No, no no no. Not at all, this is utter bollocks and shows her lack of genuine understanding & experience & tbh it's probably more damaging for low income families to say this shit rather than empowering people to try to manage their credit profiles well?? Your credit rating doesn't really matter in this country as each bureau calculates it differently & each lender has diff criteria, but your report is basically a 6-year view back (outside of anything mega like a bankruptcy) and her benefits history is so far in the past, it won't even be contained within that. Obviously if she was still paying down a huge credit card or loan, it would report on that, but if you've got money for Cotswold Company & multiple phones then that stuff should all be handled years ago now so would have very little impact? You can build good credit from negative/nothing in a few years easy.
If she claims it's because of her haphazard income streams that's also a lie, I'm happy to go into edge case lending if it's relevant to anyone cos we went through that hell ourselves (it's not that bad tbh, like I clocked how privilege is SO real when it comes to money going through that whole process). But fundamentally she's clearly incapable of budgeting or saving for anything, probs waiting to inherit the empire init !