Experian Credit Score Shake-Up: Millions Face Dropping Scores Overnight

"New 0–1250 Scoring System Includes Rent and Everyday Financial Habits, Offering a Clearer but More Challenging Picture of Your Credit Health"

Experian has launched major changes to its UK credit scoring system, resulting in millions of people seeing their score drop. This shift is designed to offer a more detailed and accurate assessment of financial habits, but the initial impact may be unsettling for many consumers as their scores change overnight.

What’s Different About Experian’s New Credit Score?
Experian has expanded its score range from 0–999 to 0–1,250. The new system takes into account a wider variety of everyday financial behaviours, such as rental payments and regular payments on phone contracts, as well as the more traditional measures like credit card and loan usage. The company says this will help people—including those with limited credit history—get a more personalised and practical view of their financial standing.

Who Is Affected and How?

• Over 40% of users are likely to drop down a score band following the change, with 42% expected to move up and 14% staying the same.
• These changes affect everyone with an Experian credit file in the UK. Existing customers will have their score automatically updated and notified by email.
• Although scores are fluctuating, Experian insists eligibility for credit, mortgages, or loans will not be directly affected by this update and that lenders will still assess you using their own criteria. 

Why Has My Credit Score Gone Down?
There are a few reasons your score may have dropped in this update:

• The new scoring system now reflects more granular financial behaviour, so minor changes—like increased overdraft use or missed rental payments—may have a bigger impact than before.
• Errors or outdated information in your report, which are now more visible due to the expanded data assessment.
• Temporary fluctuations are common, especially during periods of higher credit utilisation.