TransUnion to change millions of people's credit scores – but it's what's on your credit FILE that matters most

While your credit score can be a useful indicator; it's a credit reference agency's view of you, and may not even be looked at by a lender. What matters most is checking what’s on your credit file.

What's changing at TransUnion in brief

• Instead of a credit score out of 710, you'll soon be scored out of 999.

• 'Poor' will be removed from the scoring bands. 'Low' and 'Very low' will replace 'Poor' and 'Very poor'. TransUnion says this new language is considered more neutral and less negatively-charged.

• The new scoring system will be rolled out between September 2026 and June 2027. If you use MoneySavingExpert.com's Credit Club – where you can access your TransUnion credit score for free – you won't see the new scoring system until at least late October 2026.

• You may see two different scores depending on how and when you access it. TransUnion says this will only be temporary while the rollout takes place.

• Most TransUnion users will see a change to their credit score – though the majority will remain in the same band. Just over a third (36%) will find themselves in a higher scoring band than currently, over half (58%) will remain in the same band, while 6% percent will move into in a lower band.

• TransUnion's scores will now also take into account account balance changes, overdraft facility use and withdrawing cash on credit cards.

Your TransUnion score will soon range from 0 to 999

Here is how the new scores and bands will look:

TransUnion says the new scores have been introduced to better reflect the factors lenders currently take into account when deciding whether to give you credit. It adds that this will provide a more "holistic" view of how you manage your credit over time, as well as better reflecting the scores of those with little or no credit history.

The move by TransUnion follows a similar credit score shake-up by credit reference agency Experian in November last year, which saw it change its scores to out of 1,250, instead out of 999. Experian also dropped the 'poor' wording from its score bands.

Remember – lenders largely use your credit history, NOT your 'score'

TransUnion is one of the UK's three main credit reference agencies (CRAs), the other two being Experian and Equifax. These hold lots of information about how you've managed credit in the past, such as:

• Your repayment history for credit cards, loans and mortgages.

• Your past applications.

• Whether you're on the electoral roll.

Lenders use this data to help them decide whether to lend to you. All this information is held on your credit report.

The agencies then each give you a separate credit 'score' too – but this is just the agency's indication of how a typical lender might view you based on your credit history. Each agency uses a different scoring range – Equifax's is out of 1,000 and Experian's out of 1,250 – and these ranges can be and are occasionally changed by the agencies.

There's also an element of art as well as science to CRAs' scores, so it's not worth trying to micromanage it as each lender is different. For example, close a credit card and your score may rise with one as you've less available credit, yet be less attractive to other lenders as they like signs of long-term loyalty.

Provided you keep these limitations in mind, credit scores can still be useful though. Don't sweat small changes, they mean little, but big swings do likely matter. They can, for example, signal you've committed a real credit blunder, such as missing a repayment, going over your limit or defaulting. If you haven't, then you need to find out why and check your credit report – it could be an error or identity fraud.

And your credit history is only part of the picture

While the CRAs know a lot of detail about you, the information they hold is only one of the sources lenders use when deciding whether to give you credit. Other crucial factors include:

• Your 'affordability', which is in large based on your income. For example, even if you've got a perfect credit score, if you apply for a £60,000 loan but only have a £30,000 income, you're unlikely to be accepted, as you won't pass the affordability test.
  
  Credit reference agencies miss this information because your credit report doesn't include details of your salary or income. See what credit reference agencies do and don't know about you.

• Any past history you've had with the lender you're applying to.

• Current market conditions. Sometimes it's not you; it's them. Each lender has its own specific wish list of what makes a profitable customer. Usually, profitability correlates to low risk, but some specialist lenders see higher risk, and the higher rate they can then charge, as more profitable.

The unique Credit Eligibility Rating in our Credit Club takes all of these factors into account – making it the best way to find out if you're likely to be accepted for credit.