638 Credit score: What You Need to Know in 2025

Who Has a 638 Credit Score?

A 638 credit score is below the average for every age demographic. According to 2023 Experian data, average credit scores tend to increase with age as consumers build a longer financial history. Here is the breakdown 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 638 Credit Score

A credit score of 638 places you in the "fair" credit range, which is a common starting point for many people building their credit history. While this score can open the door to several credit card options, you may not qualify for premium cards that offer the best rewards and lowest interest rates. Lenders might approve you with less favorable terms, such as a higher APR or a lower credit limit, as they view your score as carrying a bit more risk.

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Navigating the vast credit card market is easier with services like Kudos, which offers an Explore Tool to help you find the right match from a database of nearly 3,000 cards. The tool uses a 'preference matching' feature to recommend cards based on your stated goals, such as building credit or finding a low interest rate, helping you make a choice that fits your current financial standing.

Auto Loans and a 638 Credit Score

A 638 credit score places you in the non-prime category, meaning you can likely secure an auto loan but should anticipate less favorable terms. Lenders will typically offer you higher interest rates than borrowers with stronger credit histories.

According to an analysis of Experian data, here are the average auto loan rates broken down by credit score:

• 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 638 Credit Score

With a 638 credit score, you're in a position to qualify for several types of home loans. This score meets the typical minimum requirements for conventional loans, which often start at 620. You also clear the hurdles for government-backed mortgages, including FHA, VA, and USDA loans. The only major category you likely won't qualify for is a jumbo loan, as those are generally reserved for borrowers with scores of 700 or higher.

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While you can get a loan, your 638 score will impact its terms. You can expect to be offered higher interest rates compared to borrowers with excellent credit. For a conventional loan with less than 20% down, you'll also face higher private mortgage insurance (PMI) premiums. Lenders may also apply more scrutiny during the underwriting process, though you are eligible for most mainstream mortgage products.

What's in a Credit Score?

While the exact formulas used by credit bureaus are proprietary, your score is generally determined by a handful of common factors.

• Your payment history tracks whether you've paid past credit accounts on time.
• Credit utilization is the percentage of your available credit that you are currently using.
• The length of your credit history considers the age of your oldest account, newest account, and the average age of all your accounts.
• Credit mix refers to the variety of credit products you have, such as credit cards, retail accounts, and loans.
• New credit inquiries note how often you apply for and open new accounts.

How to Improve Your 638 Credit Score

Your credit score plays a crucial role in your financial life, but no matter your starting point, it is always possible to improve it. With consistent effort and the right strategy, you can use proven methods to boost your creditworthiness and build a healthier financial profile.

• Monitor your credit reports. Errors on your credit report could be unfairly dragging down your 638 score, so it's critical to check for them. Regularly reviewing your reports allows you to spot and dispute inaccuracies, which can provide a significant boost once corrected.
• Reduce your credit utilization ratio. This ratio of your balance to your credit limit is a major factor in your score, and a high one signals risk to lenders. Paying down your balances to below 30% is one of the fastest ways to see a meaningful improvement from a fair credit score.
• Become an authorized user. If you have a trusted family member with a long history of on-time payments, being added as an authorized user on their account can help. Their positive credit habits will be reflected on your report, helping to build your own credit history and improve your score.
• Apply for a secured credit card. A 638 score might make it difficult to get approved for traditional cards, but a secured card is an excellent tool for building credit. Because you provide a cash deposit as collateral, it's easier to get approved, and your responsible payment history gets reported to the credit bureaus.

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