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326 Credit score: What You Need to Know in 2025
July 1, 2025
TL;DR
A 326 credit score offers a clear opportunity for financial growth and improvement. According to the FICO model, this score is categorized as "Poor," signaling a foundational stage from which you can build a more robust credit history.
What Does a 326 Credit Score Mean?
A credit score of 326 is considered "poor" on the FICO scale, which ranges from 300 to 850. This score suggests a history of significant financial difficulties, such as late payments or defaults. Financially, this presents major hurdles. Lenders will likely see you as a high-risk borrower, making it tough to qualify for new credit cards, mortgages, or auto loans. Any approved credit will probably come with very high interest rates and unfavorable terms.
While this score is challenging, it's not a permanent state. It represents a starting point from which you can begin building a stronger credit history. Recognizing your current standing is the crucial first step toward making positive changes. Over time, it is possible to improve your financial outlook and work toward a healthier score.
Who Has a 326 Credit Score?
While an individual's financial habits are the primary driver of their credit score, data on the average credit score by age reveals a clear trend of scores improving over time. Based on 2023 data from Experian, here is the generational breakdown:
- Ages 18-26 (Gen Z): 680
- Ages 27-42 (Millennials): 690
- Ages 43-58 (Gen X): 709
- Ages 59-77 (Baby Boomers): 745
- Ages 78+ (Silent Generation): 760
Credit Cards With a 326 Credit Score
A credit score of 326 is considered very poor, placing you in the highest-risk category for most lenders. Consequently, you'll find it extremely challenging to get approved for traditional, unsecured credit cards, as most issuers will view your application unfavorably. Your options will likely be restricted to products specifically designed for building credit, such as secured credit cards that require a cash deposit as collateral.
Kudos offers an AI-powered Explore Tool that acts as a personalized matchmaker to help you find the right card for your financial situation. The tool starts with a quiz to understand your preferences—such as low interest rates or building credit—and then sifts through nearly 3,000 cards to find the best options for you.
Auto Loans and a 326 Credit Score
A 326 credit score places you in the deep subprime category, which makes getting an auto loan challenging but not impossible. Lenders view this score as high-risk, resulting in significantly higher interest rates and less favorable loan terms compared to borrowers with better credit, according to 2025 auto loan analysis.
- 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 326 Credit Score
With a 326 credit score, qualifying for a traditional mortgage is unfortunately out of reach. Most conventional lenders look for a minimum score of 620. Even government-backed options like FHA loans require a score of at least 500 with a 10% down payment, according to a Kudos mortgage guide. Your score falls well below the minimum for any standard home loan.
This score effectively closes the door to favorable loan terms. Lenders view a low score as high risk, translating to higher interest rates and fees for those who qualify at higher score ranges. For perspective, borrowers with scores in the low 600s faced interest rates around 7.8% in mid-2024. Any non-standard financing you might find would come with even more prohibitive costs.
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 326 Credit Score
Having a 326 credit score can feel discouraging, but it is entirely possible to rebuild your financial standing. With consistent, positive behavior and by following some proven methods, you can see meaningful improvements in just a few months.
- Monitor your credit reports. Regularly check your reports for errors, as inaccuracies or signs of identity theft could be unfairly dragging down your score. Disputing and removing incorrect negative items is one of the fastest ways to see a significant score increase.
- Set up automatic bill payments. Your payment history is the single most important factor in your credit score, so this is a critical first step. Establishing a track record of consistent, on-time payments is foundational to proving your creditworthiness and rebuilding from a very low score.
- Apply for a secured credit card. A secured card requires a small security deposit and reports your payments to the credit bureaus, making it a great tool for those with poor credit. This allows you to build a positive payment history from the ground up, which is essential when your score is in the 'very poor' range.
- Become an authorized user. Ask a trusted friend or family member with a strong credit history to add you to one of their accounts. Their positive payment history and low credit utilization can be added to your credit file, providing a potential boost to your score.
Kudos offers tools and personalized recommendations to help you manage your credit and improve your score.
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Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
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