What is Clearscore - How does it work?

It’s a good idea to keep an eye on your credit score, especially if you’re planning to apply for a mortgage, loan or credit card.

One of the ways to check in on your credit history is with a company like ClearScore. It’s one of a number of financial technology companies which provides credit scores and reports in the UK.

But how exactly does ClearScore work? Read on to find out, along with info on what you can do with an ClearScore account and how to sign up.

We’ll also show you a financial product you can open quickly and easily without a credit check - the Wise multi-currency account.

Learn more about Wise

What is ClearScore? An overview

ClearScore is a UK-based financial technology company, although it operates in Australia, Canada and South Africa too. It reportedly has over 19 million users worldwide.¹

The company specialises in providing consumers with access to their credit score and report, for free. But it also acts as an eligibility checker tool, so you can see what financial products you’ll be accepted for.

You can search the market and apply for credit cards, loans and car finance directly through ClearScore, with the company receiving a commission from the lender when you take out a product. It’s not a lender itself, but an independent credit broker.

How does ClearScore work?

When you create an account with ClearScore, you’ll get access to a free credit score and report. This is updated weekly. You can also check it in the ClearScore app.

ClearScore isn’t a credit referencing agency (CRA) itself. It uses data from Equifax, one of the UK’s leading CRAs, to generate your report.²

Your credit report is a record of all your financial activity, both past and present. Your credit score will usually be between 0 and 999 (or 1000). The higher your score, the more likely you’ll be accepted for the best credit cards, mortgages, car finance and loans on the market.

Lenders can access your credit report information when you apply for products such as loans, credit cards, mortgages and car finance. When they do this, it’s called a credit check.

This is why it can be useful to be able to access your own credit report. You can check how lenders see you as a potential customer, and make improvements to your credit score if needed.

This is another feature of ClearScore, as it offers help and support in improving your score.

It also offers pre-approved credit offers and recommendations, personalised to you. So, you’ll be able to apply for products with more confidence.

What’s included in a ClearScore credit report?

Your ClearScore credit report will include detailed information on how you manage your finances. This includes the following:³

• Personal information - including name (and any other or changes of name), date of birth, current and past home addresses.
• Accounts - all of your open and closed credit accounts - including loans, mortgages, overdrafts and credit cards. This also includes things like bank accounts, mobile phone contracts, broadband contracts and utilities accounts (e.g. electricity, gas and water).
• Financial connections - such as joint bank accounts or mortgages shared with another person.
• Payment history - including missed or late payments
• Bankruptcies, individual voluntary arrangements and court judgements (CCJs) for non-payment of debts
• Electoral roll details
• Recent enquiries and credit checks.
• Protection - any active Cifas Protective Registration or fraud warnings.

Your ClearScore credit report will also show you any recent changes or updates, along with insights to tell you what could be affecting your score.

What can you do with a ClearScore account?

Here are the main features you’ll be able to access when you sign up for a ClearScore account:

• Check your ClearScore credit score
• See your credit report, updated weekly
• Receive personalised recommendations and offers for financial products
• Find and apply for credit cards and loans
• Check your eligibility before applying for products
• Use ClearScore Protect to access a free ID monitoring report and check the security of your passwords with a quarterly dark web scan.

How much does ClearScore cost?

It’s free to sign up for an ClearScore account, which gives you access to your credit score and report.

ClearScore Protect is also free, but you can also upgrade to ClearScore Protect Plus for £4.99 a month.⁴

This gives you round-the-clock identity protection, on top of free credit report access. ClearScore will use advanced web scanning to locate breaches of your personal data. You’ll also get daily updates on your credit report, and cover in case of identity loss.⁴

Open a Wise multi-currency account

Not all financial accounts require a credit check. This usually means a quicker account opening process, and no extra records appearing on your credit history.

With a Wise multi-currency account online once you fund it your account, you cannot run over your account balance. ,All you need to do is verify your identity, which is required under UK anti-money laundering laws.

Join Wise today

You can verify your identity quickly and easily in the Wise app, using just a photo of your ID and a selfie.

Wise may request additional documents to verify a customer's identity"

Once your account is open, you’ll be able to send, spend and convert between 40+ currencies. You’ll benefit from low, transparent pricing and mid-market exchange rates. And you can do it all in just a few clicks or taps, online or in the Wise app.

There’s even a Wise card for convenient, low-cost spending worldwide, available for a one-time fee of just £7 - and again, no credit checks.

Please see the Terms of Use for your region or visit Wise fees & pricing for the most up-to-date information on pricing and fees.

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And that’s it - all you need to know about what ClearScore is and how it works.

It’s not the only company you can use for accessing your credit report, but it is completely free. This means you can check in on your credit score without paying a penny.

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Sources used:

1. ClearScore - About Us
2. ClearScore - Help - Where does the credit data come from?
3. ClearScore - Help - What information is in my credit report?
4. ClearScore - ProtectPlus
5. ClearScore - Credit Scores

Sources last checked on date: 24-Jul-2023