You have to build up your credit history. Start small!
Credit scores are based on your credit history and how you have previously loaned money. So, if you are young or have never taken out any sort of debt and deal mainly with cash, you will likely not have a credit history.
The best way to build a credit history from scratch is to open a store account at a retailer you shop with. If you periodically buy an item using the credit facility and then pay back the debt well within the time limit, you will start to build a good credit history.
Generally, 6 months is the minimum amount of time you are required to have with an open account before a credit score can be generated. This is sometimes longer.
Remember: don’t borrow more than you can pay off. Buy small amounts on credit and always pay back on time.
Once you have built a good history, you may qualify for a low barrier to entry credit card. The same rules apply here, use a very small amount of your credit limit each month, and always pay back the full amount on time.
Why is it important to have a good credit score?
Having a good credit score means you can qualify for better products if you need to borrow money. Almost every reputable lender will never lend you money without any credit score at all.
When you improve your credit score, the lenders will view you as less risky, and your loan application is much more likely to be approved, and will also be cheaper for you.