I have a "thin" file. How will this affect me qualifying for a mortgage loan?

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"Thin file" means that a consumer has a fairly short or "thin" credit history. In these situations, it can be difficult to accurately provide a credit score for the consumer since in essence there is no past history to score against.

When it comes to a mortgage, it depends on how "thin" your file is. Most likely, you have a pretty good score, but only have a few trade lines open, and for less than 24 months. Most lenders are looking for at least 2 or 3 accounts that have been open for at least 12 months, and have a substantial amount of activity. Some lenders have previously looked at alternate forms of credit, but in today's lending, the underwriters are scrutinizing every detail. There is a chance that if you have solid income, stable job history, significant down payment and additional assets, that you can be approved for a loan.

In order to build your credit file, you should use your credit regularly to pay for everyday purchases and pay them off every month. This will help you build responsible balance and monthly payment history which will bolster your ability to get a loan.

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(5 Total Comments)

Three years ago I also had a score in the 500's and orchard bank did give me a non secured mc with a $300 limit but it cost me $200 to get. But even if you get a secured on your credit file it won't be reported as such. There are only 2 options to increase your credit score and the FIRST is paying off your debt to zero balances. The second is rebuilding by disputes or time as they fall off of your file. There is no easy or short term solution. It took me 4 years of disputes and paying off old debt to get back to the good."

lucillekeas at 7:52 am Feb 1

I need help please...

just noticed that my husband has one public record. This is a lien for the state of Michigan because 2 years ago we owed the state from our income tax, I did the right thing and made arrangements with dept. of treasury- we never missed a payment, never late- will be paid off next month.

They say it is state law that if it is not paid in full after 90 days, they have to report it to the county I live in. They didnt tell me that when I did everything right and made the arrangments. Once it is reported to the county- the credit places pick it up.

so now this will be on the cr for 7 or 10 years- even though it is marked as "discharged" I dont think it is the "publics' business that we owed the state from our income tax (as thousands of people do) and since we paid like we were suppose to,why does it have to damage our credit?

Are all states this way?

Is there anything I can do to get it removed? Or to at least show I paid on time for 2 years.?

At this point our files are thin (with no credit at all).

How bad is a discharged public record?

thank you anyone who can help"

rupleb at 8:52 am Jan 25

A discharged public record is not that bad on a credit score basis. You are better serviced fixing the "thin file" status by getting a secured credit card and building credit history.

CK Moderator

There are a few things you need to consider when it comes to public judgements. First of all, in order to have one placed on your credit, the creditor has to go through the legal motions to do so and you will be served to go to court. If you ignored this, the judge will automatically approve the lien. Once this happens, even IF you make payments or have an arrangement the judgment stays. Now, if you have proof that you've paid the judgment, you should certainly dispute that. I had a judgment once, had the papers from the lawyers proving I paid it but because I didn't know what I was looking at on my credit report I had NO idea this judgment was open and marked unpaid until a mortgage broker asked me about it. Also, the law firm that filed the judgment against me, never updated the paid in full status and went out of business. Based on that fact the new law firm that takes over the case load [my file didn't disappear it was just moved to a different firm] filed a notice to vacate the judgment and only THEN was it finally removed from my credit.

lucillekeas at 7:45 am Feb 1

I too have a thin file, I pay my mortgage on time every month for 12 years I have 5 years left on my mortgage. I pay my bills that is in my name on time and I have a checking account and savings for 10 years. how do get good credit if no one reports on my behalf and I can't get them to. I always get the run around"

kem63 at 2:19 am Nov 17

Surprised to hear you have a thin file even with a mortgage. Consider a secured credit card with Orchard Bank or Public Savings Bank. It does require a deposit. The upside is that there is no credit requirement and it will help cure your thin file status.

CK Moderator

How long will it take to build a credit file?"

curtislee3 at 9:29 am Sep 14