If you want to qualify for the best loan and credit card rates, then you need a good credit rating.

In the UK, companies called ‘Credit Reference Agencies’ (CRAs) compile information on how well you manage credit and make your payments.

Building a good credit score is important because it can affect your ability to borrow money or access products such as credit cards or loans.

Most of us need to borrow money at some point in our lives, and it’s not necessarily a bad thing. Using the right type of credit in the best way can help you deal with unexpected expenditure.

Before you borrow money, make sure you can afford the monthly repayments on top of your current outgoings.

Working out the true cost of borrowing means taking into account:

Some credit cards and loans can come with higher fees than other forms of borrowing.

A secured loan is money you borrow secured against an asset you own, usually your home. Interest rates on secured loans tend to be lower than what you would be charged on unsecured loans, but they can be a much riskier option.

It can be tempting to ask friends or relatives to lend you money. But you need to think carefully about whether you can afford to repay it, and can cope with what might happen if you can’t.

Be aware that as well as paying back what you borrow, you might also have to pay interest.

If you’ve been turned down for a credit card or loan, there are steps you can take to find out why. It’s also important not to do anything that might damage your credit rating.

When you’re borrowing money, it’s important to understand how much the different options cost and how they work. You also need to know how those costs vary depending on the amount you’re borrowing and for how long.

To be accepted for a credit card, personal loan, mortgage, overdraft or most other forms of borrowing in the UK, you’ll usually need to have a good credit history and credit score.

If you’ve ever shopped online, you’ve probably seen the option to ‘Buy Now Pay Later’ (BNPL). While it might be tempting to delay payment for something you want to buy – and the adverts can often be very enticing – it can be a slippery slope to spending more than you can afford.

Used well, a credit card is a secure and flexible way to pay and can be a good way to spread the cost of major purchases. But if you only make minimum payments or run up a bill you can’t pay back, credit cards can be costly and can lead to a spiral of debt.

When you know the type of credit card you’re after, comparison websites can help you find the best deal. But before you pick a deal, you need to understand not all comparison sites show every available option.

Choosing the right credit card to meet your needs is important. Get it wrong, and it could cost you more than you thought, or you could miss out on beneficial features.

Using a credit card for your spending can have many benefits, from added legal protection to earning cashback at your favourite retailer. But if you don’t pay your card off in full each month, credit card debt can quickly mount up.

Credit cards can be a low or zero cost way to borrow if you use them in the right way — but get it wrong and you could find your debts spiral out of control.

Balance transfers can help you to lower the cost of your credit card borrowing and consolidate multiple debts.

If you have a credit card or overdraft but want to increase your credit limit, how can you go about it? Find out what you can do to increase your limit and, more importantly, whether you should.

The money the union holds in savings and current accounts is lent out to other members who need to borrow money at an affordable rate.

Payday loans are an expensive way to borrow. Never take out a payday loan unless you’re certain you can repay it on time and in full – otherwise, the costs can soon spiral out of control.