Your first experience with credit can be a little confusing. Managing credit wisely is an important factor in your financial success so understanding all the elements of credit is key. A good credit score can help you in buying a home, starting a business or getting a car loan.
Building a basic understanding of how credit works can help you make the right borrowing and payment decisions throughout life.
In this guide from luminablog.co.uk, we will go over everything you need to know about building credit — even if you have no credit history whatsoever.
Many people use these two terms interchangeably, but they have different meanings. Your credit score is a number between 300 and 850, with the higher score being better. It represents your level of credit risk to potential lenders.
For example, if you’re in the …