Credit explained
How much do you know about credit? Get to grips with some credit basics, or find information and support, by reading our handy credit guides.
Get a basic understanding
There are lots of credit types to choose from, depending on your immediate and longer-term needs. If you’re planning to borrow money, it’s important to understand how credit works first.
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What is an interest rate?
Understanding the costs
Lenders usually charge interest as a percentage of anything you borrow. Other fees and charges might also apply.
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Knowing what you can afford
Before you start
Think about whether you’ll be able to afford your repayment over time, remembering to account for borrowing costs like interest, fees and charges, as well as potential changes in your circumstances.
What do lenders look for?
To make a decision on a credit application, it’s usual for lenders and other service providers to complete credit checks, assessing your reliability as a borrower, and the risk of lending to you.
Money worries?
If you’re ever struggling to make payments, please get in touch so we can find a way to help. Our friendly team can offer support, or you can find useful information online.
Making sure you get a fair deal
We want you to find a product that's right for your circumstances, which is why we adhere to the Standards of Lending Practice, which are monitored and enforced by the LSB.
To find out more you can read the statement of responsibilities, which details what's expected of us, the lender and you the borrower.
Halifax is a division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ. Bank of Scotland plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 169628.