The full explanation
A good history helps you get housing, bank accounts, cards and loans, and lowers the interest you pay. If you have no history, or very little (a thin file), there may not be enough information to produce a score. Paying with a debit card, cash or a prepaid card usually does not build it.
An example
Mateo always paid cash and has no credit history. He opens a secured card, pays it on time every month and starts building a history with the bureaus.
You will see it in…
- Your credit report, in the list of accounts and payments
- The mortgage application, when the lender reviews your credit
- Rental housing applications
