Will ClearPay Impact My Credit Score?


In this guide, you’ll explore the relationship between ClearPay, a rising ‘buy now, pay later’ service in the UK, and its potential impact on your credit score.


In today’s fast-paced digital economy, services like ClearPay are rising to the fore in the United Kingdom, offering convenience and flexibility in managing payments. 

However, as more individuals adopt this novel way of paying, questions about its impact on credit scores are becoming increasingly significant.

After all, your credit score forms the backbone of your financial health. So, does ClearPay affect your credit score? Let’s delve into this question.

Understanding ClearPay

ClearPay, part of the Afterpay Touch Group, is a ‘buy now, pay later’ service, allowing consumers to purchase items and pay in four equal instalments, due every fortnight, interest-free. 

This service is a boon for those wanting to manage their budget more effectively. However, like all financial tools, ClearPay comes with potential risks, particularly if used irresponsibly.

How Credit Scores Work in the UK

In the UK, a credit score is a numerical representation of your creditworthiness, derived from your credit history.

Lenders use this score to determine whether to approve your application for loans, credit cards, or mortgages. Maintaining a good credit score is crucial as it influences the financial products you’re eligible for and the interest rates you’ll pay.

Factors such as late payments, bankruptcy, and high levels of debt can negatively impact your score.

Conversely, timely payments, low credit utilisation, and a long history of good credit behaviour can boost it.

Why Is Credit Score Important? 

Understanding the importance of your credit score is fundamental to maintaining good financial health.

Your credit score is more than just a number; it’s a reflection of your financial reliability to lenders.

Here’s why it’s crucial:

Access to Financial Products

Lenders, including banks and credit card companies, use your credit score to determine whether they will lend to you. 

A higher score could make you eligible for a wider range of financial products.

Interest Rates

Your credit score doesn’t just affect your eligibility for credit; it also impacts the interest rates you’re offered. 

Generally, the higher your score, the lower the interest rates you’re likely to be offered, potentially saving you a significant amount of money over time.

Renting Property

Landlords may check your credit score before agreeing to rent a property to you. A poor credit score might make it more difficult for you to rent a home.

Employment Checks

Some employers conduct credit checks as part of their hiring process, especially for roles involving financial responsibility.

A good credit score can therefore even impact your career prospects.

Given these potential implications, maintaining a good credit score is a critical aspect of managing your finances effectively.

Remember, a good credit score is built over time through consistent, responsible financial behaviour.

ClearPay and Credit Scores: The Direct Connection

When you apply for ClearPay, the company performs a ‘soft’ credit check to verify your identity and assess your eligibility. 

This type of check doesn’t affect your credit score. However, ClearPay does reserve the right to report any negative activity, such as missed payments, to credit reference agencies, potentially impacting your credit score.

Indirect Ways ClearPay Can Impact Credit Score

Although ClearPay doesn’t directly affect your credit score, indirect implications may arise from poor financial management. 

For instance, consistently making late payments or defaulting on your ClearPay agreement can trigger a ‘hard’ credit check, which could dent your score.

Moreover, frequent use of ‘buy now, pay later’ services may be viewed negatively by lenders, as it could signal financial distress or poor money management, even if you make payments on time.

How to Use ClearPay Responsibly to Avoid Negative Impact on Credit Score

To avoid potential negative impacts on your credit score, use ClearPay responsibly. Ensure you can afford the repayments before committing to a purchase, and set reminders to make payments on time. 

Try to limit your use of ‘buy now, pay later’ services, and maintain a balanced mix of credit products.

It’s also important to monitor your credit report regularly to check for any errors or signs of fraudulent activity, and to understand how your financial behaviour affects your score.


In summary, while ClearPay doesn’t directly impact your credit score under normal circumstances, irresponsible use could lead to indirect effects. 

The key to maintaining a healthy credit score while using ClearPay lies in responsible money management. 

Like any financial tool, ClearPay can be beneficial when used wisely, but detrimental when misused. Always consider your ability to repay and your overall financial health before committing to any ‘buy now, pay later’ service.


<strong>Maxine McCreadie</strong>

Maxine McCreadie

Maxine is an experienced writer, specialising in personal insolvency. With a wealth of experience in the finance industry, she has written extensively on the subject of Individual Voluntary Arrangements, Protected Trust Deed's, and various other debt solutions.