Martin Lewis dismisses common credit score myth: 'Forget it'ITV, This Morning
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00:00You do not have a single number that represents your credit score
00:04or your credit rating.
00:05There's no such thing as a credit blacklist.
00:07Now, of course, if you're a bad risk, many firms will reject you.
00:10You'll feel like there's a blacklist, but there isn't a blacklist.
00:13Now, I know there'll be people out there going,
00:15what are you talking about? I've paid for my credit score.
00:17I know what my credit score is.
00:18What happens is, the three credit reference agencies,
00:22Equifax, Experian and TransUnion,
00:24years ago, some clever guy there or clever woman there went,
00:27you know what, we're only making money from companies.
00:29We could sell consumers their information
00:32in a much fancier format and get them to pay for it.
00:35And that's what happened.
00:36So, your credit score that you get from those agencies
00:38is useful as a rough indication of how a typical lender may see you.
00:44But it doesn't actually feed in in full to how lenders credit score.
00:49They do their own modelling.
00:51So, what I would say, I get loads of people who say,
00:53my credit score's just dropped by three points from 972 to 969.
00:57Should you be worried? And I'm like, forget it.