When flexible friends turn into enemies

GETTING your first credit card is a huge financial milestone, and while it can offer rewards and convenience, it also comes with responsibilities and risks.

- 

Misusing a credit card can lead to debt, fees and long-term credit damage, so it's crucial to understand how they work

We spoke to Craig Tebbutt, financial expert at Equifax UK, to find out what you need to know to make informed, confident choices with your card.

How does it work?

"A credit card, first and foremost, is a flexible form of credit to a certain limit," says Craig.

"Cards get issued and you get your interest rate and spending limit applied. You can accrue that debt and pay it off either with monthly payments or all in one go."

Your credit score

A credit score is a three-digit number, typically between 300 and 850, designed to represent your credit risk or the likelihood you will pay your bills on time.

"A credit score is an indication of the information on your credit report," says Craig.

"It gives you an indication of how lenders may then interpret that credit information when granting credit for a credit card."

You can get a detailed view of your credit report and credit score out of 1,000 on Equifax UK's website (equifax.co.uk).

"Within that service there's also a detailed FAQs section which can help you understand what the things on your credit card and credit file may mean, how to interpret your credit score, and also how to improve it."

What age should people get their first credit card?

To apply for a credit card in the UK, you must be over 18 and a resident.

But your financial circumstances matter