Credit report: what is it and how do you deal with it?

Lenders use your credit report and score to decide whether to lend to you. It helps to understand it even if you do not plan to borrow: pay on time and avoid debt.

1. Paying on time is the most important part of your score. Pay your bills and commitments when due, and contact the lender right away if you expect to be late.
2. Avoid borrowing where you can; the interest on debt usually exceeds any gain. For any product with interest, ask a qualified scholar before you enter it.
3. If you use a card after asking scholars about its ruling, keep your use under 30 percent of the limit and pay the balance in full by the due date.
4. Do not apply for many loans or cards close together; each application records an inquiry on your report.
5. Check your credit report from time to time for errors or activity you did not make. The FCAC page explains how to correct mistakes.

Caution: For education only. Some options involve interest, and we do not give a religious ruling on them; ask a qualified scholar.

Bottom line: Lenders use your credit report and score to decide whether to lend to you. It helps to understand it even if you do not plan to borrow: pay on time and avoid debt.

Last reviewed: 1 October 2026