Have you tried but been unable to pull your credit report or see your credit score? This might be because of a thin credit file. A thin credit file is a credit report that does not have enough meaningful credit items to generate a score. Don’t worry though – this is something you can fix!
Over 62 million Americans have a thin credit file, so you’re not alone. There are a few reasons why you may have a thin credit file. Check and see if you fit into any of these categories:
These next two reasons are less likely but still possible.
Now that you’ve learned why you may have a thin file, it’s time to kick off the credit building process that will generate a report and score. This is actually an exciting situation because it means you have a clean slate to build a new, positive credit history! There are several good ways to get started:
Friendly Tip – whatever credit card you choose, make sure you understand the terms you’re agreeing to, such as interest rates and annual fees.
Another great way to establish credit is through a credit-building app. Apps like Level Credit or Stellarfi help you build positive credit history by reporting to the credit bureaus your on-time payments for rent, utilities, or subscriptions. You are already making these payments, so why not get credit for them?
Taking Care of Your Credit
Always be sure to make your credit card and bill payments on time. Pay more than the minimum payment whenever you can and avoid borrowing more than you can pay back. Making a late payment will be very damaging to your credit score.
As you begin to establish credit, keep an eye on your credit report to make sure there are no errors or signs of credit fraud. If you find anything that looks like a mistake, contact Dovly, an automated credit engine, to help you dispute them with the credit bureaus. Give it a try risk-free with our free membership tier.