Who Has a 636 Credit Score?

While age isn't a direct factor in calculating your credit score, data shows a clear trend of scores increasing over time. According to 2023 Experian data, the average credit scores for different generations are:

• 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 636 Credit Score

A credit score of 636 places you in the "fair" credit range, which can be a mixed bag when applying for new credit cards. While you'll likely be approved for some cards, you may not qualify for premium options with the best rewards or lowest interest rates. Lenders might also offer you a lower credit limit and a higher APR until you demonstrate a longer history of responsible credit use.

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Kudos can help you find the right card for your situation with its AI-powered tools, which provide personalized recommendations based on your financial goals or actual spending habits. The platform also offers insights into how a new card might impact your credit score, helping you make a choice that aligns with your current credit standing.

Auto Loans and a 636 Credit Score

A credit score of 636 places you in the non-prime borrower category, which means you will likely be approved for an auto loan. However, lenders associate this score with a higher risk, resulting in interest rates that are less favorable than those offered to borrowers with better credit.

• Super-prime (781-850): The average interest rates are 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 636 Credit Score

With a 636 credit score, you meet the minimum credit score requirements for several major home loans, including conventional, FHA, VA, and USDA loans. This score puts you above the threshold for most mainstream mortgage products, giving you multiple paths to homeownership. However, jumbo loans, which are used for higher-priced homes, typically require a score of at least 700 and would likely be out of reach.

While you are eligible for these loans, a 636 score will affect your terms. You can expect to be offered a higher interest rate than applicants with stronger credit, potentially costing you tens of thousands more over the life of the loan. For conventional loans, you will also face higher private mortgage insurance (PMI) premiums if you put down less than 20%.

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 636 Credit Score

No matter your starting point, improving your credit score is always possible with consistent, positive financial habits. Whether you're looking to boost your FICO® or VantageScore, there are proven methods to enhance your creditworthiness.

• Monitor your credit reports. Regularly check your free reports from AnnualCreditReport.com for inaccuracies that could be dragging your score down. Disputing and correcting errors is one of the fastest ways to see a potential score increase.
• Set up automatic bill payments. Your payment history is the single most important factor in your credit score, so ensuring every bill is paid on time is critical. This simple step prevents late payments, a common reason for a score in the fair range, from further damaging your credit.
• Reduce your credit utilization ratio. Aim to use less than 30% of your available credit, as high balances can significantly lower your score. Paying down debt is a powerful move that directly addresses the second most influential factor in your credit calculation.
• Become an authorized user. Being added to an account with a long, positive history can add that account's good standing to your own credit file. This can help lengthen your credit history and lower your overall utilization, providing a boost to your score.

To help you maximize rewards while you build your credit, the Kudos browser extension can recommend the best card for every purchase.