Who Has a 498 Credit Score?

Credit scores often correlate with age, typically increasing as individuals have more time to establish a financial track record. Data from Experian shows a clear upward trend across generations. Here is the average FICO score breakdown by age group for 2023:

• 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 498 Credit Score

A 498 credit score places you in the "poor" credit range, signaling to lenders that you may be a high-risk borrower. Consequently, you'll likely find it difficult to get approved for most traditional credit cards, especially those with rewards or low interest rates. Your options will primarily be limited to secured credit cards that require a cash deposit or certain unsecured cards designed for building credit, which often come with high fees and interest rates.

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Kudos offers AI-powered tools like the Explore Tool and Dream Wallet to provide personalized credit card recommendations based on your unique financial situation and preferences. These tools can help you find cards designed for building credit responsibly and provide insights into how applying might impact your score, empowering you to make a more informed decision.

Auto Loans and a 498 Credit Score

A 498 credit score places you in the deep subprime category, which can make securing an auto loan more difficult. While approval is still possible, you will likely face much higher interest rates, as detailed in this 2025 analysis.

• 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 498 Credit Score

Securing a mortgage with a 498 credit score is exceptionally difficult, as it falls below the minimum threshold for nearly all mainstream loan programs. According to current mortgage requirements, even FHA loans—one of the more lenient options—mandate a score of at least 500. While some specialty subprime lenders might work with lower scores, these are rare and come with significant caveats. Conventional, VA, and USDA loans are generally not available to borrowers in this credit range.

If you do find a rare specialty loan, a 498 score will lead to unfavorable terms. Lenders will charge much higher interest rates to compensate for the risk. You will also face a substantial down payment requirement, likely 10% or more, along with higher fees and mortgage insurance premiums. Your application would undergo strict manual underwriting, where lenders scrutinize your income, employment history, and past credit issues much more closely.

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 history of making payments on time is the most significant factor.
• How much of your available credit you're currently using, known as your credit utilization ratio, plays a major role.
• The age of your credit accounts, including the average age and the age of your oldest account, is also considered.
• Lenders like to see that you can responsibly manage different types of credit, such as credit cards and loans.
• Opening several new credit accounts in a short period can be seen as a risk and may temporarily lower your score.

How to Improve Your 498 Credit Score

A low credit score isn't a permanent mark on your financial record; it is entirely possible to improve your creditworthiness with a few proven methods. For a score in the poor range, focusing on foundational habits is the key to building a healthier credit profile.

• Establish Automatic Bill Payments: This ensures you never miss a payment deadline, which is the most significant factor in your credit score. For a low score, creating a flawless record of on-time payments is the most critical first step toward recovery.
• Apply for a Secured Credit Card: A secured card requires a cash deposit and is designed for individuals with damaged or limited credit. Your payments are reported to the major credit bureaus, allowing you to build a positive history from the ground up.
• Monitor Your Credit Reports Regularly: Checking your reports allows you to identify and dispute inaccuracies that could be unfairly lowering your score. With a poor score, even minor errors can have an outsized negative impact, and correcting them can provide a quick boost.
• Reduce Your Credit Utilization Ratio: Lenders want to see that you aren't maxing out your credit, so aim to use less than 30% of your available limit. Paying down balances is essential, as high utilization signals financial risk and heavily suppresses a low credit score.

The free Kudos browser extension can act as a financial companion to help you manage your cards and monitor your score as you improve it.