Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Posted in Credit Report
I have a "thin" file. How will this affect me qualifying for a mortgage loan?
Profile Image

Question By
DuelleMarley

2 Contributions
1 Person Helped
Best Response Chosen by   Profile Image DuelleMarley
Helpful to 13 out of 14 people

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

When it comes to a mortgages, 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.

Top Contributor

Response by
chuyskywalke

30 Contributions
114 People Helped
All Responses
Results 1-8 of 8Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Most Helpful Response
Helpful to 13 out of 14 people

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

When it comes to a mortgages, 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.

Top Contributor

Response by
chuyskywalke

30 Contributions
114 People Helped

I spoke to a V.A. financial consultant a few days ago. she told me I need to try to get a secured credit card with my bank. she also told me that I should use the card to pay my monthly bills and then pay all of the balance when due, except for $10 that it will show a history faster and bring my score up faster, the V.A. consultant said in 5 to 6 months. IS THIS TRUE. I have been lied to by the V.A before.

Response by
kem63

3 Contributions
0 People Helped

We started our credit history at the end of 2009 with a Citi secure credit card. I have separate credit card with combined account with my husband. We paid everything on time. We use our credit cards regularly. A few days ago I applied for club credit cards at Gap and Nordstrom. I was rejected. I decided to check my credit history and the answer at your system was that I had thin credit history to file.

How long should we wait to get a "fat" credit history?

And my husband now started to receive the mail from banks that they reviewed his credit history and offer him credit cards now.

Response by
mahsa

2 Contributions
0 People Helped

Considering that you only have 4-6 months of credit history you are definitely still thin file. Just remember different companies view thin files differently. If you are getting pre-screened offers in the mail, consider them. Just remember that many program for people without credit can be more expensive so shop before you commit.

Review by
CK Moderator

well how do you get a first credit product if you have a secured credit card and they dont turn these things into the credit companies and by the way it is looking like the only thing a person can do is get a secured card. How do these cards work?

Response by
blanny431

1 Contribution
0 People Helped

A secured card card does report to the credit bureaus. There is a very long discussion in Public Savings Bank about secured cards.

Review by
CK Moderator

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.

Response by
lucillekeas

5 Contributions
2 People Helped

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

Response by
rupleb

1 Contribution
0 People Helped

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.

Review by
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.

Reply by
lucillekeas

5 Contributions
2 People Helped

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

Response by
kem63

3 Contributions
0 People Helped

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.

Review by
CK Moderator

How long will it take to build a credit file?

Response by
curtislee3

3 Contributions
0 People Helped

You will have a credit file as soon as you get your first credit product.

Review by
CK Moderator

Results 1-8 of 8Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Reply to this Question

Write your response:

Enter Your Comments
Submit to the Community