Does Clearpay affect credit score? Here’s the Answer!

Have you ever wondered: Does Clearpay affect credit score? Well, that’s a common query among a lot of clients we handle at Boshhh. In this blog post, we’ll walk you through what Clearpay is, how it works, and how it impacts credit scores (if at all). 

Whether you're new to Buy Now Pay Later (BNPL) or you're already a regular user, this guide will help you understand how services like Clearpay might affect your financial health-especially your credit score.

What is Clearpay and How Does it work?

Clearpay is a Buy Now Pay Later (BNPL) service that lets you split your purchase into 4 interest-free instalments, paid over six weeks. The first payment is made at the time of purchase, and the remaining three are taken every two weeks.

When you choose Clearpay at checkout, you’re borrowing a fixed amount of credit to cover your purchase. This credit is not regulated by the Financial Conduct Authority (FCA), so it’s important to understand how it works before you start using it.

You must be 18+ and a permanent UK resident (excluding Channel Islands) to apply. Other eligibility criteria and T&Cs apply. If you miss a payment, a £6 late fee is applied, and if it's still unpaid after 7 days, another £6 is added. For orders under £24, late fees are capped at £6. For orders above £24, fees are capped at the lower of £24 or 25% of the order value.

The Big Question: Does Clearpay Affect Credit Score?

Here’s the good news:
Clearpay does not run a hard credit check when you sign up. That means your credit score won’t take a hit just because you applied for or used the service.

But what about ongoing usage? Or if you miss a payment?

According to Clearpay’s policy, missed payments won’t affect your credit score immediately because Clearpay does not report to credit bureaus under normal circumstances. However, if your account becomes overdue and unpaid for an extended period, it can be passed to a debt collection agency, and that may end up on your credit report.

So to put it simply:

• Using Clearpay responsibly? No credit score impact.

• Miss payments repeatedly? It could lead to consequences, including potential damage to your credit file.

Does Clearpay Improve Credit Score?

Clearpay doesn’t report your activity to any credit bureau-good or bad. Your credit score will not change. But here's the catch: that also means Clearpay doesn’t help your credit score improve. So if you’re wondering, “Does Clearpay build credit?”-the answer is no, not at the moment.

Unless Clearpay starts reporting on-time payments (like a credit card or a loan would), it won’t help build your credit history. So while it may be a handy budgeting tool, it's not the same as using a credit card responsibly to improve your credit score.

Let’s break it down clearly.

• Clearpay does NOT improve your credit score.

• It also does NOT build credit, because it doesn’t report on-time payments to credit bureaus.

• But it can hurt your credit score if your account becomes overdue and is sent to a debt collector.

So, to answer the full question-does Clearpay affect your credit score?- only if you mess up.

Final Thoughts

If you're using Clearpay as a budgeting tool and you’re confident in paying on time-it can be a helpful way to spread out costs. But if you're looking to build credit, you’ll need to look at other options like credit cards, credit builder loans, or services that report your on-time rent or utility payments.

So, the next time someone asks you, “Does Clearpay affect credit score?”-you’ll know the real deal.

Finally, please use Clearpay responsibly. It’s a form of credit, even if it feels casual. While there are no fees when you pay on time, missing payments could lead to fees, blocked access, and even debt collection.

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