Why a Thin Credit File Could be the Reason Behind Your Countless Failed Loan Applications, How to Fix it
Even when many of us nowadays seem to want to slim down their body sizes and weight, there's one thing that's better off when it's left fat - your credit file.
Most credit scoring systems require at least a three months old credit file in order to calculate a score.
However, a credit file with only one loan account is considered a "thin file" and probably won't result in favourable scores. That's because you lack sufficient loan history to demonstrate that you can manage credit well.
This can possibly hurt your chances of accessing loans anywhere at the best rates, if at all you are lucky to ever get one. When your credit file is very thin, a bank or a digital lender may be unable to calculate a credit score because there is not enough information in your credit history to do so.
How do you Then 'Fatten' up a Thin Credit File?
Borrowers with thin credit files can often feel like they're stuck in an impossible catch-22 situation: In order fatten up a thin credit file, you must have access to credit, but you can't get access to credit because you have a thin file.
But all is not lost. Just like going from having no muscles to being a bodybuilder, it is possible to build your credit file.
CreditHela Loan App
There are several ways to establish and build your credit file. One of the surest bets available, for instance, is applying for a 'credit-builder' loan from the CreditHela loan app.
As opposed to other lenders, CreditHela loan app has several other AI based ways of assessing a borrower's creditworthiness and their ability to repay their loans.
As such, if you now suspect that a thin credit file to have been the culprit to your endless loan denials all along, you know where to begin towards building a 'fat' credit file with unprecedented ease.