Many people have low credit scores and don’t really understand why. They pay their bills on time, try to be careful with money, and avoid big mistakes, yet their score still refuses to improve. This can feel frustrating and confusing.
The truth is, credit scores are affected by many things most people don’t think about. It’s not just about paying on time. Small everyday habits, things that seem harmless or even responsible, can quietly drag your score down without you noticing. Over time, these habits add up and make it harder to qualify for better credit, lower interest rates, or important financial opportunities.
Below are seven common credit card mistakes that many people make without realizing it. Research shows these mistakes can have a real and lasting effect on your credit score. Understanding why they matter is the first step toward fixing them and putting your credit back on the right path.
1. Carrying a High Balance Even When You Pay on Time
One of the biggest misconceptions about credit cards is that paying on time is all that matters. While payment history is important, research from major credit bureaus shows that credit utilization — how much of your available credit you use plays a major role in determining your score.
Credit utilization is calculated by dividing your current balance by your total credit limit. For example, if you have a £3,000 limit and regularly carry a £2,400 balance, your utilization rate is 80%. Studies consistently show that people with utilization above 50% are viewed as higher risk by lenders, even if they have never missed a payment.
Why does this matter so much? High balances suggest financial pressure. Lenders assume that someone who is close to maxing out their cards may struggle if their income changes or expenses increase. As a result, credit scoring models penalize high utilization because it predicts future default risk more accurately than income alone.
Another issue is timing. Many people pay their cards in full after the statement is generated, but before the due date. Unfortunately, most lenders report the balance shown on the statement, not the balance after payment. This means your credit report may show high usage even if you clear the card every month. The solution is not to stop using credit, but to manage balances carefully. Keeping utilization below 30% — and ideally under 10% — is linked with higher credit scores. Paying balances down before the statement date and spreading spending across multiple cards can significantly improve how lenders view your credit behavior.
