You don’t necessarily have to have problems with debt during your life to get refused for credit.
It is not because you have a bad credit history, but because you don’t have a credit history at all. Lenders will treat you as invisible if you have never entered into any kind of credit arrangement before, and this blank credit history of yours will be just as unattractive as one that is tarnished with a history of missed payments.
Lenders use your credit history in order to get an idea of effectively you manage your finances and your debts.
If you don’t have a credit history, then lenders will not be able to get any idea of what you’re like. For all they know you could be absolutely terrible when it comes to managing money, and without any history to refer to, the vast majority of lenders will not be prepared to take a risk on someone that they can’t assess. There is not really a quick fix to building your credit, it can often take many months or in some circumstances years of doing the right things to build a decent credit history.
Build credit credit cards will generally have a higher interest rate and a lower credit limit than more mainstream cards.
But they still offer you a good way to demonstrate to lenders that you can manage a line of credit by borrowing and repaying regularly. It has to be said that although there is no guaranteed acceptance with any credit card, people in your situation will have a much greater chance of being approved for one of these specialist cards than one from a more mainstream lender. Once you have managed to establish a good credit rating by never missing payments, you can then apply for more competitive forms of credit with a greater chance of being accepted. Different cards from different providers will come with different rates of interest and some will even come with added benefits, such as the ability to earn rewards
Whatever reason you have for having no credit, it does not need to be a permanent hindrance. It is possible to build your score, and one of the best ways to do this is by getting a credit builder credit card.