Lenders use information from sources such as the electoral roll and look at the type of credit used, the length of credit history and payment history when scoring a potential borrower. Callcredit has provided a number of tips to help borrowers keep their credit file in good shape, such as registering for the electoral roll immediately after moving house. Other tips include keeping credit card balances low and paying off debt rather than moving it around.

Alison Nicholson, director of My Callcredit, said: “Many people think the amount you can borrow is linked directly to how much you earn but it is much more complicated than that.

“Each lender is different in how it uses your credit file to work out a score. Understanding the information held about you and how lenders might use it is the first step towards getting the best deals on credit you can.”