A thin credit file is a credit history that does not show enough information for creditors to make informed decisions about granting you access to lines of credit and other financial products.
If you make all your monthly payments on time and do this consistently, your approval odds for future credit needs will dramatically improve, opening many doors for you down the road.
What Credit Accounts Should I Consider First to Build My Credit Score?
1. Secured Credit Card
A secured credit card is a type of credit card that requires you to put down an upfront cash deposit, usually equaling the amount of your credit limit.
What Credit Accounts Should I Consider First to Build My Credit Score?
2. Credit Builder Loan
A credit builder loan functions as a tool for people who have low or no credit history. They can use them to begin building up their credit scores by establishing a credit history.
What Credit Accounts Should I Consider First to Build My Credit Score?
3. Authorized User Status
If you don’t meet the requirements for having credit cards on your own, having an authorized user status on a cardholder’s account might be beneficial to building positive “payment history,” a credit scoring component.