If you are denied credit by a lender, you have the right to a copy of the credit report if that decision was due to derogatory credit. You can then request an investigation to any disputed items. If you have derogatory items on your report, and you do not dispute them, they can effect your ability to obtain credit. If you fail to meet your obligations, the creditors can repossess any merchandise purchased in relation to that debt, they can garnish your wages and report the items to the credit bureaus. It is very important to meet your credit obligations in a timely manner.
Some people believe that they have no credit.
In fact, it is almost impossible not to have credit. If you do not have credit card or other consumer credit, you will need to provide your lender with a minimum twelve-month payment history from at least four other sources. Lenders will make sure that enough time has past since the incident before granting credit. It takes between one to two years to qualify for a mortgage after missing payments due to mismanagement. It could take less time to qualify for other situations that effect your ability to pay.