TransUnion, the credit reference agency behind your free MoneySuperMarket Credit Score, is introducing a new way of calculating credit scores.
This means your credit score and rating could look different, even if nothing has changed in how you manage your money.
But don't worry. The update won't change the information in your credit report or directly affect your ability to get credit.
Here's what's changing, what it means for you and why there's no need to be concerned.
What's changing?
TransUnion is making three changes to how your credit score works:
A new scoring scale: Your credit score will now be calculated out of 999 instead of 710.
Updated credit ratings: The five credit score bands are being refreshed, with 'Poor' and 'Very poor' changing to 'Low' and 'Very low'. This is intended to make the ratings more neutral and inclusive, particularly for people with limited credit history.
A more detailed score: The new calculation considers more information about how you manage credit over time, including changes in account balances, overdraft usage and cash withdrawals on credit cards.
These changes are designed to give you a clearer picture of your credit health and help you better understand how you're managing credit.
Because the way your score is calculated is changing, you might notice a difference in your score or rating, even if your financial circumstances haven't changed.
How are the credit score bands changing?
Alongside the new scoring scale, TransUnion is updating the score ranges for each credit rating.
Here's how the old and new bands compare:
Credit rating | Previous score (out of 710) | New score (out of 999) |
Excellent | 628–710 | 786–999 |
Good | 604–627 | 653–785 |
Fair | 566–603 | 563–652 |
Low (previously Poor) | 551–565 | 488–562 |
Very low (previously Very poor) | 0–550 | 0–487 |
Will my credit rating change?
Your credit rating can possibly change, but most people will stay in the same band or move into a higher one.
Based on TransUnion's estimates:
58% of people will stay in the same credit rating band.
36% will move into a higher band.
6% will move into a lower band.
Remember, the old and new scores aren't directly comparable because they're calculated differently.
So, if your score or rating changes, it doesn't automatically mean your credit health has improved or worsened.
Will this affect my ability to get credit?
No. The change to your MoneySuperMarket Credit Score won't directly affect whether you're accepted or declined for credit.
Your credit score is designed to help you understand your credit health. It's an indicator, rather than a score that lenders use to decide whether to lend to you.
When you apply for credit, lenders don't access your MoneySuperMarket account or the credit score and rating displayed there.
Instead, they obtain information directly from the credit reference agencies they use, such as TransUnion, Experian or Equifax.
They then assess your application using their own lending criteria and scoring methods, which may consider:
Your credit history and how you've managed borrowing.
Your existing debts and financial commitments.
Your income and affordability.
Other information provided in your application.
This means lenders don't see or use your MoneySuperMarket credit rating when deciding whether to offer you credit.
And because this update doesn't change the underlying information in your TransUnion credit report, it won't, by itself, affect a lender's decision.
Is my credit report changing too?
No. Your credit report isn't changing as part of this update.
Your credit report contains information about your borrowing and repayment history, including credit accounts, outstanding balances and payment records.
TransUnion uses this information to calculate your credit score. The update changes how that information is assessed and presented as a score, not the information itself.
Your credit report will continue to update as normal when lenders and other organisations provide new information.
Do I need to do anything?
No, there's nothing you need to do.
Your updated score and rating will appear automatically in your MoneySuperMarket account when the changes take effect.
You can continue checking your free credit score, reviewing your credit report and using the personalised tips available to help you understand and improve your credit health.
And remember, checking your own credit score won't affect it.