Who Has a 525 Credit Score?

While age isn't a direct factor in calculating your credit score, there is a strong correlation between age and higher scores. This is largely because older individuals have had more time to build a longer credit history and demonstrate responsible payment behavior. According to 2023 Experian data, here is the breakdown of average FICO scores by generation:

• 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 525 Credit Score

A credit score of 525 falls into the "poor" credit range, which can significantly challenge your ability to get approved for a new credit card. Most lenders view this score as an indicator of high risk, meaning you'll likely face rejections for traditional, unsecured cards with favorable terms. Your options will probably be limited to products designed for building credit, such as secured credit cards or unsecured cards with high annual fees and interest rates.

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Kudos can help you navigate the limited options for your credit score with its AI-powered Explore Tool, which matches you to cards based on your personal preferences and financial goals. This personalized approach sifts through nearly 3,000 options to find the best fit for your situation, including cards designed to help you build credit responsibly.

Auto Loans and a 525 Credit Score

A 525 credit score places you in the subprime borrower category, which means you will likely face significantly higher interest rates on an auto loan. Lenders view this score as higher risk, and 2025 data shows this is reflected directly in the rates offered.

• 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 525 Credit Score

A 525 credit score significantly limits your mortgage options, but it doesn't make homeownership impossible. Your primary path would likely be an FHA loan, which requires a minimum down payment of 10% for borrowers with scores under 580. Other loan types, such as conventional, VA, or USDA loans, are generally unavailable, as most lenders look for minimum credit scores of at least 620.

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Beyond limited eligibility, a 525 score directly impacts your loan terms. You can expect higher interest rates and fees, making your mortgage more expensive over its lifetime. Lenders will also subject your application to stricter underwriting, which involves a more rigorous review of your income, debts, and overall financial stability before approval.

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 525 Credit Score

No matter your starting point, it is always possible to improve your credit score. With consistent effort and the right strategies, you can boost your creditworthiness and build a healthier financial profile.

• Monitor your credit reports. This allows you to identify and dispute any inaccuracies or fraudulent activity that may be dragging your score down, which is especially important for someone with a 525 score.
• Establish automatic bill payments. By ensuring all your payments are made on time, you directly improve your payment history, the most significant factor in your score calculation.
• Reduce your credit utilization ratio. Lowering your balances to below 30% of your limit can quickly boost your score, as high credit card balances are a common reason for low scores.
• Become an authorized user. This allows you to piggyback on someone else's good credit, which can add positive payment history to your report and help offset past negatives.

Using a tool like Kudos can help you find the right cards and maximize rewards as you work to improve your credit.