More than 1.5 million people have lived more than 45 years having never borrowed a penny from a bank or lender.  However, this commendable existence could come back to bite as many of these credit virgins may struggle to secure a mortgage or even a mobile phone contract.

A credit score is a three digit number between 0 and 999 which is allocated to every adult in the UK and is used by banks to determine whether they should trust someone to pay back a mortgage, loan or credit card

However, there is a common misconception that opting not to use a credit card or loan makes you a more trust worthy borrower to a bank.  In fact, it does the opposite.

According to the research from Amigo loans, more than 13 million UK adults are oblivious to the fact that it is actually more difficult to secure credit, including a mortgage, if you’ve never used credit in the past.

The reason for this is that banks want trustworthy borrowers with a proven history of paying back debts – credit virgins simply don’t have the credentials.

The ignorance surrounding credit scores is apparent on a wide scale with only 12% of people in the UK having ever checked their own personal credit score.

With increasing financial pressure, families are buckling under the costs of everyday life. Missing bills may seem menial, but these can dramatically affect your credit score.  Nearly a quarter (22%) of those in the 45-54 age bracket have missed a payment, such as mobile phone payment or gas bill, which has affected their credit score and one in 20 have held a joint account with someone with

Glen Crawford, CEO at Amigo Loans, which commissioned the study said: “It’s so often that we hear customers ask why their bank wouldn’t lend to them when they’re so good with money – they’ve never had a credit card in their life, they’d say.  However, as ironic as it sounds, if you’ve never used credit, it’s often hard to access it.

“Many banks and lenders use credit scores as an indication of how likely you’d be to repay a debt, whether that be a £5,000 loan or a £5 overdraft.  But, if like millions of credit virgins, you’ve never demonstrated that you can be trusted, they shut the door. This is unfair and leaves lots of deserving, trustworthy people without access to finance such as a mortgage.”