Who Has a 598 Credit Score?

While age isn't a direct factor in calculating your credit score, there is a clear trend of scores improving over time. According to 2023 Experian data, the average FICO score breaks down by generation 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 598 Credit Score

A credit score of 598 places you in the fair credit range, which can make qualifying for the most competitive credit cards a bit of a hurdle. Lenders may view this score as a higher risk, often resulting in less favorable terms like higher interest rates and lower credit limits. While you might not be approved for premium travel or cash-back cards, there are still several options available specifically designed for individuals looking to build or improve their credit history.

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Kudos can help you find the right card with its AI-powered Explore Tool, which uses a quiz to understand your financial preferences for things like rewards or low interest rates. This personalized process matches you with suitable options from a database of nearly 3,000 cards, helping you find a card that fits your financial situation.

Auto Loans and a 598 Credit Score

A 598 credit score places you in the subprime borrower category, which means that while getting an auto loan is possible, it will likely come with higher interest rates. Lenders view this score as higher risk, so the loan terms offered will be less favorable than those for applicants with stronger credit.

According to an automotive finance market report, average rates for new and used cars break down as follows:

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

Mortgages at a 598 Credit Score

A 598 credit score is below the typical 620 minimum for conventional loans, limiting your options primarily to government-backed programs. According to mortgage loan requirements, your best bet is an FHA loan, which accepts scores of 580 or higher with a 3.5% down payment. While some VA and USDA lenders may consider your application on a case-by-case basis, most prefer scores above 620.

With a sub-600 score, expect less favorable loan terms. You will face higher interest rates and fees, including FHA mortgage insurance premiums. Although you may qualify for an FHA loan with just 3.5% down, lenders will likely scrutinize your finances more closely through a stricter underwriting process to offset the perceived 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 the number is generally derived from a few key factors in your financial history.

• Your payment history is the most significant factor, reflecting whether you pay your bills on time.
• Credit utilization measures how much of your available credit you are currently using.
• The length of your credit history considers the age of your oldest and newest accounts, as well as the average age of all your accounts.
• Your credit mix looks at the different types of credit you have, such as credit cards, mortgages, and installment loans.
• New credit inquiries and recently opened accounts can also temporarily impact your score.

How to Improve Your 598 Credit Score

While a 598 credit score can present challenges, it's entirely possible to improve your creditworthiness through consistent, positive financial behaviors. Making a few strategic moves can put you on a clear path toward a healthier financial future.

• Monitor your credit reports. According to expert guidance, you should obtain free reports from all three major bureaus to identify and dispute any inaccuracies that could be dragging down your score. Correcting errors is one of the fastest ways to see a potential improvement.
• Establish automatic bill payments. Your payment history is the most significant factor in your credit score, so ensuring you never miss a payment is crucial for rebuilding. Setting up automatic payments guarantees your bills are paid on time, consistently building a positive record.
• Reduce your credit utilization ratio. Lenders look closely at how much of your available credit you use, and keeping this ratio below 30% is ideal. Paying down balances shows you can manage debt responsibly, which can significantly lift a 598 score.
• Apply for a secured credit card. A secured card requires a cash deposit as collateral, making it an accessible tool for those with fair or poor credit. Using it responsibly for small purchases and paying it off monthly demonstrates positive credit habits to the bureaus.

To help maximize rewards and make smarter spending decisions as you build your credit, consider using a tool like Kudos.