Credit Building > Does Clearpay Do a Credit Check? Here's What You Need to Know

Does Clearpay Do a Credit Check? Here's What You Need to Know

Wollit Team1 minute read · Updated 18th February 2025

If you're considering using Clearpay for online shopping, you might wonder about credit checks and their impact on your credit score. Here's everything you need to know about how Clearpay assesses applications and affects your credit profile.

Does Clearpay Check Your Credit?

Yes, Clearpay does perform a credit check - but it's a 'soft' check that won't affect your credit score. This type of check gives Clearpay a basic overview of your financial status without leaving any visible footprint on your credit report.

How Does Clearpay Work?

Like most buy now pay later providers, Clearpay splits your purchase into four equal payments:

First payment due at checkout
Remaining three payments automatically charged every two weeks
No interest charges if you pay on time
£6 late fee for missed payments (capped at £24 for orders over £24)

Will Clearpay Affect Your Credit Score?

The impact of Clearpay on your credit score varies depending on how you manage payments:

Regular Use: Making payments on time won't improve your credit score because Clearpay doesn't report regular payments to credit reference agencies.

Missed Payments: While initial late payments won't affect your score, if your account goes into default, it may be passed to a collection agency. This can seriously damage your credit score.

Important Considerations

Before using Clearpay, consider these factors:

Limited Protection: Clearpay transactions aren't regulated by the Financial Conduct Authority, meaning you don't get the same protections as with credit cards.

Payment Management: You'll need to ensure sufficient funds are available for each automatic payment to avoid late fees.

Multiple BNPL Services: Using several buy now, pay later services can make it difficult to track your total commitments.

Building Your Credit Score: A Better Approach

While Clearpay offers convenient payment splitting, it won't help build your credit score. If improving your credit score is your goal, consider a dedicated credit-building solution instead.

Even for larger purchases like furniture, using a credit-building service provides a structured way to build your credit score through regular, manageable payments that are reported to all major credit reference agencies. Unlike buy now, pay later services, this approach is designed specifically to help improve your credit profile over time.