TransUnion to Launch New Credit Score System Next Month
Credit reference agency TransUnion has announced it will begin rolling out an overhauled consumer credit scoring system from next month, with the full transition expected to run until June 2027. The new system expands the score range from the current 0–710 to 0–999 and introduces a broader set of data inputs, including how account balances have changed over time and how credit cards are used.
According to TransUnion, the updated score is designed to “reflect consumer financial behaviour with greater depth and precision.” The company also says the overhaul will differentiate between consumers with little or no credit history and those with a poor rating, which it argues should be fairer to people who are newer to credit.
The rating bands themselves are also changing. Under the new system, the “very low” category—replacing the current “very poor”—will cover scores from 0 to 487, down from the previous 0 to 550. At the other end, an “excellent” rating will now require a score between 786 and 999, compared with the old range of 628 to 710.
TransUnion estimates that 58% of consumers will see no change to their banding, 36% can expect their banding to go up, and 6% are expected to see their banding go down. The firm stresses, however, that the information shared with external lenders about a consumer’s credit history will not change, meaning the new score should not affect lending decisions.
The company points out that banks and lenders do not use the credit score itself when assessing applications for loans, credit cards, or mortgages. Instead, they rely on the underlying credit history, including whether repayments were made on time and how much credit is being used.
TransUnion is one of three main credit reference agencies in the UK, alongside Experian and Equifax, each of which uses its own scoring method. This means consumers typically have different credit scores with each agency.
James Robinson, managing director of consumer interactive for TransUnion in the UK, said: “There is still significant confusion among consumers about what credit scores mean, with many believing the score they see is the same one used by lenders. Our new score is designed to minimise this confusion by using a broader range of behaviours over time, rather than a single snapshot.”
Madhu Kejriwal, chief executive of TransUnion’s UK operations, added: “Our next-generation score is clearer, more transparent, informative, and better aligned with how lenders view consumers today. We believe that understanding your credit health is the foundation for confidently making more informed financial decisions.”
During the phased rollout, some consumers may temporarily see two different TransUnion credit scores, depending on which app or provider they use to access their score. The new scoring will be backed by more than 300 practical tips and personalised insights aimed at helping consumers understand the factors that affect their credit profile and the actions they can take to improve it.
The move follows a similar overhaul by Experian, which announced in November last year that it would expand its scoring range from 0–999 to a maximum of 1,250.