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's currrent score range of 0 - 999 has expanded 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Errors or outdated information in your report, which are now more visible due to the expanded data assessment.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.

What Should You Do Next?

Check your credit report: Review all details on your Experian, TransUnion and Equifax reports to spot any errors or unfamiliar accounts. Dispute anything suspicious to prevent mistakes from negatively affecting your score.
Don’t panic: Lender decisions rely on a broader view of your financial behaviour, not just the credit score.
Monitor regularly: Use Experian’s free credit monitoring to keep tabs on your score and understand the factors affecting it.
Take positive action: Reduce credit card balances, avoid new credit applications and make payments on time. Positive behaviours are now tracked in greater detail and will help your score recover
Engage with new scoring features: For renters, making timely rent payments may now boost your score. Use these new opportunities to demonstrate financial reliability.

Practical Tips for Recovery

Set up direct debits for at least the minimum payment on all accounts.
Aim to keep your credit utilisation below 30% of your available limit.
Avoid applying for new credit unless necessary.
If you spot a drop due to incorrect information, raise a dispute with the credit agency immediately.
Keep up with changes; Experian will email updates when your new score is available.

Millions may be affected by Experian’s new scoring model, but with attention to detail and responsible financial habits, most people can adapt and keep their credit profile healthyy.