Lenders will often base their decision to offer you credit on how much of a risk they see you as presenting to their balance sheet. The rate at which they'll lend to you is also likely to be largely based on your perceived level of 'risk' too.

Most lenders will incorporate your credit score into their assessment of how risky you are to lend to. Generally, the better your score, the better the interest rate you are likely to be offered on your borrowing.

When you're looking at applying for credit it's a good idea to first check your credit score so that you know exactly what information potential lenders have on you, and which products you're likely to be accepted for. You can do this through credit reference agencies such as Experian, Equifax or CallCredit.

There are ways to improve your credit score and if you follow them through, and check your credit rating once you have completed the steps, you're likely to be eligible for better deals than before.