Credit reference agency Experian will soon update its credit score system, moving from a maximum score of 999 to a new scale out of 1,250. This change is set to roll out starting mid-November, with all users transitioned by the end of the year.
While your Experian credit score may shift due to this update, the underlying information on your credit file will remain the same. According to MoneySavingExpert, it is the actual data in your credit report, not the score, that lenders rely on when deciding whether to grant credit.
Experian expects approximately 44% of users to see their score band drop (for example, from "Excellent" to "Very Good"), while about 42% will see an increase to the same or a higher band. Along with the scoring change, the "bands" that label your score are being adjusted. Notably, Experian is removing the "poor" bands to avoid discouraging users.
"More than four in 10 of its users (44%) will see their score band drop as a result of the changes (for example, from 'Excellent' to 'Very good'), while roughly the same proportion (42%) will see a higher score and the same or a higher band." – Experian announcement
Experian is one of the UK's three main credit reference agencies, alongside Equifax and TransUnion.
Author's summary: Experian's credit score update changes the scoring scale and labels but leaves the core credit file data intact, which remains key for lenders' decisions.