Who Has a 612 Credit Score?

• Generation Z (ages 18-26): The average FICO score for this group is 680.
• Millennials (ages 27-42): This generation has an average credit score of 690.
• Generation X (ages 43-58): With more time to build credit, Gen X holds an average score of 709.
• Baby Boomers (ages 59-77): The average credit score for Baby Boomers is 745.
• The Silent Generation (ages 78+): This group has the highest average score at 760, which FICO considers "very good."

Credit Cards With a 612 Credit Score

A credit score of 612 falls into the "fair" credit range, which can present some challenges when applying for a new credit card. While you may still qualify for certain cards, you'll likely face higher interest rates and lower credit limits than applicants with stronger credit profiles. Lenders often view scores in this range as higher risk, so your options might be more concentrated on unsecured cards for fair credit or secured cards that require a security deposit.

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Kudos offers AI-powered tools like the Explore Tool and Dream Wallet, which provide personalized credit card recommendations based on your financial goals and spending habits. These tools help you compare options and offer insights into how a new card might impact your credit score, ensuring you find a suitable match for your current financial standing.

Auto Loans and a 612 Credit Score

With a 612 credit score, you fall into the non-prime borrower category, which can make getting an auto loan more challenging. While approval is still possible, you should anticipate higher interest rates compared to applicants with better credit.

Based on automotive finance data, here are the average rates for new and used cars across different credit tiers:

• 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 612 Credit Score

A 612 credit score will limit your mortgage options, but homeownership isn't out of reach. You likely won't qualify for a conventional loan, which typically requires a 620 score. Your best bet is an FHA-insured loan, which accepts scores of 580 with a 3.5% down payment. VA and USDA loans are also potential, but less certain, options as most lenders prefer scores above 620.

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Your score will directly impact your loan's cost. You can expect a higher interest rate and steeper mortgage insurance premiums on an FHA loan. This translates to a higher monthly payment and tens of thousands more paid over the life of the loan. Lenders will also scrutinize your finances more closely through stricter underwriting, reviewing your income, debts, and savings with extra care.

What's in a Credit Score?

Figuring out what goes into your credit score can feel like trying to solve a complex puzzle, but the number is generally derived from a few key factors in your financial history.

• Your payment history is the most significant factor, reflecting whether you pay your bills on time.
• Credit utilization measures how much of your available credit you are currently using.
• The length of your credit history considers the age of your oldest and newest accounts, as well as the average age of all your accounts.
• Your credit mix looks at the different types of credit you have, such as credit cards, mortgages, and installment loans.
• New credit inquiries and recently opened accounts can also temporarily impact your score.

How to Improve Your 612 Credit Score

Your credit score plays a crucial role in your financial life, but the good news is that it is always possible to improve it. With consistent effort and the right strategies, you can boost your 612 score and unlock better financial opportunities.

• Monitor your credit reports regularly. A 612 score could be the result of errors or even identity theft, and disputing these inaccuracies can provide a significant boost.
• Establish automatic bill payments. Since payment history is the most important factor in your score, this simple step prevents the late payments that may be holding your score down.
• Reduce your credit utilization ratio. High balances relative to your credit limits heavily impact your score, so paying them down to below 30% is one of the fastest ways to see improvement.
• Become an authorized user on a trusted person's account. This allows their positive payment history and low credit utilization to be added to your report, which can help build a stronger credit profile.

To help you maximize rewards while you build your credit, the free Kudos browser extension can recommend the best card for every purchase.