Who Has a 630 Credit Score?

While age is not a direct factor in calculating your credit score, there is a strong correlation between the two. Data shows that, on average, credit scores tend to improve as people get older. According to a 2023 analysis of average credit scores, the breakdown by generation is 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 630 Credit Score

A credit score of 630 places you in the "fair" credit range, which can be a mixed bag when applying for a new credit card. While you'll likely find lenders willing to extend you credit, you may not qualify for premium cards with the best rewards and lowest interest rates. Instead, you can expect to be approved for cards with higher APRs and lower credit limits, and some may even require a security deposit.

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Kudos offers AI-powered tools that simplify the search by matching your unique financial profile to the best options from a database of nearly 3,000 cards. By analyzing your spending habits or stated preferences, these tools provide personalized recommendations and insights into how a new card could impact your credit.

Auto Loans and a 630 Credit Score

With a 630 credit score, you fall into the non-prime borrower category, which means you can likely get approved for an auto loan but should expect higher interest rates. These less favorable terms will make your loan more expensive over time compared to what borrowers with better credit scores receive.

According to a recent analysis of auto loan interest rates, here is how the average rates break down by credit score bracket:

• 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 630 Credit Score

Yes, a 630 credit score is high enough to qualify for several types of home loans. According to mortgage credit requirements, you will likely be eligible for FHA, VA, and USDA loans. You may also qualify for a conventional loan, as many lenders set their minimum at 620. However, some conventional lenders prefer scores of 640 or higher, and you will not qualify for a jumbo loan, which typically requires a score of 700 or more.

While you can get a mortgage, a 630 score will impact your loan terms. You can expect a higher interest rate; borrowers in the 620-639 FICO range saw average rates around 7.8% in mid-2024, compared to 6.2% for top-tier borrowers. Lenders may also scrutinize your application more closely, and you could face higher private mortgage insurance (PMI) premiums on a conventional loan.

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 630 Credit Score

Improving your credit score is always possible with consistent, positive financial habits. A 630 score is a solid starting point, and taking the right steps can help you move into a better credit tier.

• Monitor your credit reports. This allows you to spot and dispute any inaccuracies or signs of identity theft that could be unfairly dragging your score down.
• Establish automatic bill payments. Since payment history is the most significant factor in your score, this ensures you build a positive record and avoid late payments that are common with fair credit scores.
• Reduce your credit utilization ratio. Keeping your balances low, ideally under 30% of your limit, is crucial as utilization is the second-largest component of your score.
• Become an authorized user. This adds the positive payment history and low utilization from another person's account to your credit file, which can help build a more robust profile.

The Kudos browser extension can help you find the right credit-building cards and maximize your rewards along the way.