MARTIN Lewis has revealed why you should stop worrying about your credit score.

This number is used by lenders for products like mortgages, loans, and credit cards to decide if you’re eligible.

Martin told viewers not to "sweat" small credit score changes but to be aware of any big ones

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Martin told viewers not to “sweat” small credit score changes but to be aware of any big onesCredit: ITV

But Martin said in the latest episode of the Martin Lewis Money Show Live: “Credit scoring predicts your future behaviour based on your past.

“So if you don’t have a history of credit you can’t get credit.”

But nobody has a universal credit rating or score.

This is because there are three main credit reference agencies that compile your score – Experian, Equifax and TransUnion.

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Each lender also scores your eligibility to borrow on its individual profitability wish list, and lenders use information from three different sources to assess you.

So, your credit score is a loose indication of a typical lender’s view.

Martin told viewers not to “sweat” small credit score changes but to be aware of any big ones.

He also warned viewers that you can still be rejected from borrowing even if you have a perfect credit score.

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This is because credit scores don’t contain your income status, so lenders do affordability scoring on top of assessing your credit file.

How can I boost my credit score?

There are a number of free and cheap ways to help boost your credit score.

For example, getting on the electoral register proves who you are and where you live, meaning it’s easier to get credit if you’re on the list.

For Experian, being signed up to this can get you 50 points and it usually feeds through to your credit report in about a month.

It only takes a few minutes, and you can do it through your council’s website.

You can sign up by registering to vote on Gov.UK.

It’s also vital that you don’t make too many credit applications because lots of requests in a short period of time can be seen as a sign of financial distress.

Use a “soft-search” eligibility calculator to show how likely you are to be accepted – websites like MoneySavingExpert.com offer these.

You should always pay your bills on time. This is because late payments are also recorded in your file.

If you can, try to cut down your existing debt before applying for new credit, as lenders may be reluctant to lend to you if you already have a large amount of debt.

Using credit-builder credit cards for small, affordable purchases can show that you’re a responsible spender, and it can improve your chances in the eyes of lenders.

It’s vital to ask yourself if you actually need to borrow before committing to a new credit card or personal loan.

If you cannot afford to pay off a current debt, you should avoid taking out any more debt at all costs.

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For Experian, being signed up to this can get you 50 points and it usually feeds through to your credit report in about a month.

It only takes a few minutes and you can do it through your council’s website.

This post first appeared on thesun.co.uk

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