For millions of Britons, a major shake-up is coming to how their financial trustworthiness is measured. Experian, one of the UK’s three main credit reference agencies, has announced that it will begin including rental payments in its credit scoring system for the first time—a move that experts say could substantially alter the financial prospects of renters nationwide.
The overhaul, which began rolling out in November 2025 and is expected to reach all UK customers by the end of the year, is more than just a tweak to the numbers. According to Experian, the maximum possible credit score will expand from 999 to 1,250. Alongside this, the agency is ditching the traditional scoring categories of “poor” and “very poor,” as well as the color red, in favor of the less stigmatizing labels Excellent, Very Good, Good, Fair, and Low. The aim? To make credit reporting less distressing and more constructive for those trying to build or repair their financial standing—especially renters.
“The way people manage their money has evolved, and our score has evolved too,” said Edu Castro, managing director of Experian consumer services in the UK and Ireland, in a statement reported by BBC. “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 change is particularly significant for the UK’s growing population of renters, who have historically struggled to demonstrate their reliability to lenders due to a lack of mortgage history. Now, tenants who consistently pay their rent on time will be able to opt in and have these payments counted toward their credit score. As Experian explained, “Great news for renters who are paying on time, every month.” However, there’s a catch: missing rental payments will have a negative effect, just like missing a credit card or loan repayment.
The new model doesn’t stop at rent. It also takes into account a broader range of financial behaviors that banks and lenders increasingly value. These include cutting back on overdraft use, avoiding cash advances on credit cards, making mortgage overpayments, and a more detailed look at regular payments on mobile phone contracts—including how often a customer switches providers. According to The Guardian, these changes are meant to “give people a clearer picture of their borrowing potential and more ways to improve their score.”
For many, though, the most immediate impact will be a shift in their credit score band. With the expanded scale and updated methodology, Experian estimates that 44% of people are likely to drop down a score band, while 42% will move up, and 14% will remain in the same band. The company has been quick to reassure consumers that these changes “will not impact on someone’s ability to get credit,” and that eligibility for mortgages, loans, or credit cards remains unchanged. Instead, the adjustment is intended to provide a more accurate and nuanced assessment of financial behavior.
Borrowers won’t have to do much to see the effects. Experian will automatically update and email existing customers their new scores once available. Those using the free app and credit score service will be able to access the new features, including examples of how different financial behaviors influence scoring. For those seeking even more detail, a paid-for service offers a more personalized assessment. Crucially, all borrowers can still access their full credit report for free.
So, what does this mean for the average consumer? For starters, people with limited credit history—often younger adults, new arrivals to the UK, or those who have avoided traditional forms of debt—could see their credit prospects improve. By including rent and other everyday financial commitments, Experian’s system aims to reward positive behaviors that previously went unrecognized. As Castro put it, “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.”
But there’s nuance here. According to BBC, tenants must actively opt in for their rental payments to count toward their credit score, and the system will only work if landlords or letting agents report these payments. That means some renters may need to take additional steps to ensure their positive payment history is recognized. Moreover, while the changes are designed to be fairer, those who miss rent payments could find themselves penalized more quickly—a double-edged sword for those already struggling with the cost of living.
It’s also important to note that these changes apply only to Experian’s scoring system. The UK has two other main credit reference agencies—TransUnion and Equifax—whose scoring methods are unaffected by this announcement. That means a renter’s improved score with Experian might not immediately translate to better results with other agencies, though lenders often check multiple reports when assessing applications.
For lenders, the revamped system offers a more comprehensive picture of a borrower’s financial life. When someone applies for credit, banks typically consider three main elements: affordability (including income, employment status, and expenditure), the applicant’s credit report and score (reflecting how they’ve managed credit over the past six years), and the lender’s own records (such as previous dealings with the customer). By expanding the data considered, Experian hopes to help lenders make more informed decisions—potentially opening doors for those who have previously been overlooked.
Still, the new bands and expanded range may take some getting used to. The shift from a maximum score of 999 to 1,250, and from five old bands to five new ones, could be confusing for some. To ease the transition, Experian has provided guidance for those in the lowest band, offering clear steps to help them move up. And while the removal of the stigmatizing “poor” and “very poor” labels is being welcomed by consumer advocates, some critics argue that it’s the underlying economic pressures—rising rents, stagnant wages, and a challenging housing market—that need more attention than the color of a credit report.
For now, though, the message from Experian is one of empowerment. By recognizing rental payments and a wider array of financial behaviors, the agency says it’s giving consumers more control over their financial destiny. Whether this will lead to a fairer, more inclusive credit system remains to be seen, but for renters and those with thin credit files, it’s certainly a step in a promising direction.
As the rollout continues through the end of 2025, all eyes will be on how these changes play out in practice—and whether other agencies and lenders will follow suit.
