Who Has a 402 Credit Score?

While a 402 credit score is significantly below the national average for any demographic, it's helpful to understand where typical scores land. According to average credit scores by generation, there is a clear trend of scores improving with age. Based on 2023 Experian data, here is the breakdown:

• 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 402 Credit Score

A credit score of 402 falls into the "very poor" range, which can significantly hinder your ability to obtain a credit card. Lenders view this score as a high-risk indicator, making them hesitant to approve applications for traditional, unsecured credit cards. Consequently, your options will likely be restricted to secured credit cards or subprime cards that come with higher interest rates and lower credit limits.

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Kudos offers AI-powered tools that analyze your spending habits to provide personalized credit card recommendations. The platform also provides insights into how a new card might impact your credit score, helping you make a more informed choice for your financial situation.

Auto Loans and a 402 Credit Score

A 402 credit score places you in the deep subprime category, which can make securing an auto loan challenging. While approval may still be possible, you can expect to face significantly higher interest rates than borrowers with stronger credit histories.
According to Q2 2025 data, here are the average auto loan interest rates for each credit score bracket:

• 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 402 Credit Score

With a 402 credit score, qualifying for a traditional mortgage is extremely unlikely. Most lenders consider scores below 580 to be poor credit. Even government-backed programs like FHA loans, which are more accessible, have minimum score requirements of 500, and that's only with a 10% down payment. Your score falls significantly below the threshold for nearly all standard mortgage products.

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In the rare event you find a specialized subprime lender willing to consider your application, the impact of your score would be severe. You would face much higher interest rates, a substantial down payment, and a cap on your loan amount. The approval process would also be far more stringent, likely involving manual underwriting where every aspect of your finances is scrutinized.

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 402 Credit Score

Your credit score plays a crucial role in your financial life, but even a very low score can be raised using proven methods. With consistent, positive financial habits, most people can see meaningful changes within three to six months.

• Monitor your credit reports. A low score can be the result of errors or fraudulent activity, and finding and disputing these inaccuracies is one of the fastest ways to see an improvement.
• Establish automatic bill payments. Since payment history is the most significant factor in your score, ensuring every bill is paid on time is fundamental to building a positive track record from the ground up.
• Apply for a secured credit card. This type of card is designed for those with damaged credit, allowing you to build a positive payment history by making a small security deposit as collateral.
• Reduce your credit utilization ratio. Lenders look at how much of your available credit you're using, so paying down balances to below 30% demonstrates responsible debt management.

As you work to rebuild your credit, a tool like the Kudos browser extension can help you manage your cards and spending more effectively.