TransUnion launching credit score overhaul - here's what's changing

TransUnion is overhauling its credit rating system in a bid to make it "clearer, more transparent and informative".

The credit agency will soon begin to roll out an expanded scoring system ranging from 0 to 999 - up from 710 currently.

The lowest rating of "very poor" is also being replaced with "very low", with borrowers rated up to the top "excellent" marker.

Alongside the updated range, TransUnion said the new score used a broader set of data, such as how account balances have changed over time and how credit cards are used.

It said the changes were being brought in to "better reflect consumer behaviours and changes in the lending landscape".

Here's a look at the new scoring bands:

TransUnion said the changes would also differentiate between consumers who are new to credit or have limited credit histories and those who have a poor rating.

The company said that while users may see their score has changed, the underlying information in their credit report remained the same.

"The score is designed to help you understand your credit health, but lenders make their own decisions based on the information in your credit report and their own lending criteria," it said.

Myth or must: What impact does credit score have on getting a mortgage?

Some people may see two different credit scores on their TransUnion account while the rollout takes place.

It comes after Experian announced an overhaul of its scoring in November last year from 0 to 999 to a maximum of 1,250.

Equifax, the other main credit agency, offers a score between 0 to 1,000.

What is a credit score?

Your credit score is a number that indicates how reliable you are at borrowing and repaying money. The higher the rating, the more likely you are to be offered credit and good interest rates.

Frequently setting up new accounts, applying for credit too often, missing payments and borrowing more than you can afford can all negatively affect your credit score.

(c) Sky News 2026: TransUnion launching credit score overhaul - here's what's changing