Your credit rating plays a crucial role in your financial life. Lenders use it to help decide if they'll give you a loan or credit, how much they’re willing to lend, and how much interest rate they’ll charge you.

If you’re looking into getting a mortgage, credit card, or loan, a good credit rating can make a significant difference in getting a good deal.

Following on from last month's Financial New Year's Resolutions, this time of year can bring more than its fair share of money worries. According to The Money Charity, the average total debt per UK household by November 2021 was £63,122.

So what can you do if you have bad credit?

Your credit score is a number ranging from 300-850 that deciphers how much credit a consumer is allowed to borrow, based on your financial history. The better your financial history, the higher your credit score will be, meaning more attractive lending rates for the borrower.