Who Has a 606 Credit Score?

While age isn't a direct factor in credit score calculations, there's a clear pattern of scores improving over time. This is often because older consumers have had more opportunities to establish a long credit history and a track record of on-time payments. Here’s a look at the average FICO score by generation as of 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+): 760

Credit Cards With a 606 Credit Score

A credit score of 606 places you in the "fair" credit range, which can be a mixed bag when applying for new credit cards. While you'll likely find lenders willing to approve your application, you may face less favorable terms such as higher interest rates or lower credit limits compared to applicants with higher scores. Think of it as a starting point; securing a card with this score and managing it responsibly is a key strategy for building your credit history and unlocking better options down the road.

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Kudos offers AI-powered tools like the Explore Tool and Dream Wallet, which provide personalized recommendations based on your preferences or by analyzing your real-time spending habits. This process helps match you with cards that fit your unique financial circumstances, ensuring the recommendations are tailored to your specific needs and goals.

Auto Loans and a 606 Credit Score

A 606 credit score places you in the non-prime borrower category, meaning that while you can likely secure an auto loan, lenders will consider you a higher risk. This typically results in being offered significantly higher interest rates than applicants with stronger credit histories.

According to recent data, here is a breakdown of average auto loan interest rates by credit score bracket for both new and used cars:

• Super-prime (781-850): 5.25% for new cars, 7.13% for used cars
• Prime (661-780): 6.87% for new cars, 9.36% for used cars
• Non-prime (601-660): 9.83% for new cars, 13.92% for used cars
• Subprime (501-600): 13.18% for new cars, 18.86% for used cars
• Deep subprime (300-500): 15.77% for new cars, 21.55% for used cars

Mortgages at a 606 Credit Score

With a 606 credit score, your options are limited but not nonexistent. You likely won't qualify for a conventional loan, which typically requires a minimum score of 620. However, you are in a good position to be approved for an FHA loan, as they accept scores as low as 580 with a 3.5% down payment. While some VA or USDA lenders may consider your application, approval is less certain as they often prefer scores of 620 or higher.

Your 606 score will directly impact your loan terms. Lenders view lower scores as higher risk, which translates to higher interest rates and more expensive mortgage insurance premiums on an FHA loan. You should also expect lenders to scrutinize your finances more closely, possibly requiring a manual underwriting process to approve your loan.

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 606 Credit Score

Having a 606 credit score is not a permanent label; improving your score is achievable with consistent, positive financial behaviors. Here are four proven methods you can use to start building a better score.

• Monitor your credit reports. A 606 score could be dragged down by errors, so regularly checking your reports helps you find and dispute inaccuracies that may be holding you back.
• Set up automatic bill payments. Payment history is the single biggest factor in your credit score, and automating payments ensures you never miss a due date, directly building a positive record over time.
• Reduce your credit utilization. Lenders look closely at how much of your available credit you're using, and keeping your balances below 30% of your limit shows you can manage credit responsibly.
• Become an authorized user. If you have a limited or damaged credit history, being added to an account with a long, positive record can give your score a significant boost from its good payment history.

To help you maximize rewards and find the right credit-building cards, the free Kudos browser extension can guide your financial decisions.