Credit Score Basics > Does using Clearscore affect credit rating?

Does using Clearscore affect credit rating?

The short answer is no, Clearscore does not affect your credit rating. You can check your credit score and report on ClearScore as often as you like, and it won't affect your score.

What is ClearScore?

In the UK, three leading credit reference agencies calculate your credit score and put together your credit report: Equifax, Experian, and TransUnion.

ClearScore is a fintech (financial technology) company that uses Equifax data to provide free access to your credit report and credit score. In exchange, they might show you promotional offers from ClearScore marketplace partners. If you decide to buy any of the financial products there (say, insurance), ClearScore will take a small cut.

Now, you might be asking: why not just get my credit score from Equifax? The answer is that Equifax, along with Experian and TransUnion, charges monthly payments to access your credit score.

Again, ClearScore does this for free, which might be the reason why it's grown so fast – it now has over 20 million users.

What kind of check does ClearScore use?

ClearScore only uses soft checks; the first one happens when you register with them.

A soft search means it's only available to you and not to lenders. Soft checks also do not impact your credit score and are removed after 1 year anyway.

From then on, ClearScore receives your updated credit report and score once a month, which again will show up as a soft check on your file.

That's different from a hard check, which is a type of credit search that does leave a mark on your credit report. This type of check is visible to the prospective lenders and will affect your score.

Most hard checks stay on your credit report for 12 months, while a debt collection check is visible for up to 2 years.

Why do lenders care about hard checks, anyway?

A hard check is very different from a soft check – the kind that ClearScore uses – because it’s visible to lenders.

There are a few reasons why lenders care about hard checks:

• It makes you seem desperate for credit, and lenders worry about your ability to stay on top of your finances.
• A hard check can also cause your credit score to drop slightly for a short period of time.
• It may indicate new debt that doesn't yet show on your credit report as an account – lenders obviously want to know about this.

Some examples of applications that require hard checks:

• Any application for a loan, credit card, or mortgage
• Some mobile phone or broadband contracts may also require a hard check.

In any case, ClearScore does not run a hard check – so you can put your mind at ease and check your credit score as often as you like.

• Credit Score Factors