What is a thin file?
You may be told by a potential lender that you have a thin credit file.
A thin file means:
- the number and types of credit relationships you have both currently and historically do not supply enough information in your credit record at the credit bureau for a meaningful credit score to be created; or
- the credit relationships you do have are all too recent or too young for a meaningful score to be created; or
- both 1 and 2 may be affecting you
Many lenders follow a credit underwriting process that requires a valid credit score. So if the credit record is too thin for a score to be derived, the lender will decline to approve your credit application.