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Not financial advice: this is general education. Your situation is different, so read every product's full terms and consider free help from a nonprofit credit counselor before taking on new credit.
What is a thin credit file?
A "thin file" means your credit reports have too few accounts, or too little recent activity, for a scoring model to produce a reliable score. Common reasons include being young, new to the US, or having paid for everything in cash. Some people have no report at all.
What it takes to get a FICO score
According to myFICO, you generally need at least one account that's been open for six months or more, and at least one account reported to the bureau in the last six months. VantageScore models can often score people with less history. Either way, the fix is the same: get one or two accounts that report to the bureaus, and pay them on time.
Ways to start, from lowest to higher risk
- Become an authorized user on a trusted family member's card with a long, on-time history and low balance. Check that the issuer reports authorized users. Their mistakes can show up on your report too.
- Add payments you already make. Experian Boost can add eligible on-time payments such as utilities, phone and some streaming bills to your Experian file. Some landlords and services report rent. These only help scores that use that bureau's data.
- A secured credit card. See secured cards explained.
- A credit-builder loan from a credit union, community bank or online lender. See how they work.
- A student or starter card, if you have income and an issuer will approve you.
- A car-secured card such as Yendo, if you own a vehicle with equity and understand the collateral risk. See our Yendo review.
Habits that build a score
- Pay every bill on time. Autopay for at least the minimum is a good safety net.
- Keep reported balances low compared with your limits.
- Don't apply for lots of new credit at once, since each hard inquiry can lower your score slightly.
- Keep your oldest accounts open if they don't cost you anything.
Watch out for "credit repair" promises
Nobody can legally remove accurate, timely negative information from your report, and it's illegal for credit repair companies to charge you before they've done the work. Anything they can legally do, you can do yourself for free. See the FTC on credit repair.
Building credit in Canada instead? Our sister site covers building credit as a newcomer to Canada.
More guides
- Secured Credit Cards Explained: How They Work and How to Graduate
- How Credit-Builder Loans Work (and When They Make Sense)
- Credit Utilization Explained: The 30% Rule and What Really Matters
- How to Check Your Credit Report for Free on AnnualCreditReport.com
- Yendo Credit Card Review: A Card Secured by Your Car
- Yendo vs a Regular Secured Credit Card: Which Fits You?