Big news for renters: your rent will soon count towards your credit score

If you rent your home, there’s some good news coming your way. The credit ratings agency Experian is updating how it calculates credit scores, and for the first time, rent payments will be included.

The goal is to reflect “more of the everyday financial behaviours that matter”, like paying rent or keeping your overdraft under control.

What will change?

• new maximum score: the top credit score will rise from 999 to 1,250
• new look and names: Experian is removing the ‘poor’ and ‘very poor’ categories, and the red colour that came with them
• the new score bands will be: excellent, very good, good, fair and low
• guidance: if you fall into the ‘low’ category, you’ll get tips on how to boost your score

When will it happen?

The new scoring system is being rolled out this month, with the aim of making it available to all customers by the end of the year.

It will be available on Experian’s free version.

Why are credit scores important?

Your credit score shows lenders how likely you are to repay borrowed money. It helps them decide whether to offer you loans, credit cards, or mortgages, and on what terms.

What can hurt your credit score?

Things that can lower your score include:

• missing or making late payments
• going over your credit limit
• applying for credit too often
• having joint accounts with someone who has poor credit
• taking cash out on your credit card
• bankruptcy or court judgments
• not being on the electoral register
• errors on your credit report
• moving house frequently

How far back does it go?  

Your credit history goes back 72 months (six years). It updates monthly, showing every repayment you’ve made or missed.

How to check your credit score?  

You can check your credit score for free at: 

• Clearscore 

• Experian 

• Credit Karma 

Why it’s worth improving your credit score

A better score can mean:

Improving your credit score has several benefits: 

• a higher chance of being approved for credit cards, loans and mortgages

• lower interest rates, saving you money

• higher credit limits

Just remember: only borrow what you can afford to repay.

From paying your bills on time to registering to vote, here’s how to improve your credit score in 2025.