Who Has a 406 Credit Score?

• 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

According to a 2023 analysis of Experian data, there is a clear upward trend in average credit scores as people age, largely because older consumers have had more time to build a positive payment record and a longer credit history.

Credit Cards With a 406 Credit Score

A credit score of 406 falls into the 'very poor' category, signaling to lenders that you are a high-risk borrower. Consequently, your chances of being approved for most traditional credit cards are quite low. Your options will likely be limited to secured cards that require a cash deposit or certain unsecured cards designed for bad credit, which typically come with high fees and interest rates.

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Kudos offers AI-powered tools that provide personalized credit card recommendations based on your unique financial situation, spending habits, and preferences. These tools match you with suitable options from a database of nearly 3,000 cards and offer insights into how a new card could impact your credit score.

Auto Loans and a 406 Credit Score

A 406 credit score places you in the deep subprime category, which can make securing an auto loan challenging. While approval is still possible, you should expect to face significantly higher interest rates and less favorable loan terms according to 2025 auto loan data.

• 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 406 Credit Score

A 406 credit score falls significantly below the minimum requirements for nearly all mortgage types. Most lenders require scores of at least 620 for conventional loans, while government-backed FHA loans have a floor of 500. With a score in the low 400s, qualifying for a traditional home loan is highly unlikely. Your options would be limited to specialty non-prime lenders, which are rare and come with very strict conditions.

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Even if you found a willing lender, a 406 score would severely impact your loan terms. You would face much higher interest rates and fees, increasing the total cost of your home by tens of thousands. Lenders would also likely require a larger down payment, cap the amount you can borrow, and put your entire financial history under a microscope through manual underwriting to compensate for the 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'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 406 Credit Score

While a 406 credit score can feel discouraging, it is possible to improve it with consistent effort and the right strategy. By following proven methods, most people can see meaningful changes to their score within three to six months.

• Establish automatic bill payments. Payment history is the most significant factor in your credit score, so ensuring every bill is paid on time is crucial. This demonstrates reliability to lenders and is the foundational step to rebuilding a poor credit history.
• Apply for a secured credit card. Designed for those with damaged credit, these cards require a cash deposit as collateral, making them easier to obtain. Using a secured card responsibly and making timely payments helps establish a positive payment history, as activity is reported to the credit bureaus.
• Become an authorized user. You can build credit by being added to the credit card of someone with a strong payment history and low credit utilization. Their good habits can positively impact your score, as long as their account reports to all three credit bureaus.
• Monitor your credit reports. Regularly checking your credit reports helps you identify and dispute inaccuracies that could be unfairly dragging your score down. Catching errors early is a critical step in ensuring your score accurately reflects your financial behavior.

Using a financial tool like Kudos can help you manage your credit cards and monitor your score as you work toward improvement.