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340 Credit score: What You Need to Know in 2025
July 1, 2025
TL;DR
A 340 credit score is considered low, but it provides a clear starting point for building a stronger financial profile. This score falls into the “Poor” FICO score category, which means there are significant opportunities for improvement.
What Does a 340 Credit Score Mean?
A credit score of 340 is at the lowest end of the standard FICO Score range of 300 to 850. It falls squarely into the "very poor" category, signaling to potential lenders that you represent a significant credit risk. This score typically reflects a history of serious financial difficulties, such as consistent late payments, loan defaults, or even bankruptcy, making it very challenging to be approved for new credit.
Financially, a 340 score can be a major roadblock. You'll likely face rejections for mortgages, auto loans, and standard credit cards. Even services that check credit, like apartment rentals or cell phone contracts, may be out of reach or require a substantial security deposit. While this position presents considerable hurdles, it's important to understand that credit scores are not permanent and can change over time.
Who Has a 340 Credit Score?
While age isn't a direct factor in credit score calculations, there is a clear trend of scores improving over time as consumers build a longer financial history. According to 2023 Experian data, the average FICO score breaks down by generation 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
- Silent Generation (ages 78+): 760
Credit Cards With a 340 Credit Score
A credit score of 340 is considered very poor, placing you in the highest-risk category for lenders. Consequently, obtaining approval for most traditional, unsecured credit cards will be extremely challenging, as issuers may view your credit history as a significant liability. Your options will likely be restricted to secured credit cards or specific subprime cards designed for rebuilding credit, which often come with higher fees and interest rates.
Kudos can help you navigate this difficult landscape with its personalized recommendation tools, which analyze your financial preferences to find suitable options from a database of nearly 3,000 cards. Features like the Explore Tool use preference matching to align cards with your needs, while the Dream Wallet provides insights into how a new card might impact your credit score.
Auto Loans and a 340 Credit Score
A 340 credit score places you in the deep subprime category, making it very challenging to secure an auto loan from most lenders. If you are approved, you can expect to face some of the highest interest rates on the market.
To put that into perspective, here is a breakdown of average auto loan rates by credit score for 2025:
- 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 340 Credit Score
A 340 credit score is highly unlikely to qualify for any mainstream mortgage. According to mortgage requirement data, government-backed FHA loans—often the most accessible for low-credit borrowers—require a minimum score of 500. While specialty lenders may serve sub-580 borrowers, a score as low as 340 is generally considered too risky for approval. Your best path forward would be to focus on improving your credit before applying for a home loan.
In the rare case a lender did offer a loan, the terms would be very unfavorable. A low score leads to significantly higher interest rates, substantially increasing the total cost of the loan. Lenders would also impose stricter terms, such as requiring a larger down payment, charging higher fees, and limiting the amount you could borrow. This would severely restrict your purchasing power and overall home-buying options.
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 340 Credit Score
Don't be discouraged by a 340 credit score; improving it is entirely possible through consistent, positive financial behaviors. There are several proven methods to boost your creditworthiness, and you can see meaningful changes with dedicated effort.
- Monitor your credit reports. With a score in the 300s, it's crucial to check for errors that could be dragging you down. Disputing and removing inaccuracies is one of the quickest ways to potentially raise your score.
- Establish automatic bill payments. Payment history is the most significant factor in your score, and late payments are a primary reason for a low number. Setting up automatic payments ensures you build a positive track record and demonstrate reliability.
- Apply for a secured credit card. A 340 score makes it difficult to get approved for traditional credit, but a secured card is designed for rebuilding. Making a small deposit allows you to establish a positive payment history and start improving your credit file.
- Address collection accounts. Unpaid debts in collections severely damage your credit, and they are common with very low scores. Negotiating a settlement or payment plan can resolve the debt and reduce its negative impact over time.
The free Kudos browser extension can help you manage your cards and monitor your progress as you work to improve your score.
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