Experian’s update marks a notable shift in how lenders evaluate creditworthiness. For the first time, rent payments and other routine financial actions will contribute directly to an individual’s credit score, potentially altering access to loans and interest rates.
The credit rating landscape is changing in response to evolving financial behaviours. As traditional lending criteria adapt to reflect modern spending patterns, this overhaul could reshape how millions of people in the UK understand and manage their borrowing potential.
New Scoring Model Includes Rent, Overdrafts and Switching Habits
Experian, one of the UK’s three main credit reference agencies, has introduced a major change to its credit scoring system. The update, which is being rolled out from November 2025, will adjust how personal credit scores are calculated, introducing a wider range of financial data including rent payments, mobile phone bills, and overdraft usage.
The overhaul expands the previous 0–999 score range to a new ceiling of 1,250, accompanied by redefined score bands. The terms “poor” and “very poor” have been removed, with red colour coding also scrapped, moves designed to reduce the psychological pressure often associated with low scores. According to Experian, the shift is aimed at giving users “a more accurate and personalised understanding” of their financial standing.
This adjustment means that 44% of consumers are expected to move down a score band, with 42% likely to move up. Roughly 14% will see no change. These movements are not meant to affect borrowing eligibility, according to Experian, but may influence how users interpret their score and take steps to improve it. Importantly, the data used for lending decisions, affordability, existing debts, and lender records, remains unchanged.
The update also recognises “new forms of financial responsibility,” such as reducing overdraft usage, avoiding cash advances on credit cards, and making consistent overpayments on mortgages. As more consumers engage in these behaviours, Experian believes this approach reflects the modern financial landscape more accurately.
Greater Transparency Aims to Help Those With Limited Credit History
A key motivation behind the changes is to support those who have historically struggled to build a credit profile. This includes younger adults, renters, and those who use fewer financial products. By incorporating rental data and everyday payments into credit assessments, the model aims to provide a clearer picture of an individual’s reliability with money, even without a traditional credit history.
According to Eduardo Castro, managing director of Experian Consumer Services for the UK and Ireland, the updated score “better reflects more of the everyday financial behaviours that matter – like paying rent or reducing overdraft use.” He added that this enables a more informed, personalised view of creditworthiness, offering practical ways for individuals to take control of their score.
The rollout will continue through to the end of 2025, with all users receiving automatic updates via email once their profile is transitioned. Free users of the Experian app will have access to the new scoring format, including examples of how various actions impact the score. A more detailed breakdown will be reserved for paid account holders, though all users can still request their full credit report without cost.
While the scoring range has been restructured, Experian has stressed that lenders’ core assessment criteria remain unchanged: namely, affordability (including income and spending), historical credit performance, and any existing relationship with the lender.
