Who Has a 304 Credit Score?

Credit scores tend to improve with age as people have more time to build a positive payment history. Here is the breakdown of average FICO scores by generation from 2023:

• 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 and older): 760

Credit Cards With a 304 Credit Score

A credit score of 304 falls into the "very poor" range, which can significantly hinder your ability to qualify for most traditional credit cards. Lenders view this score as an indicator of high risk, meaning you're likely to face rejections from mainstream card issuers. Your options will probably be limited to products specifically designed for building credit, such as secured credit cards, which often require a security deposit and come with less favorable terms.

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Kudos offers AI-powered tools that provide personalized credit card recommendations based on your stated preferences and financial goals. These tools offer insights into how different cards may impact your credit score, helping you make an informed decision that suits your specific financial situation.

Auto Loans and a 304 Credit Score

A 304 credit score places you in the deep subprime category, making it more difficult to secure an auto loan. While approval is still possible, you will likely face the highest auto loan interest rates and least favorable terms available.

• 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 304 Credit Score

With a 304 credit score, traditional mortgage options are essentially unavailable. Most lenders, including those offering government-backed programs, have minimum score requirements that are significantly higher. For instance, FHA loans typically require a score of at least 500, while conventional loans usually start at a 620 minimum. According to mortgage requirement data, scores below 580 are considered "bad" credit, and very few mortgages are approved for borrowers in this range.

If you could find a specialty lender willing to consider your application, a low credit score would drastically impact the loan terms. You would face substantially higher interest rates, which could add tens of thousands of dollars to the total cost of your loan. Lenders would also likely require a much larger down payment and charge higher fees to offset the significant risk associated with a low 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 payment history, which tracks whether you pay your bills on time, is the most significant factor.
• Credit utilization, or the amount of credit you're using compared to your total available credit, also plays a major role.
• The length of your credit history demonstrates your experience with managing credit over time.
• Having a healthy mix of different types of credit, such as credit cards and installment loans, can positively impact your score.
• Finally, recent credit inquiries, which occur when you apply for new credit, are also taken into account.

How to Improve Your 304 Credit Score

While a 304 credit score is considered very poor, it is possible to improve it, with many people seeing meaningful changes within three to six months of consistent, positive financial behavior. Here are four actions you can take to begin rebuilding your credit:

• Monitor your credit reports. Regularly check your reports for errors or inaccuracies that could be unfairly dragging down your score. Disputing and removing even one mistake can provide a significant boost when starting from a very low score.
• Make on-time payments. Your payment history is the single most important factor in your credit score, so setting up automatic payments is crucial. Establishing a consistent record of paying bills on time is the most fundamental step toward recovering from a 304 score.
• Become an authorized user. Ask a trusted friend or family member with a good credit history to add you as an authorized user on their credit card. This allows you to benefit from their positive payment history and low credit utilization, which can help improve your own credit profile.
• Apply for a secured credit card. A secured card requires a cash deposit as collateral, making it easier to get approved for with a very low credit score. Using it responsibly and making timely payments will be reported to the credit bureaus, helping you build a positive credit history from the ground up.

To help manage your cards, maximize rewards, and monitor your score as you improve it, you can use a financial companion like Kudos.