Experian Expands Credit Score Range and Includes Rent Payments
Experian is overhauling its credit scoring system for the first time in decades. Starting November 2025, rental payments will be incorporated into credit scores, reflecting evolving financial behaviors.
Key Changes in the Scoring System
- The scoring range will expand from 0–999 to 0–1,250.
- Existing score bands, such as "poor" and "very poor," will be removed.
- Red warning colors will be phased out to reduce financial anxiety.
Impact on Consumers
According to Experian, these updates will cause 44% of customers to fall into a lower band and 42% to move up, while 14% will experience no change. However, these shifts will not influence borrowing power, as lenders will assess applications using the same criteria.
Purpose of the Changes
Rental payments and everyday financial habits will help create a more detailed picture of creditworthiness, capturing data often overlooked by traditional scoring systems.
Summary
Experian's new credit system, with an expanded scale and inclusion of rent payments, aims to better represent individuals' financial behaviors without affecting their borrowing capabilities.