Martin Lewis debunks common credit score myth urging 'don't sweat'

Martin Lewis has dispelled a common myth surrounding credit scores.

On his ITV show, the Martin Lewis Money Show Live, the expert explained that people in the UK do not have an official credit score. While each credit reference agency will give you an individual score, it is not seen by lenders when you apply for credit.

Instead, lenders assess you according to their own criteria. Despite this, it is still vital to regularly check your credit rating; doing so can alert you to any errors or possible fraudulent activity, and give an indication of your creditworthiness.

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The three main credit reference agencies are Experian, Equifax, and TransUnion, reports the Mirror.

Mr Lewis explained: "You do not have a credit score in the UK. There is no single number that dictates if a lender will accept you.

"Each individual lender scores you differently based on its own wish list - not just about risk, but what is a profitable customer?

"The credit reference agencies, the three of them out there, they market a credit scoring tool. Now that is a really useful indicator, but it is just their idea, a rough example, of how a typical lender may look at you. It isn't rock solid. It isn't official."

The MoneySavingExpert.com founder was also quizzed on whether you should be worried by small changes in your credit score. Responding to a viewer called Nigel, who asked why his credit score has dropped a few points, Mr Lewis said small changes like this do not matter.

He said your credit score should only be used as "an indicator" to suggest how lenders will view your financial background. "Do not sweat small changes in your credit score. It is just