Martin Lewis explains why perfect credit score might not secure mortgage

Martin Lewis explains why perfect credit score might not secure mortgageThis Morning, ITV

Transcript

00:00 Well, look, we just have to get away from being hung up too much about credit scores.

00:05 You do not have a credit score in the UK.

00:07 The one that you're given by the credit reference agencies is just their indication of a loose

00:12 guide to what a typical company might look at you if it was only looking at your credit

00:17 history.

00:18 Now, the fact there are three different credit reference agencies and they don't all score

00:21 the same shows you you don't have a credit score.

00:24 So don't get too hung up about small movements on that.

00:27 And the big thing everybody forgets is your credit score doesn't include the single most

00:31 important factor that is looked at when you apply for any form of credit, your income.

00:37 Let's make this be extreme on this.

00:39 If you have no income and a perfect credit score and you wanted a loan, you're almost

00:43 certainly not going to get it because you can't pay it back.

00:47 So when you tell me you've been rejected, what you haven't told me is the crucial factor.

00:51 You know, you talked about being made redundant.

00:53 Well, if you've been made redundant and you don't have a job and you don't have income,

00:56 even with a great credit score, it is of course going to make getting credit much more difficult.