One day, Vanessa looked up her credit score. She was shocked to discover it was only 621.
Her parents had warned her about the dangers of credit cards so fervently that she’d avoided them completely, leaving her with a sub-par score. We advised her to open a secured credit card and pay it off every month in full to build his credit. She took our advice, and within five months her score was 731.
When Richard, graduated college, he felt confident about his finances. He had no student loans and had been responsibly using a credit card for four years. His credit score was already solid.
Problems emerged when he and his roommate went to apply for an apartment in Denver. The apartment broker ran his credit report and discovered that Richard had a thin file, which means his credit card wasn’t reporting activity to all three credit bureaus. Luckily, he was approved for the apartment, but the experience taught him an important lesson about not relying on one form of credit.
“The first way I began fixing my thin file was to get a second credit card,” she said.