TransUnion, one of the UK’s three principal credit reference agencies, is implementing a significant overhaul of its credit scoring methodology. The company is transitioning from its previous maximum score of 710 to a new scale ranging from 0 to 999, with the rollout beginning later this month and continuing through June 2027.
According to TransUnion, the revised system provides consumers with a more comprehensive assessment of their credit health by incorporating additional data points and offering a more granular view of how individuals manage credit over time. The company has stated that the new scoring model combines historical patterns of credit usage with current financial behaviour, drawing on information such as account balance fluctuations and credit card utilization patterns. The terminology for the lowest score bands has also been adjusted, with the former “poor” and “very poor” designations replaced by “low” and “very low.”
TransUnion projects that approximately 58% of consumers will maintain their current score band following the transition, while 36% are expected to move to a higher bracket and 6% to a lower one. Importantly, the company has emphasized that the underlying credit file information used by lenders to make borrowing decisions will remain unchanged. During the transition period, some consumers may observe two different scores depending on their provider’s adoption timeline, but TransUnion states this variation will not influence lender decisions.
The UK credit market features three major reference agencies, each operating independent scoring systems. Equifax currently uses a 0-1,000 scale following a 2021 adjustment, while Experian recently increased its maximum score to 1,250 and expanded the data it considers, including rental payment history. Experts suggest that minor score fluctuations are routine occurrences reflecting updated credit information and are unlikely to significantly impact borrowing prospects. Financial professionals recommend focusing on understanding the underlying credit report contents rather than concentrating on specific numerical scores or bands.
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