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The average U.S. credit score was 715 in 2023, says Experian, one of the three credit bureaus. And that score is considered good (though not great).

A credit score of under 600, on the other hand, could be considered fair to poor, depending on how low it is. And with a sub-600 credit score, you might end up paying more the next time you borrow money.

For example, say you need to finance a car. With a 590 credit score, you might get stuck with a higher interest rate than someone with a credit score of 640, leading to higher monthly payments for you.

But that’s not the only problem with having a credit score of under 600. Here are some less obvious pitfalls you might encounter.

1. You might struggle to get a mortgage

It takes a minimum credit score of 620 to get a conventional mortgage. This doesn’t mean you won’t be able to get a mortgage with a score of under 600 at all. But your options for lenders and even mortgages themselves may be more limited.

You may, for example, have to apply for an FHA home loan, which could leave you paying costly mortgage insurance premiums for a long time. With a conventional mortgage, you can avoid paying extra provided you put down 20% at closing.

2. You may be limited to prepaid cellphone service

It’s common for people to sign up for cellphone service and pay for it each month after you use it. With a low credit score, your carrier may not be willing to make that arrangement. Instead, you may be limited to prepaid phone service plans until your score improves.

3. You may have to make a large deposit for utility service

If you have good credit when you sign up for utility services, like electricity and water, you can often avoid having to make a deposit at the time. But with poor credit, your utility company may require some money down to start your service. This’ll mean you have to dip into your savings account for the extra money.

How to boost your credit score

Clearly, having a sub-600 credit score could put you in a tough spot. So it’s best to try to raise that number. And one way to go about that is to pay all bills on time. Set calendar reminders so you don’t forget to make payments, or sign up for automatic payments where it makes sense to do so.

Next, try to reduce balances on your credit cards. The less you owe relative to your total credit limit, the more your credit score is likely to improve.

One way to pay off credit card debts more easily and quickly is to consolidate them onto a single card with a 0% introductory interest rate. Click here for a list of the best balance transfer credit cards to make that happen.

Finally, check your credit report from each of the three bureaus for errors. In addition to Experian, you’ll want to see what Equifax and TransUnion have on file for you.

If your credit report contains false information that makes you seem like a less reliable borrower, it’s enough to drag your credit score down. But fixing mistakes, like records of late payments you were actually on time with, could help your score rise substantially.

Having a credit score under 600 makes borrowing money tough. But clearly, there are financial consequences beyond that. So it pays to do what you can to give your credit score a lift.

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