off past debts. In situations like these, getting a personal loan, mortgage, or credit card can become difficult.
With a 590 credit score, lenders are likely to charge higher rates of interest to mitigate the risk. However, having your loan approved at higher interest rates means that your borrowing costs will increase as well.
What Can a 590 Credit Score Get You?
While it may be difficult to secure a loan or new credit card with a 590 credit score, it does not mean that there are no chances of approval. There are certainly chances that you will need to pay a higher rate of interest. With that, however, availing of your desired financial product can be possible.
Even if you have a 590 credit score, you can get -
Credit Cards for 590 Credit Score
As discussed earlier, it will be challenging to get credit card approval with a 590 credit score. Even if you manage to obtain one, you won’t be able to enjoy the same benefits as an individual with a high credit score can while the credit limit will also be restricted.
At the same time, getting a credit card with a 590 credit score can help you improve your creditworthiness over a period if you pay off your card bill regularly.
The following are the types of credit cards that you can get with a 2-star credit score –
Secured Credit Cards -
With a 590 credit score, you can get a secured credit card in the UAE. For this, you would be required to do a cash deposit as collateral. This deposit will work as a security in case you fail to make payments regularly. It should be noted that the amount provided in the deposit will determine your card limit to a certain extent.
Unsecured Credit Cards -
You can avail of an unsecured credit card with your 590 credit score. However, most banks in the UAE will charge heavy interest and a high-maintenance fee on this card.
Personal Loan for 590 Credit Score
While you can get a personal loan with a 590 credit score, you won’t be able to negotiate terms like interest and the amount of the loan. Similarly, there are lower chances of you getting a low-interest rate on the loans.
Similar to the secured credit card, some lenders may provide you with a secured personal loan where your provided asset will serve as collateral. In case you fail to make regular repayments, the collateral will be taken into possession.
Home Loans for 590 Credit Score
You can secure a home loan even with a 590 credit score, as there are several loan offers even for individuals with low credit scores. If your loan application is approved, however, you will be charged a higher interest rate.
Another aspect to remember here is that the application process for a home loan may last longer if you have a 590 credit score. This is because the provider may prefer to first monitor your financial management to verify if you can make the repayments in time.
Auto Loans for 590 Credit Score
You can get a car loan with a credit score as low as 590, although the approval process could prove troublesome. Similarly, the interest rate would be higher than for individuals with a good credit score. Some alternatives that the bank may ask you to consider in such cases are finding a co-signer or paying a large portion as a down payment.
Insurance Plans with 590 Credit Score
While credit score does not directly relate to the insurance plans, insurance providers still consider it a key factor in determining the premium that you would need to pay. So if you have a 590 credit score, you may need to pay higher premiums.
Tips to Improve Your 590 Credit Score
Discussed below are some actions that you can perform to improve your credit score:
Bill Payment on Time –
By paying your credit card bills by the due date, you can easily improve your 590 credit score, as the timely repayment of credit dues (or lack of) is one of the key factors in determining your credit score.
Regular Credit Monitoring -
You can maintain and improve your credit score if you regularly check your score. With this, you can also detect inaccuracies in your credit report and fix them right away.
Reduce the Total Debt -
If you have large amounts of debt, very few banks will be willing to lend you money. Moreover, delayed or unpaid loan instalments can quickly lead to a drop in your credit score. Thus, to increase your 590 credit score, you can try to pay off your debt.
Control your Expenditures -
If you regularly shop using a credit card, keep an eye on your expenditures. Overspending or spending beyond the credit card limits can often result in debt creation and even a reduction of your credit score.
How to Check Your Credit Score for Free?
Owing to the partnership between the AECB and Policybazaar UAE, you can now check your credit score for free in the UAE! Doing this is quite easy, as you can check out the ‘Credit Card’ category on our website and go to the ‘credit score’ option. You can then provide a few relevant details and access your credit score for free with policybazaar.ae.
Key Takeaways
A credit score of 590 indicates either an absence of credit history or poor financial management which resulted in delayed or pending dues and debts. With such a score, it becomes challenging to obtain a personal loan, mortgage, or credit card.
With a 590 credit score, getting credit card approval is challenging. Moreover, even if you do, you won’t be able to take advantage to the extent someone with a good credit score does. As far as personal loans are considered, a credit score of 590 is generally acceptable although you will not be able to negotiate over interest rates or loan amounts. Similar would be the case with auto loans, as you will be able to secure them only at higher interest rates. Finally, you may be required to pay higher premiums for your insurance plan.
To ensure that you get a credit card or a loan at affordable interest rates, you should aim to improve your credit score by managing your credit dues and loan instalments as well as monitoring your expenditures and credit scores regularly. With Policybazaar UAE, you can complete the process of checking your credit score for free!
| Learn More about Other Credit Score | ||||||
|---|---|---|---|---|---|---|
| 500 | 600 | 633 | 650 | 680 | 700 | 703 |
| Credit Score for different types of Loan | ||
|---|---|---|
| Credit Score for Personal Loan | Credit Score for House Loan | Credit Score for Car loan |
