TransUnion, one of the UK's three main credit reference agencies, is overhauling its credit scoring system, replacing the previous maximum score of 710 with a new range up to 999. The change, rolling out in stages from late September 2026 to June 2027, will affect how consumers see their credit health, but the company says it will not impact lenders' decisions.
Under the new system, 58% of consumers will remain in the same score band, 36% will move to a higher bracket, and 6% will be demoted to a lower band, according to TransUnion. The bands are colour-coded like traffic lights, with “excellent” at the top and “very low” at the bottom. The bottom two bands, previously called “poor” and “very poor”, have been renamed “low” and “very low”.
What is changing at TransUnion?
TransUnion says the overhaul provides a “clearer and more detailed view of their credit health”. The new score combines how consumers use credit over time with a “moment-in-time view to provide a more considered picture of how consumers manage credit day-to-day”. It draws on more data, including how account balances have changed over time and how credit cards are used.
Madhu Kejriwal at TransUnion says the new score is “clearer, more transparent, informative and better aligned with how lenders view consumers today”. The company emphasises that “the information shared with organisations about an individual's credit history will remain unchanged”, and that “the presence of different scores during the transition will not impact or influence lenders' decisions on credit applications”.
How credit scores work in the UK
In the UK, there is no universal credit score used by lenders or credit reference agencies. Each of the three main CRAs—TransUnion, Equifax, and Experian—has its own system. Equifax scores range from 0 to 1,000, and Experian from 0 to 1,250. Lenders, banks, mobile phone companies, and other businesses check your creditworthiness with any of the three CRAs before you take on debt. They use slightly different models but rely on similar data, such as your history of paying bills, to calculate the score. Your score affects how much you can borrow and the interest rate charged.
Tom Eyre, chief executive of the credit-building platform Loqbox, says changes to scoring systems are not something to worry about. “If a new model moves someone into a lower band, it doesn't mean they have become less creditworthy overnight. Their behaviour and their history are the same. What's changed is how the credit rating agency calculates or presents their score.” He adds: “It's far more important to understand what's in your report and what shapes it, rather than a specific band or number, as it's those pieces of information that credit providers actually look at, alongside their own criteria, when making a decision.”
Changes at Experian and Equifax
Experian rejigged its scoring system last year, increasing the top of its range from 999 to 1,250, and factoring in items such as rental payments for the first time. Experian says its new system “better reflects more of the everyday financial behaviours that matter – like paying rent or reducing overdraft use”. It also gives people a “more personalised view of how they're doing financially, and more practical ways to improve their score”. Experian also removed the “poor” and “very poor” labels and the use of the colour red; its bands are now “excellent”, “very good”, “good”, “fair”, and “low”. After the change, 42% of people saw their score band improve, a similar number recorded a drop, and 14% registered no change.
Equifax changed its score range from 0-700 to 0-1,000 in 2021 and is not thought to be planning another change any time soon. Craig Tebbutt at Equifax says it is important to “make 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.”
What if my score falls?
Small movements in your credit score are not unusual—they can be caused by things such as using a bit more of your credit card limit—and a slight dip is unlikely to affect your ability to borrow. A “low” or “very low” score does not block access to credit, but it may make it harder to obtain and the available options may come with a higher interest rate. John Webb at Experian says that, generally, there is “no need to worry” about small changes, adding: “Your credit score can change regularly as the information on your credit report is updated.”
It is worth keeping an eye on the direction of travel. There are free and paid-for ways to check your score; many high street banks include the feature in their apps. Eyre notes that every credit reference agency is legally required to give you your statutory credit report at no charge, and 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. A steep drop in your credit score is a red flag and should be investigated—it could be something straightforward like the closure of an account after paying off a longstanding credit card bill, or something more serious such as a missed payment or identity fraud.
How to improve your credit score
Start by checking that the information in your credit report is accurate, and check all three credit reference agencies, as Eyre says no single one gives you the whole picture: “They don't all hold exactly the same information about a person, because lenders and other providers may report to one, two or all three – and some lenders lean on a particular agency when assessing applications.”
Experian's guide to improving your credit score 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. Tebbutt says that if you already have a lot of credit available—for example, several credit cards or a large overdraft—lenders may take this into account, and you should think about closing accounts you do not use. He also advises being careful when applying for credit: “Every time you formally apply for credit, it leaves a 'hard search' on your credit report. Try to space out your applications, and only apply for credit you need.” Finally, review your financial associations: if you have a joint bank account or mortgage with someone, you are “financially associated” with them, and if their credit history isn't great, it could affect your own application.
