'Take care of credit'

Graduates starting out in life should ensure that they look after their credit rating, according to one institution.

People who finish university tend to want to borrow money in order to kickstart their lives and they tend to have had little chance to build up a big file on their credit history, Equifax has said.

With this in mind, when searching for the best loans, recent graduates should consider the fact that they will need to make regular repayments.

Neil Munroe, external affairs director at Equifax, said: "People who come out of university will need credit to develop their lifestyles, while their incomes grow.

"If you do have credit, look after it, and make sure that you are making payments on a regular basis."

Having left university, former students may want to look around for the best mortgage, in which case the issue of credit history is also relevant, Mr Munroe added.

Landlords may wish to check a person's credit past, even if they only want to rent a property.

Research conducted by Equifax revealed that 44 per cent of students spend over £300 per month on living expenses alone.