Renters across the UK will soon see their monthly rent payments reflected in their credit scores, as Experian overhauls how it measures financial behaviour.
The credit rating agency said the changes are designed to create a fairer picture of people’s finances by including “everyday financial behaviours that matter,” such as paying rent, managing overdrafts responsibly, and keeping up with phone contracts.
The new system, which starts rolling out this month and will be available to everyone by the end of the year, also increases the maximum credit score from 999 to 1,250.
Old labels scrapped as scoring system modernised
Experian has also ditched the negative-sounding labels “poor” and “very poor” and will no longer use red colour coding in its reports. Instead, scores will fall into five categories: Excellent, Very Good, Good, Fair, and Low.
People with lower scores will receive tailored advice on how to improve their credit rating — such as paying down debt, avoiding cash advances, or setting up regular direct debits.
A spokesperson for Experian said the new approach reflects how more lenders are now rewarding consistent rent payments.
“Renters who pay on time every month can now get the same recognition as homeowners who pay their mortgage,” the spokesperson said. “It’s great news for responsible tenants.”
However, tenants will need to opt in to have their rent data included, and missing payments could still damage their score.
Everyday spending now part of credit picture
The new system will also consider how people use their overdrafts, whether they make extra mortgage payments, and how regularly they switch mobile or utility providers.
Experian said the changes will not affect someone’s eligibility for loans, mortgages, or credit cards — but it will mean some people see their score move up or down.
According to the company, about 44% of users will move down a score band, 42% will move up, and 14% will stay the same once the new system takes effect.
A fairer deal for renters
The update is being welcomed as a step towards recognising renters, who have often been left out of traditional credit scoring models that tend to benefit homeowners.
Experian said the move reflects the growing importance of rental history in lending decisions. Its rivals, TransUnion and Equifax, have yet to announce similar changes.
