Summary
Experian, a credit agency in the UK, is updating its credit scoring system to include rental payments. This change aims to give a fuller picture of an individual's financial behavior and will adjust the highest possible credit score from 999 to 1250. Renters who pay on time can opt into this new system to potentially improve their scores.
Key Facts
- Experian will include rental payments in credit scores.
- The maximum credit score will change from 999 to 1250.
- New scoring bands: Excellent, Very Good, Good, Fair, Low.
- Renters must opt in for rental payments to affect their scores.
- Missing rent payments will negatively impact credit scores.
- The updated system considers overdraft use and mobile payments.
- Changes will start rolling out this month and be fully available by the year's end.
- Other UK agencies, TransUnion and Equifax, are not affected by these changes.
