If your credit score is ‘OK’ but not great, you’ll need to sort out things like:
- High balances on credit cards and overdrafts
- High overall amount of debt
- Missed payments
Being consistently at or near a credit card limit may be signal to a lender that you are struggling to pay bills and therefore reduce your credit score.
Tip: Try to stay well below your credit card and overdraft limits.
Having a high overall level of debt will also reduce your credit score.
Tip: Try and make sure you owe less than 20% of your annual income. This excludes any mortgage you may have.