Who Has a 628 Credit Score?

Credit scores tend to improve with age. While a 628 score is considered “fair,” it falls below the average for every major age demographic. Here's a look at the average FICO score by generation for 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 up): 760

Credit Cards With a 628 Credit Score

A credit score of 628 places you in the "fair" credit range, which can be a mixed bag when applying for new credit cards. While you may find yourself eligible for a variety of cards, including some unsecured options, you'll likely miss out on the premium rewards cards reserved for those with good to excellent credit. Consequently, the cards you do get approved for may come with higher interest rates and lower credit limits, reflecting the increased risk perceived by lenders.

‍

Kudos offers AI-powered tools like its Explore Tool, which provides personalized recommendations based on your financial preferences, such as a need for low interest rates or specific rewards. These recommendations are drawn from a database of nearly 3,000 cards and can even provide insights on how a new card might impact your credit score, ensuring the choice fits your financial goals.

Auto Loans and a 628 Credit Score

A 628 credit score places you in the non-prime borrower category, which means you will likely be approved for an auto loan. However, you should expect to face significantly higher interest rates compared to applicants with better credit scores.

• 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 628 Credit Score

A 628 credit score is enough to qualify for several mortgage options. This score meets the typical 620 minimum for a conventional loan and is well above the thresholds for government-backed programs. This means you are likely eligible for FHA, VA, and USDA loans, assuming you meet their other specific requirements.

However, while you may be eligible, a 628 score will lead to less favorable terms. You can expect higher interest rates—potentially around 7.8% compared to 6.2% for top-tier borrowers. Lenders may also apply stricter underwriting, scrutinizing your debt-to-income ratio and employment history more closely to offset the perceived 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 628 Credit Score

No matter your starting point, improving your credit score is always possible with consistent effort and the right strategies. Whether you're aiming to boost your FICO® or VantageScore, there are proven methods to enhance your creditworthiness and build a healthier financial profile.

• Monitor your credit reports. Regularly checking your reports helps you spot and dispute inaccuracies that could be unfairly lowering your score. Correcting these errors can provide an immediate lift to your 628 credit score.
• Set up automatic bill payments. Since payment history is the single most significant factor in your score, ensuring every bill is paid on time is non-negotiable. Automating payments builds the positive history needed to move beyond a 628 score by eliminating the risk of late payments.
• Lower your credit utilization ratio. High balances on credit cards can significantly drag down your score, so keeping your utilization below 30% is crucial. Paying down debt is a powerful way to improve this ratio and can give your 628 score a relatively quick boost.
• Become an authorized user. Being added to a trusted person's credit card with a strong payment history can add their positive account data to your file. This can help lengthen your credit history and lower your overall utilization, providing a valuable lift to your score.

For more help, the free Kudos browser extension can assist you in maximizing rewards and finding the right credit products for your profile.