Who Has a 396 Credit Score?

While age isn't a direct factor in credit score calculations, there is a clear correlation between age and the average credit score. Generally, scores tend to improve as people get older. Based on 2023 Experian data, here is the breakdown of average FICO scores 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 396 Credit Score

A credit score of 396 falls into the "very poor" range, which can significantly hinder your ability to qualify for most credit cards. Lenders view this score as an indicator of high risk, meaning you're likely to face rejections for standard unsecured cards. Your options will generally be limited to products specifically designed for consumers with bad credit, such as secured credit cards that require a cash deposit.

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Kudos can help you find the right credit card through its AI-powered tools that match you with options based on your preferences and spending habits. The platform also provides insights into how a new card could impact your credit score, ensuring the choice aligns with your financial situation.

Auto Loans and a 396 Credit Score

A 396 credit score places you in the deep subprime lending category, which can make securing an auto loan challenging. While lenders may still approve your application, you should expect to face significantly higher interest rates than borrowers with stronger credit profiles.

• Super-prime (781-850): 5.25% for new cars and 7.13% for used cars, based on 2025 Experian data.
• 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 396 Credit Score

A 396 credit score is considered very poor and falls well below the minimum for nearly all mainstream mortgage products. Even government-backed FHA loans, the most accessible option for buyers with poor credit, require a minimum score of 500 with a 10% down payment. While some specialty lenders offer non-prime mortgages, it is extremely unlikely to qualify for any standard home loan with a score this low.

If you were able to find a lender, a low credit score would result in significantly less favorable loan terms. You would face much higher interest rates, costing tens of thousands more over the life of the loan. Lenders would also mandate a larger down payment and likely charge higher fees and mortgage insurance premiums to offset their risk.

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 396 Credit Score

Don't be discouraged by a low credit score; it is absolutely possible to improve your financial standing. With consistent effort and the right strategy, you can use proven methods to build a healthier credit profile over time.

• Monitor your credit reports. A score of 396 could be dragged down by errors or fraudulent accounts, so regularly check your reports to dispute any inaccuracies. This ensures your score is only based on your actual financial history, and correcting mistakes can provide a significant boost.
• Set up automatic bill payments. Payment history is the single most important factor in your score, and a low score often indicates missed payments. Automating payments guarantees you'll never miss a due date, which is a critical first step toward building a positive record.
• Apply for a secured credit card. With a 396 credit score, qualifying for a traditional credit card is difficult, but a secured card can help you build credit from the ground up. Your on-time payments are reported to the credit bureaus, establishing the positive history needed to raise your score.
• Become an authorized user. If you have a trusted friend or family member with a good credit history, ask to be added as an authorized user on their account. This can help improve your score by adding their positive payment history and credit utilization to your own report.

For more help managing your credit and maximizing rewards, consider using the Kudos browser extension.