Thick VS Thin profiles

[Anonymous]

To sum it up a Thick file just means you can handle multiple different types of credit. An example of a thick file would be:

1. Installment Debt = Loans, Mortgages - Important to lenders because these forms of debt are set payment's over a course of time.

2. Revolving Debt = Credit cards - Important but lenders know you control this type of debt unlike installment loans which is debt agreed over a set amount of time.

3. Credit History = Average Age of all Combined. - Just shows how well you've been managing your debt when no one's looking.

That's basically it. I could go on for hours about how it's this and that trying to make myself sound like some credit guru but really that's all it is.

Now do you need all three factors to have good credit? Not at all, Fico and other credit agencies will tell you this but frankly most of the stuff they say is common sense and not helpful at all.

Having ok credit history on revolving debt for 2+ years, having a combined credit limit on all cards above $30k with no or little debt & low credit utilization puts you in the 700s.

Good Luck.

[Revelate]

Actually thin vs thick is a standard industry term in the mortgage world, which has changed a little over time, but the current model:

2 or less tradelines: thin file

3+ tradelines: thick file

The split between the two groups used to be at 4 tradelines, I don't know when they changed it, but it has nothing to do with length of payment history - one tradeline open for 20 years is still a thin file; however, admittedly the term has been somewhat bastardized here much like the use of "prime vs subprime" to apply to things like credit cards.

[Anonymous]

Hi credit guy, I can't remember the exact language that they used in the letter but I remember reading "thin line od credit. When I called them, they asked me if I want to apply cc with my husband, I politely declined.

It was early August and at that time I only have citi secured $300, Capone plat $500 and QS1 $500. I applied cause Credit Karma shows that I have good chance of getting approved 

[Anonymous]

Well, Tess, as you have heard others mentioned, Discover tends to be more accepting of thinner profiles than others, though no issuer prefers thin to thick.

Hard to know what was going on.  The letter might have been incorporating an idea of "lack of age" into its idea on Thin -- who knows for sure.  But it looks like you have four cards now.  If you use them responsibly each month for another six months you will have no problem getting a Discover if you really want one.

(Tip: in the month before you apply, get all cards but one to a zero balance with your total utilization in the 1-4% range.)