Paying your rent punctually may soon enhance your prospects of acquiring a credit card or mortgage. Experian is revising its credit scoring system to consider more positive financial behaviors demonstrated in daily life. Apart from rent payments, credit scores will now reflect reduced overdraft usage, avoidance of credit card cash advances, and consistent phone contract payments.
Opting in for rental payment inclusion is necessary, with missed payments negatively impacting your score. The new scoring model will expand from a range of 0–999 to 0–1,250, eliminating “poor” and “very poor” categories in favor of new labels like Excellent, Very Good, Good, Fair, and Low.
Over 40% of individuals are likely to shift score bands due to the revised scoring, but eligibility for credit products such as mortgages and loans will remain unaffected. Experian will provide guidance for those in lower score bands to improve their credit standing.
The updated score will begin implementation in November and reach all customers by year-end. It is important to note that the UK lacks a universal credit scoring system, with Experian, Equifax, and TransUnion each utilizing distinct scoring methods. Lenders typically consider multiple credit agencies and financial information, like income, when assessing creditworthiness.
Edu Castro, Experian’s Managing Director for Consumer Services in the UK & Ireland, emphasized that the new credit score reflects modern financial habits, offering a personalized view to help individuals enhance their financial standing and access better borrowing opportunities in the future.
