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389 Credit score: What You Need to Know in 2025
July 1, 2025
TL;DR
A 389 credit score offers a clear starting point for building a stronger financial foundation, though it presents immediate borrowing challenges. This score falls squarely within the "Poor" FICO credit score range, which covers scores from 300 to 579.
What Does a 389 Credit Score Mean?
A credit score of 389 falls squarely into the “poor” range on the FICO Score scale, which spans from 300 to 850. This number acts as a summary of your credit history, and a score this low indicates to potential lenders a very high level of risk. Financially, it suggests a past that may include significant credit missteps, such as late payments, defaults, or accounts in collections, making lenders wary.
Consequently, a 389 credit score can severely limit your financial options. You will likely face denials for new credit cards, auto loans, and mortgages. In the rare case of an approval, the terms offered will probably be unfavorable, featuring steep interest rates and strict conditions. While this presents considerable challenges, a credit score is a dynamic number, not a permanent label, reflecting one's financial standing at a single point in time.
Who Has a 389 Credit Score?
While age isn't a direct factor in credit score calculations, there is a strong correlation between age and the average score. According to 2023 Experian data, scores generally improve with each successive 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 389 Credit Score
A credit score of 389 falls into the "very poor" range, which can significantly hinder your ability to obtain a credit card. Most lenders view such a score as a high risk, making them hesitant to approve applications for traditional, unsecured credit cards. Consequently, your options will likely be restricted to secured credit cards or subprime cards that come with higher interest rates and lower credit limits.
Kudos offers AI-powered tools like the Dream Wallet, which analyzes your spending habits to provide personalized card recommendations from its database of nearly 3,000 options. The platform also provides insights into how applying for a new card could impact your credit score, helping you make a more informed decision for your financial situation.
Auto Loans and a 389 Credit Score
A 389 credit score places you in the deep subprime category, which can make securing an auto loan challenging. While approval is still possible, you will likely face significantly higher interest rates and less favorable loan terms.
According to an analysis of 2025 auto financing, average interest rates break down as follows for new and used vehicles:
- 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 389 Credit Score
A 389 credit score is considered extremely poor, making it virtually impossible to qualify for a traditional mortgage. Government-backed options like FHA loans require a minimum score of 500. While some specialty subprime lenders might consider very low scores, these options are rare and often come with unfavorable terms. Alternative paths like owner financing may exist but carry significant risks.
Should you find a lender, a 389 score would lead to severe consequences. You would face substantially higher interest rates, be required to make a much larger down payment, and pay higher fees. Lenders would also cap the loan amount and subject your application to a rigorous manual underwriting process, with a high probability of denial.
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's primarily based on a handful of key financial habits. The most common factors 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.
- Having a healthy mix of credit types, such as credit cards and installment loans, can positively impact your score.
- Recent credit inquiries and newly opened accounts can temporarily lower your score.
How to Improve Your 389 Credit Score
While a 389 credit score presents significant financial hurdles, it is entirely possible to improve it with dedication and the right strategy. With consistent, positive financial habits, most people can see meaningful changes to their score in just a few months.
- Apply for a secured credit card. This type of card is designed for those with damaged or limited credit, as it requires a security deposit that acts as your credit limit. Making small purchases and paying the bill on time every month establishes a positive payment history, a critical factor in rebuilding your score.
- Become an authorized user. If you have a trusted friend or family member with a strong credit history, ask to become an authorized user on one of their accounts. This allows their good payment history and low credit utilization to be reflected on your credit report, which can provide a helpful boost.
- Consider a credit-builder loan. These small loans are specifically designed to help individuals establish or rebuild credit. The loan amount is held in a savings account while you make fixed payments, which are reported to the credit bureaus to build a positive payment history.
- Address collection accounts. A score of 389 likely indicates there are accounts in collections, which severely damage your credit. Contact the collection agencies to verify the debt and negotiate a settlement or payment plan to resolve these negative marks on your report.
As you work to rebuild your financial health, a platform like Kudos can help you manage your cards and monitor your progress.
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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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