Who Has a 626 Credit Score?

While age isn't a direct factor in credit score calculations, there is a clear correlation showing scores tend to improve over time. According to a 2023 generational breakdown from Experian, average FICO scores increase with each successive age group.

• 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 626 Credit Score

A credit score of 626 places you in the "fair" credit range, which can be a mixed bag when applying for new credit cards. While you may find lenders willing to approve your application, your options will likely be more limited than those available to applicants with good or excellent credit. Consequently, you might face higher interest rates, lower credit limits, and fewer rewards or perks compared to top-tier cards.

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Kudos offers tools like Dream Wallet, which analyzes your spending habits to provide personalized credit card recommendations tailored to your financial situation. The platform also provides insights into how applying for a new card could impact your credit score, helping you make a more informed decision.

Auto Loans and a 626 Credit Score

A 626 credit score places you in the non-prime borrower category, which means you can generally still qualify for an auto loan. However, you should expect to face higher interest rates compared to borrowers with better credit, making your loan more expensive over its term.

Based on an automotive finance report, here are the average interest rates for new and used car loans across different credit score tiers:

• 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 626 Credit Score

A 626 credit score puts you in a position to qualify for several home loans. This score generally meets the minimum requirements for conventional, FHA, VA, and USDA loans, according to a Kudos mortgage guide. While jumbo loans, which typically require scores of 700 or more, are out of reach, you still have access to multiple government-backed and conventional financing paths.

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However, your score will directly impact your loan terms. Expect to pay a higher interest rate than someone with excellent credit, potentially costing you thousands more over the loan's life. For conventional loans, your private mortgage insurance (PMI) will also be more expensive. Lenders are also likely to review your application with greater scrutiny.

What's in a Credit Score?

Understanding your credit score can feel like trying to solve a complex puzzle, as it's a blend of several key financial habits. The most common factors that determine your score 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.
• Credit mix refers to the variety of credit products you have, such as credit cards, retail accounts, and loans.
• New credit inquiries and recently opened accounts can also temporarily impact your score.

How to Improve Your 626 Credit Score

Improving your credit score is entirely possible through consistent, positive financial behaviors. No matter your starting point, there are proven methods to help you build a healthier credit profile and boost your score.

• Monitor your credit reports regularly. Checking your reports helps you spot and dispute inaccuracies that could be dragging down your score, and for someone in the fair credit range, removing even one error can provide a significant boost.
• Set up automatic bill payments. Since payment history is the single biggest factor in your score, automating payments ensures you never miss a due date and avoid the negative marks that often hinder those with fair credit.
• Reduce your credit utilization ratio. High balances signal risk to lenders, so keeping your utilization below 30% is critical; paying down balances is a fast way to improve this ratio, which is the second-most important factor in your score.
• Become an authorized user. Being added to a trusted person's credit card with a strong payment history can help lengthen your own credit history and add positive data to your file.

While working on these steps, consider using the Kudos browser extension to help maximize your credit card rewards.