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463 Credit score: What You Need to Know in 2025
July 1, 2025
TL;DR
A 463 credit score is an opportunity to build a stronger financial foundation, though it does present some immediate hurdles. According to the FICO model, this score is in the "Poor" category, signaling a clear path for strategic improvement.
What Does a 463 Credit Score Mean?
A credit score of 463 places you in the "poor" credit range, as defined by scoring models like FICO. Lenders view scores in this range (typically 300-579) as a sign of high risk. This can make it difficult to get approved for new credit cards or loans. If you are approved, you'll likely face steep interest rates and unfavorable terms, making borrowing much more expensive.
While this score reflects past financial challenges, it doesn't have to define your future. It serves as a baseline from which you can begin to rebuild. Understanding the factors behind your score is the first step toward improving your credit and unlocking better financial opportunities down the road.
Who Has a 463 Credit Score?
While a 463 credit score is significantly below the average for any demographic, credit scores generally improve with age. According to 2023 Experian data, the average credit scores by generation are 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 463 Credit Score
A credit score of 463 falls into the "very poor" range, which can significantly hinder your ability to obtain a credit card. Most lenders view this score as a high risk, meaning you'll likely face rejections for traditional unsecured credit cards. Your options will probably be limited to secured cards that require a cash deposit or certain unsecured cards specifically designed for bad credit, which often come with high fees and interest rates.
Kudos offers AI-powered tools like the Explore Tool and Dream Wallet, which use personalized quizzes or your real-time spending data to match you with the best options from a database of nearly 3,000 cards. These tools can help you find cards designed for building credit responsibly and provide insights on how a new card might impact your credit score, making it easier to choose one that fits your financial situation.
Auto Loans and a 463 Credit Score
A 463 credit score places you in the deep subprime category, which can make securing an auto loan difficult, though not impossible. Lenders will view you as a high-risk borrower, meaning you will likely face some of the highest interest rates available.
According to a 2025 guide, average auto loan rates vary significantly by credit score:
- 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 463 Credit Score
Securing a mortgage with a 463 credit score is exceptionally difficult. Mainstream lenders, including those offering government-backed loans, have minimum requirements that a 463 score does not meet. For instance, FHA loans—the most lenient option—require a minimum score of 500 for consideration, and that's with a 10% down payment. According to mortgage requirements, very few loans are approved for borrowers with scores below 600.
If you were to find a specialty lender, the loan terms would be significantly impacted by the low score. Expect to face much higher interest rates, additional fees, and a large down payment requirement. Lenders would also likely cap the total loan amount and put your finances through a rigorous manual underwriting process to scrutinize your income, debt, and overall financial stability.
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 463 Credit Score
Don't be discouraged by a 463 credit score; with consistent effort and the right strategy, it's entirely possible to rebuild your financial standing. Many people see meaningful improvements within three to six months by following proven methods for building credit.
- Make on-time payments. Your payment history is the single most important factor in your score, so setting up automatic payments is a critical first step. For a score in the 400s, establishing a perfect record of on-time payments is the foundation for rebuilding your credit profile.
- Lower your credit utilization. High balances on credit cards signal risk to lenders, so aim to use less than 30% of your available credit. Paying down your balances shows you can manage debt responsibly, which can lead to a quick improvement in your score.
- Monitor your credit reports. Regularly check your reports from Experian, TransUnion, and Equifax for inaccuracies, as an error could be unfairly damaging your score. Disputing and removing incorrect negative items can provide a significant and immediate boost.
- Apply for a secured credit card. A 463 score makes it difficult to qualify for traditional credit, but a secured card is an excellent tool for rebuilding. It requires a small deposit and your payments are reported to the credit bureaus, allowing you to establish a positive history.
Using a tool like Kudos can help you manage your cards and make smarter spending decisions on your journey to a better score.
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