If you’ve been told that you have a ‘thin credit file’ then it’s just is a polite way of saying that a credit score agency has little or no information about your credit history.

Your history is the centralised record that a credit referencing agency holds about you. It includes loads of details about any credit you’ve taken out, or money you have borrowed or are borrowing.

Examples include credit cards, phone contracts or vehicle lease agreements.

Your credit history also covers your payment history such as how much you’ve borrowed, how many credit cards you’ve got and how reliable you have been making payments each month.

How to build-up a thin credit file

If you want to improve your credit file and make yourself more attractive to lenders then here’s some ideas to consider:

1 Get a credit card

Lenders want to see that you can borrow money and then pay it off successfully. One ideas is to get a card, particularly if you have not had one before, and then spend small amounts on its every month, which you then pay off via a Direct Debit.

2 Get your name put on a utility bill

Lenders and credit agencies can use utility bills as one way to examine your credit worthiness, so if you’re not on the utility bills at your home address, it’s time to get at least one of them transferred into your name.

3 Ensure you’re registered to vote

Lenders want to know where you live and how long you’ve been at the address. The easiest way to let them know is to be on the Electoral Roll.

4 Take out a small loan

We’re not suggesting you get into debt unnecessarily. But instead of paying for a relatively cheap item such as a washing machine or TV with cash, take out a loan; it’s a great way to build up your file. But you’ll need to be sure you can make the payments.

5 Update your addresses

If you’re the sort of person with unused bank and building society accounts, or unused credit cards, hanging about then it’s time to update them with your current address. Lenders don’t like it when they can’t see your current address clearly.

6 Use your rent to build your score

If you pay your rent through Credit Ladder then we’ll let Experian know each time your rent goes through successfully, and this can help build your credit score.

Find out more.

CreditLadder can help you improve your credit score

If you want to improve your credit position by reporting your rent payments, CreditLadder is the only way to improve your credit score and position across all four of the main Credit Reference Agencies in the UK, namely Experian, Equifax, TransUnion and Crediva. Building up a high credit score has a lot of benefits, including helping you access finance at better rates - this can also help save you money.

CreditLadder also runs a free mortgage application service in partnership with Tembo which will tell you how much you could borrow.

Remember the information provided in this article is for information purposes only and should not be considered as advice.