Martin Lewis: How credit scoring works – a quick game to explain…

[davidgray]

Bro you nearly gave me a heart attack with IN FULL.

[DavidDarnes]

Martin saying "IN FULL" scared the sh*t out of me 😂

[ARossInLondon]

Made me jump in my chair with the 'IN FULL'.

[kristinesharp]

In the 90’s US they were giving stuff to university students to apply for credit cards. My parents were floored as they had the same trouble to get a credit history to get a card but could not build a credit history as Mr Lewis described. I think they managed a gas station card eventually. I think it got people into trouble but I remember the credit limits being $500-$$1000. Not horrible. Students were already taking out many thousand in loan for tuition and sometimes room and board.

[suewright]

Oh my giddy aunt Gert, Martin, you frightened the life out of me with your IN FULL 😮😮 I always expect it on your shows, but certainly didn’t then!
Anyway, getting back to the video, I’m sure you will have got the message across, in fact I’m sure hubby & I will be paying everything IN FULL in future!
Very many thanks indeed Martin, you’re a 💎

[justine]

You frightened the frigging life out of me!!

[EverydayLife]

The biggest threat to your credit score is not how you manage your debts, borrow money etc., but private parking companies who try every trick in the book to make you pay, and use old addresses etc., to try and get a default CCJ (whereby you receive absolutely no correspondence, yet the apply to the count court for a default CCJ – apparently they get about a million of these a year and use court loop holes (as you cannot amend your address – only the parking company) – it’s a national scandal

[Cornwall]

Real world example for those wondering like I was at the end of last year, my credit score went from about 550 to 800 in a few months just by getting a 0% credit card and using it to buy fuel and pay for car services etc

I only use it to buy stuff I’d absolutely have to buy anyway and pay it off in full via direct debit

[workinprogresssince]

Credit scores are hopelessly flawed. Renters are excluded from having their monthly payments included and the self employed and those with low incomes but high savings also struggle. It's not necessarily a good gauge. I have a good score but I can't get a rental agreement because I am self employed and my squeaky clean renting history doesn't count.

[buttercups]

Anyone watching this with headphones in, be careful when you reach 2.39 😅. I pooped myself 🙈

[kristinesharp]

In full is the key. When you don’t it takes extra months to finish all the interest. In US it is calculated interest as you go. For gasoline credit is the best way to pay out the card in. Pump. It’s done. You don’t hold the line up going in and out. You usually know how much it will be every month as well. Easy enough to track. And there are things you just need a card for. Hotel for instance. A car repair. In the US medical bill. In a year the $50 item you will have spent $60 on. Why pay 20% or more more than the actual item or service?

[worldofrandometry]

The only thing I've ever borrowed for was a mortgage and that was paid off many years ago. Now I have difficulty when I even want to transfer my cash ISA to another building society. They can never 'verify my identity'. Infuriating.

[steveb]

Martin, Start a campaign to get the 5% VAT taken off energy bills please.

[arian]

Please give WARNING at the beginning of this video maestro..☝️😄...my heart rate went up " IN FULL " and i could have a sudden heart attack for just trying to save some pennies my friend...☝️🤪😂

[potatochipping]

Hello. I'm hoping to get some guiidance on a rejected credit card application. I recently applied for a pre-approved credit card having excellent credit card rating and assessed affordability as being very good by exerian and then got rejected. Contacted the company and they cannot give me any information as to why my application was rejected. How do I fix this? Thanks in advance.

[MichaelJacksonFromSega]

Oh man! Thanks for the explanation and a stain on my pants! We're helpful🎉😄

[ashredfern]

His dog must of bite him at that point he said in full 🤣 but like a proffessional he powered on regardless of the fact he is now missing a foot. Btw if your young living at home, buying your first car, even if you can afford to pay for it out right, dont take a loan with low interest or zero if you can and pay it over a year or two instead.. that will help put you on the radar. Similarly buying furniture etc any zero interest loans just do that.. hell I own my house and car but I'll still do monthly payments if I get a good deal, there is no finish line on credit scoring.

[TKGriffiths]

No more jump scares please I got some funny looks at work!

[dianepaterson]

That's fine, but what if you are on universal credit and can't do this.

[carlconner]

Never make debt you can never pay back