Who Has a 398 Credit Score?

While a 398 credit score is significantly below average for any age demographic, it's useful to see how scores generally trend across different generations. Data shows that, on average, credit scores improve with age. According to 2023 Experian data, the average FICO score breakdown by generation is as follows:

• 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 398 Credit Score

A credit score of 398 is considered very poor, placing you in the lowest range of credit scores and significantly impacting your ability to obtain a credit card. Most lenders will view an applicant with this score as high-risk, leading to immediate denials for the majority of traditional, unsecured credit cards. Your options will likely be restricted to products specifically designed for building credit, such as secured credit cards, which require a cash deposit to open.

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Kudos offers tools like the Explore Tool and Dream Wallet, which provide personalized recommendations based on your unique financial situation and preferences. These tools can help you find suitable options from a database of nearly 3,000 cards and even offer insights into how applying might affect your credit score.

Auto Loans and a 398 Credit Score

A 398 credit score places you in the deep subprime category, which can make securing an auto loan challenging. While approval is still possible, you should expect to face significantly higher interest rates and less favorable loan terms, according to a 2025 analysis.

• 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 398 Credit Score

A 398 credit score is considered extremely poor and falls well below the minimum for nearly all mortgage products. According to mortgage requirements, even the most accessible government-backed FHA loans require a score of at least 500. As a result, your eligibility for any traditional home loan is highly improbable.

In the rare event a specialty lender considered your application, the impact on the loan would be severe. You would face significantly higher interest rates, a much larger down payment requirement, and extra fees. The loan would also undergo strict manual underwriting, where lenders scrutinize your entire financial profile for risk.

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 398 Credit Score

A low credit score can feel limiting, but it doesn't have to be permanent. There are several proven methods to improve your creditworthiness, and consistent positive behavior can lead to meaningful changes.

• Monitor your credit reports regularly. This helps you spot and dispute any errors that could be dragging down your score, and for someone with very poor credit, removing even one inaccuracy can provide a significant boost.
• Establish automatic bill payments. Since payment history is the single biggest factor in your score, automating payments ensures you never miss a due date and can begin building a positive track record.
• Apply for a secured credit card. A secured card is an accessible tool for rebuilding credit, as your on-time payments are reported to the major bureaus and establish the positive history needed to raise your score.
• Address collection accounts. Old debts in collections can severely damage your score, so contacting the agency to negotiate a settlement can help lessen or remove this negative mark from your report.

To help manage your cards and make smarter spending decisions on your credit-building journey, consider using a tool like Kudos.