Credit reference agency TransUnion is updating its credit scoring system, and some consumers could see their rating go down. The company currently issues credit scores ranging from 0 to 710, but this will increase to a 0 to 999 scale. The banding for creditworthiness ratings, from “very poor” to “excellent,” will also change as part of the update.
How the new bands compare
Currently, a “very poor” credit score is between 0 and 550, but under the new system this will be 0 to 487. To achieve an “excellent” rating now, consumers need a score of 628 to 710, which will change to between 786 and 999 under the new scoring model.
The new score will be rolled out from late September 2026 until June 2027. During this transition period, some people may temporarily see two different TransUnion credit scores, depending on where they access their score.
What the change means for consumers
TransUnion estimates that over half of consumers (58%) 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. Crucially, the information shared with organisations about a consumer's credit history will not change.
This means the change should not impact or influence lenders' decisions on credit applications. Banks and lenders do not use the credit score itself when assessing a loan, credit card, or mortgage application. Instead, they use the credit history, including whether repayments have been made on time and credit usage, to decide whether to lend.
Why the score is changing
There are three main credit reference agencies in the UK – TransUnion, Experian, and Equifax – and each uses its own method to calculate a credit score. This means consumers will have a different score with each agency.
TransUnion says its new credit score will help consumers better understand how to improve their creditworthiness and their options when it comes to borrowing. The new score draws on a broader range of data inputs, including how account balances have changed over time and how credit cards are used.
Madhu Kejriwal, Chief Executive Officer for TransUnion in the UK, said: “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. With practical guidance, personalised insights and tailored support, consumers now have the tools to take meaningful action and move toward their financial goals.”
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.”
TransUnion credit score change in full
The existing credit score bands are: Excellent – 628 to 710; Good – 604 to 627; Fair – 566 to 603; Poor – 551 to 565; Very poor – 0 to 550. The new bands will be: Excellent – 786 to 999; Good – 653 to 785; Fair – 563 to 652; Poor – 488 to 562; Very poor – 0 to 487.
