Martin Lewis says Brits with ‘perfect credit score’ may still be rejected loans | Personal Finance | Finance

Martin Lewis has explained why having a perfect credit score doesn’t always guarantee that you’ll be accepted for credit. The Money Saving Expert founder explained 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 said people often say to him: ‘I don’t understand, I’ve just been rejected from an application for credit, but I’ve got a perfect credit score.’ Lewis said: “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 information that’s going into your credit score isn’t everything a lender looks at. They get information from your credit file, any past dealings they’ve had with you, and “crucially”, your application form and “the big thing that’s on there is your income”.

Lewis said: “And that makes a massive difference because when you apply for products, lenders aren’t just looking at your credit score, trying to predict your future behaviour based on your past, they’re also doing an affordability score. Can this 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 (formerly Twitter), where fans of the money expert shared their dislike of the credit score 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 another added: “I recently paid my mortgage off and instantly lost 150 points off my credit score. What a rubbish system.”

Martin Lewis has previously shared advice on how to improve your credit score.

Tips included registering to vote, never miss or be late on credit repayments, keep your finances separate from your partners, and check the addresses on old accounts.