Experian UK&I is introducing what it claims is an improved credit score that better reflects how credit applications are assessed, giving consumers a clearer picture of their overall borrowing potential and “more ways to improve their score.” The updated score includes new data, such “as rental payments, taking into account more of the positive financial behaviors people demonstrate in their everyday lives that banks and lenders are using.”
The score range has been expanded from “0–999 to 0–1250, allowing for a granular breakdown of financial behavior.” This change helps users understand how banks and lenders “interpret their credit report and what actions can positively impact their score.”
The model recognizes behaviors that banks and lenders tend to value – such as reducing overdraft use, “avoiding credit card cash advances, and making regular payments on rent and phone contracts.”
As part of the offering, Experian will give consumers insight into what affects their score and “how much of an impact financial habits have – this will make it easier for people to take action and improve financial outcomes.”
These changes are helpful for people looking to improve their score and are also said to be particularly “helpful for those with a limited history of using credit, helping support better financial inclusion.”
Notably, the new score will not affect someone’s “ability to get credit.” As clarified in the update, eligibility for things “like mortgages, loans, or credit cards remains the same.”
The updated score aims to provide a more detailed view of people’s financial track record and the new information that banks and lenders “have started using, offering new ways to strengthen it over time.”
When people make an application, a lender will usually look at several key things / data points:
- Affordability – this includes the information on their application form, including income, employment status and expenditure
- Their credit report & score – how they’ve managed credit in the last six years
- The lender’s own records – if they’ve been a customer with that lender before
The improved Experian Credit Score will now aim to help consumers get an even better understanding of how banking institutions and lenders try to assess their credit information.
The new score will begin being rolled out from November and will now aim to reach all UK customers by the end of 2025. Existing clients will see their score automatically updated during this period and will “receive an email once their smarter Experian Credit Score is available.”