Who Has a 602 Credit Score?

Credit scores tend to increase with age, as consumers have more time to build a positive payment history. According to 2023 data from Experian, the average FICO score varies significantly across different generations:

• 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 602 Credit Score

A credit score of 602 places you in the 'fair' credit range, which can be a mixed bag when applying for new credit cards. Lenders generally prefer applicants with good to excellent credit, so a score in this range might signal a higher risk, potentially leading to application denials. While you can still get approved for certain cards, they will likely come with higher interest rates, lower credit limits, and fewer rewards compared to cards for those with stronger credit profiles.

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Kudos' Dream Wallet tool analyzes your real-time spending habits to provide personalized card recommendations that fit your financial situation. The tool also offers insights into how applying for a new card might impact your credit score, helping you make a more informed decision.

Auto Loans and a 602 Credit Score

A 602 credit score places you in the non-prime borrower category, which means that while you can likely get approved for an auto loan, you should expect to be offered a higher interest rate. This higher rate will make your loan more expensive over its lifetime compared to what borrowers with better credit would pay.

Based on Q2 2025 data from Experian, average auto loan rates break down as follows:

• 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 602 Credit Score

With a 602 credit score, your mortgage options are limited but not nonexistent. You likely won't qualify for a conventional loan, as most lenders require a minimum score of 620. However, your score is within the range for an FHA loan, which allows scores of 580 or higher with a 3.5% down payment. You might also be considered for a VA or USDA loan, but many lenders for those programs prefer scores above 620.

A 602 score directly impacts your loan terms, leading to higher borrowing costs. You can expect a higher interest rate than applicants with better credit, which adds up significantly over the life of the loan. For an FHA loan, you will also be required to pay mortgage insurance premiums. Lenders may scrutinize your finances more closely through manual underwriting and could charge higher fees to offset their 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's primarily based on a handful of key financial habits. The most common factors include:

• Your payment history tracks whether you have paid past credit accounts on time.
• Credit utilization is the percentage of your available credit that you are currently using.
• The length of your credit history considers the age of your oldest account and the average age of all your accounts.
• Having a healthy mix of credit types, such as credit cards and installment loans, can positively impact your score.
• Recent credit inquiries and newly opened accounts can temporarily lower your score.

How to Improve Your 602 Credit Score

Your credit score plays a crucial role in your financial life, but the good news is that it's always possible to improve it. There are proven methods to boost your creditworthiness and achieve a healthier financial profile.

• Establish automatic bill payments. Setting up automatic payments ensures you never miss a due date, which is critical since payment history is the most significant factor in your credit score.
• Reduce your credit utilization ratio. Aim to keep your credit card balances below 30% of your total credit limit, as this demonstrates responsible credit management and can significantly improve your score.
• Monitor your credit reports regularly. Checking your reports allows you to spot and dispute inaccuracies that may be unfairly dragging down your 602 score.
• Become an authorized user. Being added to the account of someone with a strong credit history can add their positive payment history and low utilization to your file, giving your score a boost.

To help you maximize rewards while building your credit, consider using a tool like Kudos.