Who Has a 649 Credit Score?

Credit scores generally improve with age, as consumers have more time to build a positive payment history. The average credit scores by generation, based on 2023 Experian data, break down as follows:

• Generation Z (ages 18-26): 680
• Millennials (ages 27-42): 690
• Generation X (ages 43-58): 709
• Baby Boomers (ages 59-77): 745
• The Silent Generation (ages 78+): 760

Credit Cards With a 649 Credit Score

A credit score of 649 places you in the "fair" credit category, which is a common starting point for many people building their credit history. While this score can open the door to several credit card options, you may find that premium travel and rewards cards remain just out of reach for now. Lenders will likely offer you cards with higher interest rates and lower credit limits than those extended to applicants with stronger credit profiles.

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Kudos’ AI-powered tools, like the Explore Tool, help you find the right card by personalizing recommendations based on your financial goals and preferences. For an even more tailored match, the Dream Wallet feature analyzes your spending habits and provides insights into how a new card could impact your credit score.

Auto Loans and a 649 Credit Score

With a 649 credit score, you fall into the non-prime borrower category, meaning you can likely still get approved for an auto loan but should expect higher interest rates. An automotive finance market report shows that this score will result in a more expensive loan over time compared to applicants with stronger credit.

• 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 649 Credit Score

With a 649 credit score, you are in a position to qualify for several types of home loans. You meet the typical 620 minimum for a conventional loan and are well above the 580 threshold for an FHA loan. If you meet other specific criteria, you also likely qualify for VA and USDA loans, which often have no down payment requirements. However, you will not be eligible for a jumbo loan, which typically requires a score of 700 or higher.

While you can get approved, your 649 score will directly impact your loan terms. You can expect to be offered a higher interest rate compared to borrowers with scores in the 700s, which can add up to tens of thousands of dollars over the loan's lifetime. Lenders may also scrutinize your application more closely and could require higher private mortgage insurance (PMI) premiums if your down payment is less than 20%.

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 649 Credit Score

Your credit score plays a crucial role in your financial life, but the good news is that it's not set in stone. With consistent effort, you can use proven methods to improve your creditworthiness and build a healthier financial profile.

• Monitor your credit reports regularly. This allows you to spot and dispute any inaccuracies that could be unfairly dragging down your 649 score. Keeping a close eye on your reports also helps you track your progress as you work to improve your credit.
• Establish 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. Automating payments prevents missed deadlines that could otherwise stall your progress or lower your score further.
• Reduce your credit utilization ratio. Lenders see high balances as a risk, and lowering your utilization below 30% can provide a significant boost. For a 649 score, paying down balances or increasing your credit limits can be one of the fastest ways to see improvement.
• Diversify your credit mix. A 649 score might reflect a limited credit history, so showing you can responsibly manage different types of credit is key. Adding an installment loan to your existing credit cards demonstrates financial maturity to lenders and can help raise your score.

Let Kudos help you find the right credit cards and tools to accelerate your journey to a better score.