Martin Lewis says Brits with ‘good credit | U.Okay.Finance News
Martin Lewis has defined why having a good credit rating would not all the time guarantee that you will be accepted for credit. The Money Saving Expert founder defined all on his BBC 5 Live podcast.The money guru shared a clip on X alongside the message: “Why even a perfect Credit Score doesn’t mean you’ll be accepted for credit.” He stated people usually say to him: ‘I don’t perceive, I’ve simply been rejected from an software for credit, however I’ve obtained a good credit rating.’ Lewis stated: “Well, the first thing is, the credit score you get from credit reference agencies is only a loose indication of how they think a typical lender would look at you. You don’t have a single number that dictates your credit rating or your credit score in the UK. Each lender scores you differently based on its own profitability wishlist.”The Money Saving Expert added that “more importantly”, the knowledge that’s going into your credit rating is not every thing a lender appears at. They get info out of your credit file, any previous dealings they’ve had with you, and “crucially”, your software type and “the big thing that’s on there is your income”.Lewis stated: “And that makes a huge distinction as a result of if you apply for merchandise, lenders aren’t simply your credit rating, making an attempt to foretell your future behaviour primarily based in your previous, they’re additionally doing an affordability rating. Can this particular person afford to repay?”So you might have a perfect credit score that shows you behave well, but if you don’t have the income to repay the product, well, you’ll still be rejected, and all of those are factored in when you’re applying for something.”The clip was shared to X (previously Twitter), the place followers of the money professional shared their dislike of the credit rating system.One wrote: “It’s all a joke. My credit score goes up when I carry some debt. I prefer not to do that so my credit score takes a hit.”While one other added: “I recently paid my mortgage off and instantly lost 150 points off my credit score. What a rubbish system.”Martin Lewis has beforehand shared advice on how to improve your credit rating.Tips included registering to vote, by no means miss or be late on credit repayments, keep your funds separate out of your companions, and verify the addresses on previous accounts.
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