Were you recently denied for a loan or a credit card? When you apply for a loan, there are only a few factors that actually impact whether you get approved not. A part of the decision is based on the information you submit to the organization, however a much larger portion of the decision is based on your credit score.

So, if you were declined for a loan, it is very likely simply because you have a bad credit score. The main way to get a bad credit score is to have a lot of open credit or to have had a lot of late payments (in some cases, no payments made at all).

Financial institutions such as banks, car companies, lending agencies, credit cards and many others use your credit score as a wage of your ability to pay off the credit card. Not only can having bad credit work against you, but also NOT having any credit can be bad.

You would think that not having debt would be a positive thing, however, if you have no debt, no credit card, then there is no way for the credit reporting agencies to track your ability to pay - so that is why it can actually be recommended to get a credit card with your name on it when you're young (just make sure the limits are very low and that you pay off every penny on time).