Who Has a 518 Credit Score?

While age isn't a direct factor in calculating your credit score, there is a clear trend showing that scores tend to improve over time. According to 2023 data from Experian, the average credit scores by generation break down as follows:

• 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 518 Credit Score

A credit score of 518 falls into the "poor" range, which can significantly hinder your ability to qualify for most traditional credit cards. Lenders generally view applicants with scores in this range as high-risk, meaning you'll likely face rejections from major card issuers for their more desirable unsecured cards. Your options will probably be limited to products specifically designed for building credit, such as secured credit cards that require a cash deposit or certain unsecured cards with high annual fees and interest rates.

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Kudos can help you find the best card for your financial situation with its AI-powered Explore Tool, which uses a personalization quiz to understand your needs, whether you're looking for low interest rates or a card to build credit. The tool provides unbiased, data-driven recommendations from a database of nearly 3,000 cards, helping you compare options and make an informed choice.

Auto Loans and a 518 Credit Score

A 518 credit score places you in the subprime category, which lenders consider a significant risk. Consequently, you will likely face much higher interest rates and may have more difficulty getting approved for an auto loan compared to borrowers with stronger credit profiles.

According to Experian's Q2 2025 data, average auto loan rates for new and used vehicles break down as follows:

• 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 518 Credit Score

While a 518 credit score makes buying a home challenging, it doesn't entirely close the door. Your primary option will likely be an FHA loan, which has credit score requirements that allow for scores as low as 500, provided you can make a 10% down payment. Other government-backed loans are technically possible, but most lenders impose their own minimums, typically starting at 580 or higher, making them difficult to secure.

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A 518 score will significantly impact your loan terms. You can expect higher interest rates and additional costs, like the FHA's mandatory mortgage insurance. Lenders will also scrutinize your finances more closely through manual underwriting and may limit the total amount you can borrow, leading to higher monthly payments and more upfront costs than for borrowers with better credit.

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 518 Credit Score

While a 518 credit score can feel discouraging, it is always possible to improve your financial health with consistent effort and the right strategies. According to one expert guide, most people can see meaningful changes within three to six months of positive financial behavior.

• Monitor your credit reports regularly. A 518 score could be dragged down by errors or inaccuracies, and identifying and disputing these items can provide a significant boost. This also allows you to track your progress and ensure no fraudulent activity is harming your score.
• Establish automatic bill payments. Payment history is the single most important factor for your credit score, so making on-time payments is the most critical step you can take. Automating payments prevents missed deadlines that can severely damage an already low score.
• Apply for a secured credit card. A secured card requires a small cash deposit as collateral, making it much easier to get approved for with a score of 518. Using it for small purchases and paying the balance in full each month demonstrates responsible credit management to the credit bureaus.
• Become an authorized user. Being added to a credit card account of a trusted person with a good credit history can add their positive payment history and low credit utilization to your file. This can be particularly effective if you have a limited credit history of your own.

To help you use your cards more strategically and maximize rewards as you build your credit, consider using the AI-powered browser extension from Kudos.