TransUnion, one of the UK’s three principal credit reference agencies, is implementing a significant overhaul of its credit scoring methodology. The transition, which began later this month and will continue through June 2027, shifts the scoring range from a maximum of 710 to a scale of 0 to 999. The company states this expansion provides consumers with a clearer understanding of their credit health by incorporating additional data points and offering a more comprehensive assessment of creditworthiness over time.
According to TransUnion’s projections, approximately 58% of consumers will remain within their current score band following the transition. However, 36% are expected to be elevated to higher brackets, while 6% will move to lower ones. The company has also refined its terminology, renaming the two lowest bands from “poor” and “very poor” to “low” and “very low.” TransUnion emphasizes that the underlying credit file information will remain unchanged, with lenders continuing to base their decisions on the actual data rather than the numerical score itself.
The new scoring model incorporates expanded criteria, including historical changes in account balances and patterns of credit card usage, alongside traditional factors such as payment history. During the rollout period, some consumers may temporarily see different scores depending on which provider or application they access, as adoption occurs incrementally across the industry.
Other UK credit reference agencies have undertaken similar modernizations. Experian modified its system previously, expanding its range from 999 to 1,250 and beginning to include rental payment history. Equifax transitioned to a 0-1,000 scale in 2021. Industry experts advise that scoring band changes do not necessarily reflect reduced creditworthiness, as the underlying behavioral and historical factors remain constant. Minor score fluctuations are considered normal and typically do not impede borrowing capacity, though lower scores may result in less favorable interest rates.
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