Who Has a 623 Credit Score?

While age isn't a direct factor in calculating your credit score, scores tend to rise as people get older. This is because older individuals have had more time to build a positive payment history and a longer credit history. According to 2023 Experian data, here's how average credit scores break down 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
• The Silent Generation (ages 78+): 760

Credit Cards With a 623 Credit Score

A credit score of 623 places you in the "fair" credit range, which can be a mixed bag when applying for new credit cards. While you'll likely find some lenders willing to approve your application, your options will be more limited than for those with good or excellent credit. You may have to look at cards specifically designed for building credit or secured cards, and you should be prepared for potentially higher interest rates and lower credit limits.

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Kudos offers AI-powered tools like Dream Wallet that analyze your unique spending habits and financial preferences to provide personalized credit card recommendations from a database of nearly 3,000 cards. These tools help you make an informed decision by offering insights into how a new card might impact your credit score and whether its benefits and fees align with your financial situation.

Auto Loans and a 623 Credit Score

A 623 credit score places you in the "non-prime" borrower category, so while you can likely get an auto loan, you should expect to pay a higher interest rate. Lenders view this score as a greater risk, which, according to recent industry analysis, results in less favorable financing terms.

• 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 623 Credit Score

A 623 credit score puts you in a position to qualify for several types of home loans. You'll likely meet the minimum 620 score for a conventional loan and easily clear the bar for government-backed options. These include FHA, VA, and USDA loans, which have more flexible credit score requirements. While jumbo loans are generally out of reach, you have a solid foundation to start shopping for a mortgage.

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However, your score will directly impact your loan terms. Lenders will offer you a higher interest rate; borrowers in the 620-639 range recently saw average rates around 7.8%, compared to 6.2% for top-tier applicants. For conventional loans, you can also expect to pay more for Private Mortgage Insurance (PMI) if your down payment is less than 20%.

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 623 Credit Score

Your credit score plays a crucial role in your financial life, but it isn't set in stone; there are always proven methods to improve your creditworthiness. With consistent effort, you can build a healthier financial profile and boost your score.

• Monitor your credit reports. Regularly checking your reports from all three bureaus helps you spot and dispute inaccuracies that could be unfairly dragging down your score. This also allows you to track your progress as you work to build better credit habits.
• Set up automatic bill payments. Your payment history is the single most important factor in your credit score, so ensuring every bill is paid on time is critical. Automating payments prevents missed or late payments, which are common reasons for a score in the 623 range.
• Lower your credit utilization ratio. Lenders see high balances as a risk, so aim to keep your credit utilization below 30% of your total available credit. Paying down your balances shows you can manage debt responsibly, which can provide a significant boost to your score.
• Become an authorized user. Piggybacking on the good credit of a trusted friend or family member can add their positive payment history and low utilization to your file. This can be a quick way to add positive data to your credit report and improve your score.

To help you get the most out of your cards while you build your credit, consider using the free Kudos browser extension to maximize your rewards.