Who Has a 534 Credit Score?

While a 534 credit score is well below the national average, it's helpful to see how scores typically break down by age. Generally, credit scores tend to improve over time as people build a longer credit history. Here are the average FICO scores by generation, based on 2023 data from Experian:

• 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 534 Credit Score

A credit score of 534 falls into the "poor" credit range, which can significantly impact your ability to qualify for most credit cards. Lenders view this score as high-risk, meaning you'll likely be denied for traditional unsecured cards that offer rewards or low interest rates. Your options will primarily be limited to secured credit cards or certain unsecured cards specifically designed for rebuilding credit, which often come with higher fees and interest rates.

‍

Kudos offers a personalized Explore Tool that can help you navigate the credit card market, even with a challenging score. By asking what you're looking for—such as low interest rates or credit-building features—the tool sifts through thousands of options to provide unbiased recommendations tailored to your financial situation.

Auto Loans and a 534 Credit Score

A credit score of 534 places you in the subprime lending category, which can make securing an auto loan more challenging. While approval is still possible, you should expect to face significantly higher interest rates compared to borrowers with better credit.

• Super-prime (781-850): 5.25% for new cars, 7.13% for used cars
• Prime (661-780): 6.87% for new cars, 9.36% for used cars
• Non-prime (601-660): 9.83% for new cars, 13.92% for used cars
• Subprime (501-600): 13.18% for new cars, 18.86% for used cars
• Deep subprime (300-500): 15.77% for new cars, 21.55% for used cars

Mortgages at a 534 Credit Score

A 534 credit score makes buying a home challenging, but not impossible. Your main option is likely an FHA loan, which is insured by the federal government. According to mortgage loan guidelines, applicants with scores between 500 and 579 must provide a down payment of at least 10%. Most other loan types, like conventional or VA loans, are generally unavailable, as lenders typically require a minimum score of 620.

With a 534 score, you can expect less favorable loan terms. Lenders will charge significantly higher interest rates and fees, increasing your monthly payment and total borrowing cost. Beyond the mandatory 10% down payment for an FHA loan, lenders will also scrutinize your income, employment history, and savings much more closely, often requiring a detailed manual underwriting process to approve your application.

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 534 Credit Score

Improving your credit score is an achievable goal that requires consistent and strategic effort. Whether you're aiming to boost your FICO® score or VantageScore, there are proven methods to improve your creditworthiness and build a healthier financial profile.

• Monitor Your Credit Reports. Regularly check your credit reports from all three major bureaus to spot and dispute any inaccuracies that could be dragging down your score. This also allows you to detect potential identity theft early and track your progress as you work to improve your credit.
• Establish Automatic Bill Payments. Since payment history is the single most important factor in your credit score, setting up automatic payments ensures you never miss a due date. This consistent, on-time payment history is fundamental to moving your score up from 534.
• Reduce Your Credit Utilization Ratio. High credit utilization can significantly lower your score, so aim to keep your balance below 30% of your total credit limit. Paying down balances or even making multiple payments per month shows lenders you aren't over-reliant on credit, which can provide a quick boost.
• Apply for a Secured Credit Card. A secured credit card is an excellent tool for someone with a 534 score, as it's easier to get approved for and allows you to build a positive payment history. By making a small security deposit, you can demonstrate responsible credit use that gets reported to the credit bureaus, helping to rebuild your score over time.

To help you make smarter financial decisions and maximize rewards while you build your credit, the Kudos browser extension can recommend the best card for every purchase.