{"id":770324,"date":"2026-09-14T11:54:29","date_gmt":"2026-09-14T11:54:29","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/770324\/"},"modified":"2026-09-14T11:54:29","modified_gmt":"2026-09-14T11:54:29","slug":"uk-credit-scores-should-you-worry-about-a-big-shake-up-borrowing-debt","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/770324\/","title":{"rendered":"UK credit scores: should you worry about a big shake-up? | Borrowing & debt"},"content":{"rendered":"

Your credit score is the magic number that helps lenders decide whether or not to approve a mortgage, loan or credit card application.<\/p>\n

Typically, the higher the number, the better your borrowing prospects. But a shake-up of the scoring system at TransUnion, one of the UK\u2019s three main credit reference agencies, could mean a shock next time you log in.<\/p>\n

Previously, TransUnion\u2019s top score was 710, but later this month it will start rolling out a wider range, rating you out of 999.<\/p>\n

And while the change means tens of thousands of people will be promoted to a higher band (bands are colour-coded like traffic lights, with \u201cexcellent\u201d at the top and \u201cvery low\u201d at the bottom), others will be demoted and find they have slipped down a rung.<\/p>\n

The good news, though, is that even if your \u201cscore banding\u201d changes, the underlying information held on your credit file will remain the same, and that is what lenders use to decide the outcome of an application \u2013 so credit decisions and approvals will\u00a0not be affected, says the company.<\/p>\n

In the UK there is no \u201cuniversal credit score\u201d that is used by lenders\u00a0or credit reference agencies\u00a0(CRAs). Each CRA has its own system: the other two main ones in the UK are Equifax and Experian. At Equifax your credit score is between 0 and 1,000, and at Experian it\u2019s 0 to 1,250.<\/p>\n

In the UK there is no \u2018universal credit score used by lenders or credit reference agencies. Photograph: Izel Photography\/RFC1\/AlamyWhat is my score?<\/p>\n

It is a number calculated based on your credit history. That is, it\u2019s a measure of how likely you are to repay your debts on time.<\/p>\n

Before you can take on any kind of debt \u2013 and for other purposes, too \u2013 banks, mobile phone companies and other businesses will check your creditworthiness with any of the three CRAs. They\u00a0all\u00a0use slightly different models, but rely on similar data, such as your history of paying bills, to calculate the score. Those in the top bands are considered a more reliable prospect for lenders, with your score also affecting how much you can borrow and the rate of interest charged.<\/p>\n

What is TransUnion doing?<\/p>\n

Previously, its top mark was 710, but this month it will start rolling out the new system that scores you from 0 to 999.<\/p>\n

TransUnion says the overhaul gives consumers a \u201cclearer and more detailed view of their credit health\u201d.<\/p>\n

It claims it is \u201cmore than a new number range\u201d as it combines how consumers use credit over time, with a \u201cmoment-in-time view to provide a more considered picture of how consumers manage credit day-to-day\u201d.<\/p>\n

TransUnion has changed its credit score rankings. Its previous top mark was 710, not its 999. Photograph: SOPA Images Limited\/Alamy<\/p>\n

The new score draws on more data, including how account balances have changed over time, and how credit cards are used.<\/p>\n

The\u00a0company has also changed some of its terminology. The bottom two bands used to be called\u00a0\u201cpoor\u201d and \u201cvery poor\u201d but have been renamed \u201clow\u201d and \u201cvery low\u201d.<\/p>\n

TransUnion says most people (58%) will remain in the same score band, while 36% will be boosted to a higher bracket, and 6% will move down a bracket.<\/p>\n

Madhu Kejriwal at TransUnion says its new score is \u201cclearer, more transparent, informative and better aligned with how lenders view consumers today\u201d.<\/p>\n

TransUnion credit scoring table<\/a><\/p>\n

The new system is being rolled out in stages between late September and June 2027. As a result, some consumers may briefly\u00a0see two different scores, depending on the app or provider they use, and when it adopts the new model.<\/p>\n

Even if your score ends up looking worse, TransUnion says that\u00a0nothing about your underlying credit report will have\u00a0changed \u2013 only the number that you see.<\/p>\n

Tom Eyre, the chief executive of credit-building platform Loqbox, says don\u2019t fret if a new model moves you into a lower credit band \u2013 \u2018it doesn\u2019t mean you have become less creditworthy overnight\u2019. Photograph: Panther Media GmbH\/Alamy<\/p>\n

TransUnion says: \u201cThe information shared with organisations about an individual\u2019s credit history will remain unchanged.<\/p>\n

\u201cAs a result, the presence of different scores during the transition will not impact or influence lenders\u2019 decisions on credit applications.\u201d<\/p>\n

Tom Eyre, the chief executive of the credit-building platform Loqbox, says the changes to scoring systems are not something to worry about. \u201cIf a new model moves someone into a lower band, it doesn\u2019t mean they have become less creditworthy overnight. Their behaviour and their history are the same. What\u2019s changed is how the credit rating agency calculates or presents their score.\u201d<\/p>\n

Eyre adds: \u201cIt\u2019s far more important to understand what\u2019s in your report and what shapes it, rather than a specific band or number, as it\u2019s those pieces of information that credit providers actually look at, alongside their own criteria, when making a decision.\u201d<\/p>\n

What about Experian and Equifax?<\/p>\n

Experian rejigged its scoring system <\/a>last year, increasing the top\u00a0of\u00a0its range from 999 to 1,250, and factoring in items such as rental payments for the first time.<\/p>\n

Equifax changed its score range\u00a0from 0-700 to 0-1,000 in 2021 and is not thought to be planning another change any time\u00a0soon.<\/p>\n

Experian has also upped its highest score, from 999 to 1,250. Photograph: Ascannio\/Alamy<\/p>\n

Experian says its new system \u201cbetter reflects more of the everyday financial behaviours that matter \u2013 like paying rent or reducing overdraft use\u201d.<\/p>\n

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It also gives people a \u201cmore personalised view of how they\u2019re doing financially, and more practical ways to improve their score\u201d, the company says.<\/p>\n

Experian also got rid of the \u201cpoor\u201d and \u201cvery poor\u201d labels, as well as the use of the colour red. Its bands are now called \u201cexcellent\u201d, \u201cvery good\u201d, \u201cgood\u201d, fair\u201d and \u201clow\u201d.<\/p>\n

After the change, Experian says 42% of people saw their score band improve, and a similar number recorded a drop, while 14% registered no change.<\/p>\n

Experian has got rid of its \u2018poor\u2019 and \u2018very poor labels. Photograph: Samantha Craddock\/AlamyWhat if my score falls?<\/p>\n

Small movements are not unusual \u2013 they can be caused by things such as the fact you\u2019ve used a bit more of your credit card credit limit \u2013 and a slight dip is unlikely to affect your ability to borrow.<\/p>\n

Also, remember that a \u201clow\u201d or \u201cvery low\u201d score does not block access to credit. It may make it harder to obtain, though, and the available options may come with a higher interest rate.<\/p>\n

John Webb at Experian says that, generally, there is \u201cno need to worry\u201d about small changes.<\/p>\n

\u201cYour credit score can change regularly as the information on your credit report is updated,\u201d he adds.<\/p>\n

Equifax says paying back what you owe in full and on time shows lenders you are able to manage your finances, which supports your overall credit health. Photograph: M4OS Photos\/Alamy<\/p>\n

It is worth keeping an eye on the direction of travel, and there are lots of free, and paid-for, ways to check your score \u2013 many high street\u00a0banks include the feature in their apps.<\/p>\n

Eyre says each agency works out its own score from the information it holds, but \u201cit\u2019s the credit file that gives you the detail behind it, such as your accounts, payments and searches\u201d.<\/p>\n

He explains: \u201cEvery credit reference agency is legally required\u00a0to give you your statutory\u00a0credit report at no charge,\u00a0and services such as ClearScore, Credit Karma and the Experian app will show a score, and often basic credit report insights, for free, although you might need to pay to access some additional features.\u201d<\/p>\n

A steep drop in your credit score is a red flag and you should investigate. It could be something straightforward such as the\u00a0closure\u00a0of an account after paying off a longstanding credit card bill, or something more serious, such as a missed payment or identity fraud.<\/p>\n

How can I improve my credit score?<\/p>\n

Start by checking that the information in your credit report is accurate.<\/p>\n

You need to check all three credit reference agencies as Loqbox chief executive Tom Eyre says no single one gives you the whole picture. \u201cThey don\u2019t all hold exactly the same information about a person, because lenders and other providers may report to one, two or all three \u2013 and some lenders lean on a particular agency when assessing applications.\u201d<\/p>\n

Experian\u2019s guide to improving your credit score<\/a> advises using 30% of your credit card limit, registering on the electoral roll (this helps lenders verify your identity), avoiding new applications for credit unless needed, and keeping up to date with minimum payments.<\/p>\n

Using 30% of your credit card limit can help boost your credit score, says Experian. Photograph: Realimage\/Alamy<\/p>\n

Craig Tebbutt at Equifax says it is important to \u201cmake full repayments on time. Missed payments go on your credit report. Paying back what you owe in full and on time shows lenders you are able to manage your finances, which supports your overall credit health.\u201d<\/p>\n

Tebbutt says that if you already have a lot of credit available \u2013 for example, several credit cards or a large overdraft \u2013 lenders may take this into account.<\/p>\n

Also think about closing accounts you do not use.<\/p>\n

You should also \u201cbe careful when applying for credit\u201d, says Tebbutt. \u201cEvery time you formally apply for credit, it leaves a \u2018hard search\u2019 on your credit report. Try to space out your applications, and only apply for credit you need.\u201d<\/p>\n

Finally, review your financial associations: if you have a joint bank account or mortgage with someone, you are \u201cfinancially associated\u201d with them. If their credit history isn\u2019t great, it could affect your own application.<\/p>\n","protected":false},"excerpt":{"rendered":"Your credit score is the magic number that helps lenders decide whether or not to approve a mortgage,…\n","protected":false},"author":2,"featured_media":770325,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[84,59,56,54,55],"class_list":["post-770324","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-gb","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/770324","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=770324"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/770324\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/770325"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=770324"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=770324"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=770324"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}