Experian is overhauling its UK credit scoring system by the end of the year to provide a more accurate and transparent reflection of consumers’ financial behavior. The update responds to pressure from banks, regulators, and industry competition, incorporating modern data such as Buy Now Pay Later (BNPL) usage, payment consistency, spending trends, and stability factors like address and account age. Unlike the decade-old model, the new score aligns more closely with how lenders currently assess creditworthiness, aiming to reduce confusion and mistrust among consumers.

This revamped scoring system will not affect ongoing credit applications but may cause individual scores to rise or fall. It offers users clearer insights into what influences their rating and how to improve it, emphasizing transparency as urged by the Financial Conduct Authority. Overall, the change reflects the evolving financial landscape, ensuring credit scores better mirror real borrowing habits and provide fairer, more realistic guidance for consumers and lenders alike.