If you have been looking into your credit history lately, you may have come across the thin file. 

Having a thin file on your credit report is significant, but the concept can be confusing.

When you have little or no credit history, it is referred to as having a thin file. 

So, for example, a person who has never taken out a loan, or had a credit card, will have a thin file. 

Equifax, Experian, and TransUnion – the three major credit bureaus in the US – compile data regarding your financial activity to determine what is called your ‘credit score.’ 

One of the main factors used to determine your score is your credit history. 

The longer the history – as long as it's positive – the better your score will be. 

Having a thin file, or little credit history, can make it very difficult to secure a loan or new credit. 

So if you do have a thin file, how can you improve your credit score?

You can start by opening and regularly utilizing a credit card. 

Instead of paying cash for your morning coffee, use the card. 

Each purchase, and subsequently each payment that you make to resolve that purchase, will add another chapter to the story of your credit history.

If you need a loan NOW, you can consider asking the lender to take a look at some of your financial history that isn't recorded by the bureaus, such as bill and rent payments.

So to summarize, by regularly using your credit, you can remedy a thin file. 

If you would like to learn more about credit scores, get advice on how to improve your credit, or require professional assistance in repairing your credit score, feel free to drop by our office or reply directly to this email to get in touch with us :)