Millions of young adults are risk being unable to get a mortgage by damaging their credit rating before they turn 25, according to Amigo research.

Two thirds of 18-24-year olds who know their credit score currently sit in the ‘very poor’ category of 0-560 points outlined by credit reference agency Experian.

Common reasons for poor credit among those in their mid-20s are late and missed bill payments, unauthorised overdrafts and credit card rejections.

Of those under 25, 12% admit to missing a monthly phone bill, 11% say they’ve missed a credit payment, while ten% have fallen into unauthorised overdraft.

Worryingly, a third of people in this age category claimed that they were unaware that having no credit history at all could affect their chances of getting a mortgage.

Industry research claims half of UK adults are likely to be refused credit at some point. Poor credit ratings are not confined to lower earners either, with those earning more than £60,000 a year averaging worse scores than those earning between £10,000 and £60,000.

Glen Crawford, CEO at Amigo Loans, said: “When it comes to using credit, from the get go, borrowers need to be aware that keeping up a good credit score is absolutely key to securing a healthy financial future. It’s easy when you’re just starting out to slip-up on credit card payments or falling behind with paying bills but these common blunders can cost you in the future.”