560 is generally considered a bad credit score. You’ll usually struggle to qualify for any form of credit that involves a credit check. If you do manage to get approval for an account, it will likely have a much higher interest rate than you’d prefer.
FICO Scores, the most popular credit scores, range from 300 to 850. The Fair Isaac Corporation (FICO) officially labels anything below 580 a poor credit score. The national average was 716 in 2021, which means 560 is much lower than most.
That said, you can still potentially qualify for some types of credit accounts with a 560 credit score. You can also increase your creditworthiness relatively quickly with the right strategy.
Let’s look at the odds of getting approval for some popular types of credit with a 560 credit score, then discuss what you can do to improve those odds over time.
Is 560 a Good Credit Score for a Mortgage?
Unfortunately, with a 560 credit score, most mortgage lenders won’t be interested in working with you. While the minimum credit score for a home loan varies depending on the lender and the type of loan, they all generally want a score higher than 560.
For example, here are some of the typical requirements for some popular types of mortgages:
- Conventional Loan: You usually need to have a credit score of at least 620 to qualify.
- VA Loan: The Department of Veterans Affairs (VA) doesn’t have any credit score requirements, but the lenders who provide their loans set their minimums between 580 and 620. These loans are only for people who meet specific military service requirements.
- USDA Loan: Like the VA loan, the United States Department of Ag