Essence is a student without a history of any credit, effectively meaning that she is not considered creditworthy. Before she applies for any loans, lenders will look into her past. By virtue of having no activity, she has a low credit score. 

What creditworthiness means: 

It’s essentially an indicator of the level of risk that an applicant comes with. The lower the risk involved, the higher the chance that a lender will grant an individual finance. 

Creditworthiness is an important part of having applications for finance approved. 

Credit reports are likely to be reliable indicators of how well agreements have been handled. 

The word can be regarded as quite self-explanatory, considering that it refers to how worthy you are of credit. 

Essence needs to change some of her behaviour if she wants to improve her score. By maintaining her credit agreements well, she is likely to develop a higher level of trust with credit providers. 

She needs to be wary of accumulating too much debt too. The more debt she has to her name, the more of a risk she will be considered. Essence need to ensure that she avoids applying for loans or credit cards at the same time as well.  

If Essence wants to apply for a home loan, for instance, she needs to know that her credit score must be above-average. She needs to conduct her finances excellently without fail every month to ualify for the best interest rates. 

For Essence and others who may be in positions such as hers, having an understanding of this is key. With the right knowledge she is able to make decisions that lean towards working in her favour and that may help to put her in better financial positions. With all tools, she can find ways to improve her ratings and to understand what credit providers are looking for.