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Core Guide

Overdrafts Explained

• An overdraft is borrowing on your current account • Arranged overdrafts are agreed in advance; unarranged are not • Overdraft interest is usually charged daily • Long-term overdraft use can become very costly • If you’re persistently overdrawn, you may be eligible for support from your bank

28 May 2026
Core Guide

Credit Scores Explained

• Your score is based on your credit report, but lenders use their own models • Payment history and missed payments matter a lot • High credit utilisation can reduce your score • Stable personal details and electoral roll registration help • Improvements usually take time, not days

28 May 2026
Core Guide

APR & Interest Rates Explained

• Interest is the cost of borrowing money • APR includes interest plus compulsory fees • Representative APR applies to 51% of approved applicants • Higher credit risk usually means higher APR • The lowest APR advertised may not be the rate you receive

28 May 2026
Core Guide

Buy Now Pay Later Explained

• BNPL is a form of short-term credit • Many offers are interest-free if paid on time • Missed payments can trigger fees and collections • Multiple BNPL plans can build up unnoticed • It should be used for planned purchases — not essential bills

28 May 2026
Core Guide

Direct Debits & Standing Orders Explained

• Direct Debits are controlled by the company taking payment • Standing orders are controlled by you • Direct Debits are covered by the Direct Debit Guarantee • Standing orders must be manually amended or cancelled • Both can impact your credit file if payments fail

28 May 2026
Core Guide

Hard vs Soft Credit Checks Explained

• Soft checks are for eligibility and identity; they do not affect your score • Hard checks are linked to credit applications and can affect acceptance • Multiple hard checks in a short time can look risky to lenders • Eligibility tools help you avoid unnecessary hard searches • You can check your credit file for free through major services

28 May 2026