You can have a thin credit file for a number of reasons, including: You have forgone credit use for any reason and paid cash for most things for sometime. You share or shared your finances with a spouse and most of the credit is or was in your spouse's name. You're young and are just establishing your credit as an ...
If you have a thin credit file, it means that there's not enough information in your credit reports to generate a credit score. A thin credit file makes it difficult to get approved for credit, but you can bulk up that file and make yourself more attractive to creditors.
Understanding a Thin File
Having a thin file can make it difficult to obtain credit or be approved for a loan, because it gives lenders very little information with which to judge the person's creditworthiness. To get around that problem, some lenders will consider other information in making their decisions.
Does your child have a credit score? Typically, only people over the age of 18 have a credit score — but it is possible for minors to have a credit report. A person under 18 can have a credit report if : ... An adult added the minor as an authorized user or opened a joint account in the minor's name.
A poor credit history can have wider-ranging consequences than you might think. Not only will a spotty credit report lead to higher interest rates and fewer loan options; it can also make it harder to find housing and acquire certain services.
A "thick" file generally is one that has more than five accounts that have been open for longer periods of time. If you are unable to qualify for a traditional credit account due to having a thin file, getting a secured account is one option that could help you begin building a stronger credit history.
After signing up for Credit Karma, you may discover that you have a thin file. Having a thin file means there isn't enough information on your credit reports to calculate your credit scores. Thin files can be common for people who are young, new to the country or don't have many open credit accounts.
Re: What will be considered a thick file? One factor that's indicative of a thick file is applying for a major credit card and getting $5000 starting limit or higher. No late payments, have over $150K credit lines from all major banks discussed here, 777 FICO scores, and inquiries dropping like flies.
The terms "limited credit" and "no credit" are typically used synonymously to describe anyone who has not been the primary account holder on a credit card or loan for three years.
No credit means no credit score. That means you have no credit report, which in turn means that you have no recent experience with loans or lines of credit. You may never have borrowed money from a lender that reports to the credit bureaus, which store information about your credit history.
Two MOST important factors taken into account when calculating your credit score? Payment history and amount of debt. Why is Having a thin file NOT an asset? If you do not have a credit score, no one can access your credit worthiness, which then makes it hard to obtain loans/additional credit going forward.
Credit scores can drop due to a variety of reasons, including late or missed payments, changes to your credit utilization rate, a change in your credit mix, closing older accounts (which may shorten your length of credit history overall), or applying for new credit accounts.
Do I have the cash for the down payment? Do I want to use my savings for this purchase? Does the purchase fit my budget? Could I use the credit I'll need in some better way?
A thin credit file typically refers to a credit history with fewer than five credit accounts on a credit report maintained by one of the three national credit reporting companies: Experian, TransUnion and Equifax. Approximately 62 million Americans have a thin file, according to an Experian report.
Kids can't open their own credit card account until they turn 18, and will need to prove independent income until they're 21. But even before then, minors can benefit from becoming authorized users on a family member's credit account.
You can get a credit card at 17 as an authorized user, but you have to be at least 18 years old to open a credit card account in your own name. And when you turn 18, you'll need to show that you have your own independent income to qualify.
This is an area where young adults are more prone to issues than older adults. Delinquency rates on credit card payments are significantly higher among those under 30 than any other age range, and that's one of the primary causes of their lower credit scores.
The average credit score for 18-year-olds is 631.
Originally Answered: What is a good credit score for a 19 year old? So, given the fact that the average credit score for people in their 20s is 630 and a “good” credit score is typically around 700, it's safe to say a good credit score in your 20s is in the high 600s or low 700s.