Experian UK & Ireland has announced it will incorporate new data, including rent and phone contracts, into its latest credit score.

The company said the move takes into account more of the "positive financial behaviours" people demonstrate in their everyday lives which are now being used by banks and lenders.

Other new behaviours the credit score will include are reducing overdraft use and avoiding credit card cash advances.

The new credit score now also has an expanded range from 0–999 to 0–1250, allowing for a more granular breakdown of financial behaviour.

Experian said this change will help users understand how banks and lenders interpret their credit report and what actions can positively impact their score.

It added that it plans to give people clearer insight into what affects their score and how much of an impact different financial habits have.

The new score will not affect someone’s ability to get credit, with eligibility for things like mortgages, loans, or credit cards remaining the same.

Experian said that the updated score instead provides a more detailed view of people’s financial track record and the new information that banks and lenders have started using.

When people make a credit application, a lender will generally look at affordability, their credit report and score, and the lender's own records.

“The way people manage their money has evolved, and our score has evolved too," said Edu Castro, managing director, Experian Consumer Services, UK & Ireland. "Our new Experian Credit Score better reflects more of the everyday financial behaviours that matter - like paying rent or reducing overdraft use – offering a clearer understanding of the information on your credit report.

"This means people get a more personalised view of how they’re doing financially and more practical ways to improve their score - helping unlock better borrowing opportunities for the future.”

Steve Round, co-founder and president of core banking platform SaaScada, who has a background in financial inclusion having chaired the Global Alliance on Banking Values and the Big Issue Foundation, praised the move.

"One in five UK households are private renters, a market that is largely made up of lower income families and individuals - many of whom desperately need access to financial support," he said. "It’s crazy that for so long, tenants who dutifully paid their rent each month have been ignored by credit agencies, while those paying mortgages or credit cards are rewarded."

Round said that the move is "just the start", and called on financial services firms build a more complete picture of prospective customers, using real-time data to assess affordability and eligibility more accurately.

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