US EditionCredit scores to include rental payments, says Experian
Experian's updated UK credit scores include rent and daily payments, changing scoring bands and affecting 86% of customers, with the maximum score raised to 1250.
- This month, Experian, one of the UK's main credit agencies, will include rental payments in credit records and raise the top score to 1250.
- Experian says the change reflects more everyday financial behaviours, including paying rent, reducing overdraft use, reviewing mobile phone contracts and switching, while tenants must opt in for rent reporting.
- New scoring bands ditch 'poor' labels and the colour red, renaming them Excellent, Very Good, Good, Fair and Low, while 44% of customers may drop a band and 42% could rise.
- Affected borrowers will get guidance, and those missing rent payments may see adverse effects, but Experian said eligibility for mortgages, loans and credit cards remains unchanged.
- Lenders are increasingly factoring positive rent history into lending decisions, and Experian says this could help on-time renters if they opt in as part of broader data updates soon.
5 Articles
5 Articles
Experian to include rental payments in credit score under major overhaul
More than 40% of people are set to drop down a score banding after the changes, but Experian said it will not affect lending eligibility. Borrowers will see their credit score take account of rental payments for the first time under a major overhaul being rolled out by Experian to better reflect how credit applications are assessed by lenders. The changes will see Experian offer a more detailed view of information on credit reports and ways to i…
Experian UK&I Launches Smarter Credit Score to Give Consumers Sharper Insight and More Ways to Improve
Experian UK&I is introducing a new and improved credit score that better reflects how credit applications are assessed, giving people a clearer picture of their borrowing potential and more ways to improve their score. The updated score includes new data, such as rental payments, taking into account more of the positive financial behaviours people demonstrate in their everyday lives that banks and lenders are now using.
Major shake-up to UK credit scores as Experian adds rental payments
New scoring system affects millions of borrowers across Wales and the UK A MAJOR overhaul of the way credit scores are calculated is being rolled out this month, with Experian announcing sweeping changes to how lenders assess borrowers. For the first time, rental payments will be included in credit score calculations, meaning tenants who consistently pay rent on time could see an improvement to their overall score. The update is part of Experian…
Experian to include rent payments in credit scores
FTSE 100 giant Experian has announced plans to include rental payments in a major revamp of the formation of credit scores. The agency said it was overhauling its scoring system to better reflect “more of the everyday financial behaviours that matter” which included things “like paying rent or reducing overdraft use”. It follows a warning by The Financial Freedom for Everyone campaign, arguing that millions of renters were being locked out of ho…
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