What is a “thin file”?

You have a well-built credit history with a variety of credit types.

“Thin File” is another term for a low credit score.

Your credit history is little to none, which makes it difficult to obtain credit moving forward.

You have little to no record of being late on your payments - as a result, you have an outstanding credit score.

The correct answer is letter "C": Your credit history is little to none, which makes it difficult to obtain credit moving forward.

Explanation:

Having a thin credit file implies there is little to no information about your credit history. This scenario is typical for people who have not requested any credits in the past. When they apply for a loan for the first time, they might struggle because banks do not have much information to determine if that person will take care of the loan payments or not.

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