Experian's new credit scoring system: what it means for car finance customers

Experian credit score update

If you've ever applied for car finance, or any other type of loan, you'll know that your credit score plays a big part in your approval - it's one of the key ways lenders assess how you manage money.

Now, Experian, one of the UK's main credit reference agencies, has made a big change to its scoring system. From this month (November 2025), Experian's new model will give a more detailed and fair reflection of everyday financial behaviour - and the numbers on your credit report are about to look a little different.

Here's everything you need to know. 👇

New scores: 0 to 1,250

Experian's credit score will now run from 0 to 1,250, instead of 0 to 999. 

This change is designed to provide more detail and flexibility in assessing creditworthiness. You might see your number change even if your financial habits haven't - don't worry, it doesn’t mean your creditworthiness has suddenly declined (or improved). It's just reflecting the new scale.

New credit score bands

Experian has also refreshed how it labels its credit score categories, removing 'Poor' and 'Very Poor', as well as the red colour coding.

Excellent: 1,121 - 1,250 

Very Good: 1,001 - 1,120

Good: 861 - 1,000

Fair: 641 - 860

Low: 0 - 640

The new scale has been designed to be more constructive - if your credit score is in the 'Low' band, Experian will now give clearer guidance on steps you can take to improve.

Experian estimates that 44% of people will move down a score band, 42% will move up, and 14% will stay the same.

Everyday habits now matter more

The new system looks beyond traditional credit activity to include more of your real-world financial behaviour. That means things like: 

• Paying rent on time (if you opt in to share this information) 🏠
• Reducing overdraft use 📉
• Avoiding credit card cash advances 💳
• Making mortgage overpayments 💰
• Managing mobile phone contracts responsibly and not switching providers too often 📱

For many people, especially renters or those with limited credit history, this could be great news - offering more ways to show good money management.

No change to credit eligibility

Experian has confirmed that these updates won't affect your eligibility for loans, mortgages, and credit cards. Lenders, including car finance providers like First Response Finance, will continue to look at your full financial picture, not just your score. 

What it means for car finance customers

For our customers, this update means we'll see slightly different Experian scores when we carry out credit checks. 

Don't worry if your score looks higher or lower than before - what matters most is your overall credit behaviour. Regular on-time payments, low credit utilisation, and keeping your accounts in good order remain the most important factors.

Top tip: if you're renting, consider opting in to have your rent payments reported. It's an easy way to build a stronger credit profile.

Experian's new scoring system is designed to give a fairer, more rounded view of how people manage money. Whether you're applying for car finance or working on improving your score, these changes aim to make credit scoring more reflective of everyday life.