"If you have never had a credit card, loan or mortgage, you may not have much of a credit rating to speak of."
You want to rebuild your credit rating
If you have never had a credit card, loan or mortgage, you may not have much of a credit rating to speak of. This can make lending difficult and may mean you lose out on some of the better deals available as lenders don’t have the proof they need that you’re able to borrow and pay back money responsibly.
If you’re looking for your first mortgage or a loan, you could find you’re turned down as a result, which can be frustrating.
There are some credit-builder credit cards, such as the Ocean Credit Card, available that allow people with a limited credit history to build one. Often, the interest you pay on these is slightly higher and there may not be any additional benefits, but once you have built up a healthy credit rating you could consider switching.
Just make sure that you pay off your borrowing on time every month and where possible pay in full. If you miss repayments or pay less than the minimum charge you could find you end up harming your credit rating.