Experian has announced a major revamp of its credit scoring model aimed at “better reflect[ing] how credit applications are assessed.”
The updated system will now factor in new types of data such as rent and mobile phone payments, allowing “more of the positive financial behaviours people demonstrate in everyday lives” to be considered.
The maximum score has been lifted from 999 to 1,250, though Experian confirmed that “the new score will not affect a person’s ability to get credit – eligibility for mortgages, loans, or credit cards remains the same.”
The changes will begin rolling out in November, with all customers expected to see the update by year end. Existing users will automatically receive their revised score and an email notification once it becomes available.
Edu Castro, managing director of Experian Consumer Services, explained: “The way people manage their money has evolved, and our score has evolved too. Our new Experian Credit Score better reflects more of the everyday financial behaviours that matter, like paying rent or reducing overdraft use, offering a clearer understanding of the information on your credit report.
“This means people get a more personalised view of how they’re doing financially and more practical ways to improve their score, helping unlock better borrowing opportunities for the future.”
As part of the overhaul, Experian has restructured its scoring bands. The new categories are Low, Fair, Good, Very Good, and Excellent, replacing the previous Poor, Fair, Good, Very Good, and Exceptional labels.
New Experian Score Bands
| Rating | Score Range | Description |
|---|---|---|
| Excellent | 1121–1250 | Access to the best mortgage, loan and credit card offers. |
| Very Good | 1001–1120 | Likely to be approved for most credit products but not necessarily the top deals. |
| Good | 861–1000 | Broad range of options, though potentially at slightly higher interest rates. |
| Fair | 641–860 | Fewer choices and higher interest costs. |
| Low | 0–640 | Credit may be hard to obtain, with steep borrowing rates. |
The announcement coincides with a public appeal to government from the Financial Freedom for Everyone campaign, backed by The Money Charity and the Consumer Credit Trade Association (CCTA), urging reforms to make credit fairer for renters.
Jason Wassell, CEO of the CCTA, stated: “For too long, renters have been disadvantaged simply because their most significant monthly expense isn’t usually recognised. With the Treasury reviewing the Consumer Credit Act and preparing a National Financial Inclusion Strategy, now is the time to close that gap.
“We do not underestimate the complexity of this issue. It is not just about adding data to files; it is about building on existing work in this area, understanding where we might see unintended consequences. Just as importantly it is about how lenders themselves will use that information or be allowed to use that information.”
Currently, rent payments can only count toward a credit score if a landlord or letting agent participates in a rent reporting scheme. Many do not, meaning tenants must instead register with third-party services that report payments directly to agencies such as Experian.
According to Experian, the changes aim to offer “clearer insight into what affects a person’s credit score” and to show “how much of an impact different financial habits have.”
