Lenders generally prefer it when you have access to credit, but aren’t using it. This shows that you are managing your finances well and living within your means. If your balances on credit cards and overdrafts are increasing a lender might think you are using credit cards to pay for your day to day living costs. Consequently, they are more likely to decline your loan application or even charge you a higher rate of interest.
Tip: Wherever possible try and keep your credit cards and overdrafts below 50% of their limits. If you have a limit of £5,000, make sure the balance is below £2,500