If you have little to no credit history, it could be hard for you to qualify for common borrowing products such as credit cards, auto loans or retail financing, since most lenders require a credit history to open an account.
Taking out a personal loan can help you establish a credit history and demonstrate good money management skills. Doing so will help you prepare for other borrowing products in the future, such as a mortgage. Additionally, having good or excellent credit will expand your borrowing options and give you access to the best interest rates on future borrowing products.