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What Does "Insufficient Credit" Mean?
What Does "Insufficient Credit" Mean?
Chelsea avatar
Written by Chelsea
Updated yesterday

When a credit report shows "insufficient credit," it means there is not enough credit history or activity to accurately assess an individual's creditworthiness and generate a score. This can happen for several reasons:

1. Limited Credit History

  • The individual has no prior credit history, making it impossible to generate a reliable credit score.

  • Common for young adults or those who have never used credit cards, loans, or other credit products.

2. Thin Credit File

  • A "thin credit file" means the individual has very few credit accounts or limited credit activity on their report.

  • Without enough credit data, the system cannot determine a credit score.

3. New Credit Accounts

  • TransUnion requires at least 6 months of credit history to generate a score.

  • If an individual has recently opened accounts but their oldest account is less than 6 months old, their credit report may show "insufficient credit."

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