Your debts are less than 50% of your annual income. For example, if you owe £5,000 and your earnings are £20,000 per year – your annual debt ratio is 25%. This ratio does not include any mortgages.
That’s great. But there’s room for improvement. Your credit score does better when you owe less. Having credit cards with high limits and low balances can give your credit score a boost.
Tip: paying off your credit card balance in full each month will improve your credit score and you’ll be more likely to get a loan.