Millions of renters across the UK could see their financial prospects transformed following Experian's announcement that rental payments will now be included in credit score calculations for the first time. The credit reference agency, one of three major providers in the UK, revealed the significant overhaul in November 2024, expanding its scoring range from 0-999 to 0-1,250 and incorporating everyday financial behaviours that have previously gone unrecognised. The change represents one of the most substantial shifts in British credit scoring in recent years and comes at a time when financial inclusion has become an increasingly pressing concern for policymakers, lenders, and consumer advocates alike.

The announcement arrives shortly after a concerted campaign by industry stakeholders calling for exactly this type of reform. Personal loan provider Evlo, which specialises in financial inclusion, led a coalition that submitted a formal representation to HM Treasury ahead of the Autumn Budget, urging the government to require rental payment data to be included in credit scoring. The Financial Freedom for Everyone campaign brought together 17 signatories including MPs, financial services organisations, and consumer advocates, all united in their belief that the current system disproportionately disadvantages renters. Whilst there is no evidence to suggest Experian's decision was directly caused by this initiative, the timing has sparked discussion about the growing momentum behind financial inclusion reforms in the UK.

The Case for Change

The argument for including rental payments in credit assessments centres on a fundamental inconsistency in how different types of regular payments are treated. Mortgage payments have long been included in credit reports and actively contribute to homeowners' credit profiles, helping them demonstrate financial responsibility over time. Yet rental payments, which represent one of the largest monthly financial commitments for millions of households, have not consistently counted towards building a credit history. This disparity creates what campaigners describe as a systemic disadvantage that reinforces existing inequalities in the financial system, particularly given that credit reference agencies already capture data on far smaller recurring payments such as mobile phone contracts and utility bills.

Sam Foster, Head of Marketing and Communications at Evlo, highlighted this paradox when discussing the campaign's objectives. The irony is particularly stark when considering that whilst agencies track relatively modest monthly payments, the substantially larger rental commitments often go unrecorded or unused in credit assessments. This gap has real consequences for renters who may be managing their finances responsibly but struggle to demonstrate their creditworthiness to mainstream lenders. According to the Financial Freedom for Everyone campaign, approximately 20.2 million adults in the UK are now financially underserved, representing a 50 per cent increase since 2016. More troubling still, one in three adults cannot access mainstream credit, and more than three million people have resorted to illegal lenders over the past three years. Perhaps most concerning is that 5.6 million adults are effectively "credit invisible," lacking the credit history necessary to prove their financial reliability despite meeting significant monthly obligations.

The campaign's proposals called for all credit reference agencies to be required to include rental payment data in their credit assessments, with landlords and letting agents mandated to offer tenants the option to share their positive rental payment data with credit reference agencies. By creating pathways for millions of people to build robust credit histories through their existing financial behaviour, such reforms could reduce reliance on high-cost credit and illegal lending, promote greater economic resilience, and level the playing field between renters and homeowners. The timing of the representation was particularly strategic, preceding the UK's first-ever National Financial Inclusion Strategy and the Autumn Budget, moments when policymakers might be most receptive to practical tools for addressing financial exclusion.

What Experian's Changes Mean for Consumers

Experian's new scoring model represents a comprehensive reimagining of how creditworthiness is assessed in the modern economy. Beyond rental payments, the updated system takes into account a range of financial behaviours that banks and lenders increasingly value, including cutting overdraft use, avoiding credit card cash advances, and making mortgage overpayments. The model also provides a more detailed look at regular payments on mobile phone contracts and how often customers switch providers. Edu Castro, Managing Director of Experian Consumer Services in the UK and Ireland, explained that the way people manage their money has evolved, and the credit score needed to evolve accordingly to better reflect the everyday financial behaviours that matter.

The expanded scoring range means that more than 40 per cent of customers are likely to drop down a score banding following the changes, whilst 42 per cent are likely to move up a band and 14 per cent will see their score band remain the same. Experian has been careful to stress that these changes will not impact someone's ability to get credit, and that eligibility for mortgages, loans, or credit cards remains unchanged. The agency also updated the names and descriptions of its five scoring bands, scrapping terms like "poor" and "very poor" and removing the use of red colouring to be less distressing to borrowers. The new model began rolling out in November and is expected to reach all UK customers by the end of 2025, with existing customers seeing their scores automatically updated and receiving an email once their new Experian credit score is available.

For renters who have consistently met their monthly obligations, the change could prove transformative. Those who pay rent regularly and on time through reporting services such as CreditLadder or The Rental Exchange can now see these payments contribute positively to their credit profiles. This recognition of financial responsibility extends beyond traditional credit products to encompass the reality of how people actually manage money in 2025. However, it's worth noting that whilst Experian has made this change, the UK's two other main credit reference agencies, TransUnion and Equifax, have not yet announced similar updates to their scoring systems. This means that the extent of the benefit will vary depending on which credit reference agencies individual lenders consult when making lending decisions.

The broader implications of this shift extend beyond individual credit scores to questions of fairness and financial inclusion in the UK economy. When lenders assess credit applications, they typically look at three key factors: affordability, including income and employment status; the applicant's credit report and score based on how they have managed credit over the past six years; and the lender's own records of previous interactions with that customer. By incorporating rental payment data into credit reports, Experian's updated model provides a more comprehensive and nuanced picture of financial behaviour, potentially helping millions of people who have been locked out of mainstream credit despite demonstrating consistent financial responsibility. Whether this leads to similar changes at other credit reference agencies, and whether the government includes rental payment recognition in its forthcoming National Financial Inclusion Strategy, remains to be seen. What is clear is that the conversation about how we assess creditworthiness in modern Britain has fundamentally shifted, with recognition that the financial system must evolve to reflect the diverse ways people manage money today.