Definition
A thin credit file is a file with fewer than 2-3 active credit lines and a history of less than 2 years. A score may not be calculable if the file is too empty.
Typical cases: - **New immigrants**: no Canadian credit history, even if they had excellent records in their home country (credit bureaus don't share data internationally) - **Young adults**: first job, never had a credit card or loan - **People who have always paid cash**: no credit lines appear in their file
Solutions: - **Alternative credit**: some lenders accept proof of regular payment of rent, phone, and utilities as a substitute for traditional credit lines - **CMHC/NHA loan for immigrants**: CMHC has specific programs for recent permanent residents - **B-lenders**: more flexible for thin files with a larger down payment