Who Has a 656 Credit Score?

While age isn't a direct factor in calculating your credit score, there is a clear correlation showing scores tend to improve over a person's lifetime. Based on Experian data from 2023, the average credit scores by generation are:

• 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 656 Credit Score

A credit score of 656 places you in the "fair" credit category, which is a decent starting point for obtaining a new credit card. While you'll likely be approved for a range of cards, you may not have access to the most premium options that offer top-tier rewards and the lowest interest rates. Lenders might also offer you a lower credit limit or a higher APR until you demonstrate a consistent history of responsible use.

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Kudos offers AI-powered tools like the Explore Tool and Dream Wallet that analyze your preferences and spending habits to find the perfect card match from a database of nearly 3,000 options. These tools provide personalized recommendations and insights on how different cards may impact your credit score, helping you make an informed decision that suits your financial situation.

Auto Loans and a 656 Credit Score

With a 656 credit score, you fall into the non-prime borrower category, meaning you can likely secure an auto loan but will not qualify for the most competitive rates. Lenders view this score as carrying a moderate level of risk, which translates to higher interest payments over the life of your loan.

According to a 2025 rate analysis, here are the average interest rates for new and used cars 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 656 Credit Score

With a 656 credit score, you are in a good position to qualify for several types of home loans. This score generally meets the minimum credit score requirements for conventional, FHA, VA, and USDA loans. Most lenders look for scores of 620+ for conventional and VA loans and 580+ for FHA loans, placing you comfortably above the baseline. However, this score is typically not high enough to qualify for most jumbo loans, which often require a score of 700 or more.

While you have options, a 656 score will affect your loan terms. You will not receive the best interest rates, which are reserved for borrowers with excellent credit (740+). This means you'll likely have a higher monthly payment and pay more interest over the life of the loan compared to someone with a top-tier score. For conventional loans, it could also result in higher Private Mortgage Insurance (PMI) premiums, further increasing your costs.

What's in a Credit Score?

Understanding your credit score can feel like trying to solve a complex puzzle, as it's a blend of several key financial habits. The most common factors that determine your score include:

• Your payment history tracks whether you have 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 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 and recently opened accounts can also temporarily impact your score.

How to Improve Your 656 Credit Score

No matter where you're starting from, your credit score isn't set in stone. With consistent effort and the right strategy, it's always possible to improve your financial standing and boost your score using proven methods.

• Monitor your credit reports. Regularly check your reports from all three bureaus to catch and dispute any errors. Correcting inaccuracies is one of the fastest ways to see a score increase, as negative marks you didn't earn could be unfairly dragging down your 656 score.
• Reduce your credit utilization. Aim to keep your credit card balances below 30% of your total available credit. For a 656 score, lowering this ratio demonstrates responsible credit management to lenders and can provide a significant and relatively quick score boost.
• Make on-time payments. Set up automatic payments for all your bills to ensure you never miss a due date. Payment history is the single biggest factor in your credit score, so establishing a flawless record of on-time payments is crucial for moving out of the 'fair' credit range.
• Become an authorized user. Ask a family member with excellent credit to add you as an authorized user on one of their well-established credit cards. This allows their positive payment history and low utilization to appear on your report, which can be a powerful way to build your credit profile.

To make the most of your credit cards while you build your score, let Kudos help you optimize your spending and rewards.