The ratings agency said an example of new data it would include is rental payments.
The credit score range has also been expanded from 0-99 to 0-1250, which it said would allow a “more granular breakdown of financial behaviour”.
It added that it would recognise positive behaviours that banks and lenders value, such as reducing overdraft use, avoiding credit card cash advances, and making regular payments on rent and phone contracts.
| Excellent 1121-1250 |
You should see the best credit cards, loans and mortgages when you search. |
| Very good 1001-1120 |
You should get most credit cards, loans and mortgages – but you might not get the very best deals. |
| Good 861-1000 |
You should see a wide range of credit cards, loans and mortgages – but you might have to pay a bit more interest. |
| Fair 641-860 |
You might get limited credit options, higher interest rates, and lower borrowing limits. But our tools can help improve your score. And as it grows, so will your choices. |
| Low 0-640 |
Borrowing can be difficult, and interest rates will be high. But our tools can help get your score moving in the right direction. Every increase helps, and things should improve as you get closer to a Fair score. |
Source: Experian
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Clearer insight will be given to customers as to what impacts their score and the effect of different financial habits, which will “make it easier for people to take action and improve financial outcomes”.
Experian said this would be helpful for those looking to improve their score and those with limited history of using credit.
The ratings agency said the new score would not affect someone’s ability to get credit, reiterating that the eligibility for mortgages, loans or credit cards remains the same.
However, the updated credit score “provides 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”.
Experian said the new and improved credit score would be rolling out from November and would be applied to all customers by the end of the year. Existing customers’ scores will be updated automatically and they will be notified of changes via email.
Edu Castro, managing director of Experian Consumer Services for the UK and Ireland, said: “The way people manage their money has evolved, and our score has evolved too. Our new Experian Credit Score better reflects more of the everyday financial behaviours that matter – like paying rent or reducing overdraft use – offering a clearer understanding of the information on your credit report.
“This means people get a more personalised view of how they’re doing financially and more practical ways to improve their score – helping unlock better borrowing opportunities for the future.”
Earlier this year, the firm announced a partnership with Santander to simplify the mortgage application process.
