Keep seeing loads of adverts for these on the T/V. What the hell are they all about and what good do they do? Asked my kids (they are all in their 50s) and they weren,t really sure. Can any of you world wise buggers on here enlighten me.
I'll try to keep it simple:
Credit reference agencies hold all of your financial information. When you apply for a product, (mortgage, loan, credit card, etc) the lender accesses the information in your credit files to see if you are creditworthy, amongst other things.
To monetise this information, credit reference agencies have start inventing magical numbers. The higher your 'score' the better your chances. In fact, they'll even suggest which credit cards you might be eligible for....and take a backhander if you're application is successful.
Lenders cannot see this magic number, only you can. In other words, it has no bearing on any lenders decision. They are a con.
Hope that was short enough.