In order to establish a credit rating, one needs to have been given credit by a local store or by getting a credit card. Once your name and social security number is identified with a credit accepting establishment or credit card company, you begin to develop a credit rating. That begins your credit history. Your credit card company will let the credit reporting agencies know if you are delinquent in making a payment.
Even one late payment could get reported against you. Your credit rating depends on your making your payments on time. If you have other discrepancies with a credit offering store or credit card company that could result in your losing your credit, your credit rating will be seriously affected. In other words, you will have established a poor credit rating which can affect your future goals even of getting a mortgage or of buying a car. Do not lose faith: there are several financial institutions that can provide to you loans for bad credit. All of your late payments, closed accounts, and other negative credit reports are stored in credit report agencies files and are available to any one who makes a credit search on you before giving you credit.
On the other hand, if you pay your bill on time, you will get positive reports sent about you and any other lending institution will favor you with more credit. If you develop a good credit rating, you will have no problem in getting a mortgage or in buying a car. The point to remember is that you need to establish a credit record either good or bad in order to qualify for additional credit including mortgages. If you have no credit history, you will find that trying to get a mortgage or even trying to buy a car on credit is very difficult.
The personal loans lender would have to investigate you and some lenders with the exception of banks, if you have a bank account, do not want to be bothered. Establishing a credit history is part of becoming a part of the financial community that has learned to depend on credit reporting agencies to determine whether or not a person is a good or a poor credit risk. Once you have a credit history, you can not avoid it when trying to get more credit.
In other words, it does not become your choice to use or not to use your credit score when applying for more credit or when applying for a loan especially from a bank or from a mortgage company or car dealer.