Your credit score is changing – we asked TransUnion what it means for you

Your credit score is getting a makeover. We spoke to TransUnion about what’s changing, why it matters and what you need to know if your number suddenly goes up – or down.

What is a credit score?

Your credit score is a number that helps lenders decide how risky it may be to lend money to you. It’s based on your financial history and how reliably you’ve managed credit in the past.

If you regularly check your credit score, you might want to take a second look in the coming months.

What’s changing?

TransUnion, one of the three main credit reference agencies in the UK, is changing the way it calculates its consumer credit score, and the usual  number out of 710 is being replaced with a score out of 999.

But before you start worrying that your credit rating may have taken a nosedive, your finances haven’t suddenly changed just because the number has.

The change is purely to the way your score is calculated and presented to you, and not to the underlying information in your credit report.

And it’s worth noting that your credit history can play an important role when you apply for financial products, with a stronger credit profile potentially giving you access to a wider range of products and, depending on the lender and your circumstances, better interest rates.

And people with poorer credit scores can pay a lot more for borrowing.

We put the questions to Caroline Fowler, director of product and presales – consumer interactive at TransUnion, to get the lowdown.

So, what’s actually changing, and why?

“TransUnion is introducing a completely rebuilt credit score model. The previous score had been in market for some time and, while still effective, lending practices, available data, technology and consumer expectations have evolved significantly.

“The new model uses modern scoring techniques and provides consumers with a clearer and more accurate view of their credit health.”

In other words, the big change is behind the scenes, but the first thing you’re likely to notice is a very different number on the screen.

The score is changing from a maximum of 710 to 999. What does this mean?

“Consumers should not be concerned if they see a different score. The underlying credit information has not changed.

“The new score range is designed to provide a more up to date reflection of credit health and lender assessment.

“Around 36% of consumers are expected to move into a higher score band, although some may move up, down or remain unchanged.”

That’s an important distinction. Your score might look different, but that doesn’t mean the information sitting behind it has suddenly changed.

Will anything change on a consumer’s credit report or in the information lenders see?

“No. There are no changes to the credit report itself or to the data lenders use to make lending decisions. The change only affects the way the consumer-facing score is calculated and presented.”

In other words, your report remains your report and the change is about how the score you see is calculated.

Could a score change even if financial circumstances have not changed?

“Yes. Because the scoring model has been rebuilt, the score may increase or decrease despite no change in financial behaviour.

“This does not mean a person is more or less likely to be accepted for credit than before; it simply reflects a more accurate assessment under the new methodology.”

So, if you’ve been diligently paying your bills, haven’t taken on new borrowing and haven’t changed your financial habits, don’t be surprised if your score still moves when the new score is in place.

How does the new score provide a better picture of credit health?

“The previous model used a snapshot of information at a single point in time.

“The new model considers behavioural trends over time, such as changes in how a credit card is being used, differences in payment behaviour and other account activity. This provides a more complete view of how financial behaviour is changing over time.”

For consumers, that could make the information behind the score more useful, particularly if you’re trying to understand what’s helping or hurting your credit profile.

How does the new score help people with limited credit history?

“The new approach more clearly distinguishes between consumers with little credit history and those with poor credit history.

“It also enables more tailored guidance, helping consumers understand practical steps such as maintaining repayment performance, registering on the electoral registerl and responsibly building a credit history.”

That distinction could be particularly useful if you’re new to borrowing, young, new to the UK or simply haven’t had much reason to use credit.

Having little credit history isn’t necessarily the same thing as having a poor credit history, and the new approach aims to make that clearer.

How will consumers know what actions to take?

“TransUnion provides educational content, score factors and personalised next best action guidance through partner organisations.

“These insights help consumers understand the specific actions most likely to help improve their credit profile.”

And that’s potentially one of the most useful parts of the change.

Knowing your score is one thing. Knowing why it looks the way it does, and what you can actually do about it, is much more helpful.

Why might consumers see two TransUnion scores during the rollout?

“TransUnion works through a wide network of partners, each implementing the new score at different times.

“The new score will begin appearing from late September 2026, with major partners adopting it through October and November. Full migration across all partners is expected by June 2027.”

This is where things could get a little confusing.

Because the new score is being rolled out in stages, you could temporarily see different scores, depending on which app, website or service you use.

It could simply be that one service has moved to the new model while another is still using the old one.

 What does the change mean for people on lower incomes or those experiencing financial difficulty?

“Consumers should focus on the personalised guidance provided alongside their score. The most appropriate action will vary by circumstance.

“Where financial difficulties arise, consumers are encouraged to engage with lenders early, seek support and make use of available guidance services.”

If money is already tight, a changing credit score can feel like just another thing to worry about.

But the most important thing is to focus on your individual circumstances rather than getting hung up on the number itself.

Will the new score affect approval for mortgages, loans or credit cards?

“No. Lenders will continue to make their own decisions using credit bureau data, information supplied by consumers and their own lending policies.

“The change does not alter the underlying information used in lending decisions.”

So, if your new score looks dramatically different from your old one, don’t automatically assume your chances of getting a mortgage, loan or credit card have changed in the same way.

Lenders have their own criteria and make their own lending decisions.

What are the top tips for improving credit health?

“Register on the electoral register, keep credit usage as low as possible, maintain repayments, avoid missed payments and retain long-standing credit accounts where appropriate, as these can demonstrate stability and responsible credit management.”

The good news is that the arrival of a new scoring system doesn’t mean you need to completely rethink how you manage your money.

The basics still matter: keep up with repayments, avoid missed payments and be sensible about how much of your available credit you use.

And if you’re trying to improve your credit profile, make sure you look at the specific guidance provided alongside your score – your circumstances are unique, so what helps one person may not necessarily be the most relevant step for another.