Credit is any sort of arrangement by which you obtain money, goods or services and agree to repay at a later date.

Certain information about you and any existing credit agreements is held by a credit reference agency. A credit provider will check this information before deciding whether to lend you money.

Using a credit card can be a useful way of paying for shopping, making online purchases, or making purchases abroad.

Like other forms of borrowing, a loan helps pay for something when for some reason the money isn't already available.

Because relatively few people have enough ready cash to buy a house, the majority of home owners take out a loan for the purchase.

Other forms of credit include bank overdrafts, store cards and Buy Now Pay Later schemes.