Who Has a 658 Credit Score?

Credit scores tend to improve with age. Based on 2023 Experian data, here is the average FICO score for each 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 658 Credit Score

With a credit score of 658, you're generally considered to be in the "fair" credit range, which puts you in a decent position for credit card approval. While you might not qualify for the most premium cards with top-tier rewards and benefits, you'll likely have several solid options available to you. However, be prepared for potentially higher interest rates and lower credit limits than what's offered to applicants with good or excellent credit.

‍

Kudos offers AI-powered tools like the Explore Tool, which uses a quiz to understand your financial goals and recommend suitable cards from a database of nearly 3,000 options. Its Dream Wallet feature can also analyze your spending habits to provide hyper-personalized recommendations and insights into how a new card might affect your credit score.

Auto Loans and a 658 Credit Score

A 658 credit score places you in the non-prime borrower category, meaning you can generally get an auto loan but will face higher interest rates than applicants with stronger credit. Lenders see this score as having a moderate level of risk, so you may not qualify for the most competitive loan terms available.

Based on recent data, here are the average car loan interest rates 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 658 Credit Score

A 658 credit score puts you in the running for several types of home loans. Based on current credit score requirements, you can likely qualify for conventional, FHA, VA, and USDA loans. While this score is above the minimum threshold for these mainstream programs, it is considered 'fair,' not 'good' or 'excellent,' which will affect your loan terms.

Because your score is not in the top tier, you will likely face higher interest rates and more expensive private mortgage insurance (PMI) premiums. Lenders may also apply stricter underwriting standards, scrutinizing your application more closely to assess your overall financial stability before granting approval.

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 658 Credit Score

No matter your current credit score, it's always possible to improve your financial standing with consistent effort. Taking the right steps can help you build a healthier credit profile and unlock better financial opportunities.

• Monitoring your credit reports allows you to check for errors or inaccuracies that could be holding your score down. Disputing incorrect information is a direct way to fix potential issues and can provide a quick boost to a 658 score.
• Reducing your credit utilization by keeping balances below 30% of your limit is crucial, as high utilization negatively impacts your score. Paying down balances is one of the fastest ways for someone with a 658 score to see a meaningful improvement.
• Establishing automatic bill payments ensures you never miss a due date, which is critical since payment history is the most important factor in your score. A consistent record of on-time payments is fundamental to moving your score up from the fair range.
• Becoming an authorized user on the account of someone with good credit can add their positive payment history to your report. This can significantly help improve a 658 score by leveraging their established creditworthiness.

For more proven methods and tools to help you on your journey, check out the expert guide from Kudos.