Let’s find out if Clearpay Do a Hard Credit Check. If you need this information now, then read on.
But before we begin, it’s important to understand how Clearpay operates, including its credit checks, payment structure, and responsible usage guidelines.
Clearpay and Credit Checks: Soft vs. Hard
One of the many concerns people have whenever they’re applying for any financial service is the potential impact on their credit score. With Clearpay, you’re in a safe hand. Clearpay does not perform a hard credit check during application process.
Most of the time, hard credit check, often associated with loan applications; and this can cause a temporary dip in your credit score.
Clearpay’s no doing hard credit checks is a good thing for those mindful of their credit health. However, Clearpay does conduct a soft credit check.
Unlike a hard credit check, a soft check doesn’t require your explicit consent and doesn’t affect your credit score. It provides lenders with a broad overview of your credit history and is commonly used to assess your repayment capabilities.
How Clearpay Works
Upon approval for a Clearpay account, you will have the ability to make buy things and divide the payments into four equal installments over a six-week period.
This approach can make your budgeting more manageable and provide flexibility for you if you want a spaced-out payment structure.
It’s also worthy to note that Clearpay transactions do not accrue interest charges. This is a significant advantage compared to some other credit-based financing options.
However, you need to take caution. Clearpay does impose a late payment fee of £6 if you fail to make a payment on time. This underlines the importance of staying organized and meeting your payment commitments.
Responsible Usage and Considerations
Clearpay does offer a convenient way to shopping, but it’s very important to approach this service responsibly. Remember, Clearpay is a form of credit, and like any financial platform, it should be used carefully.
Conclusion
Clearpay’s approach of not conducting hard credit checks during the application process is a good one. However, note that they will perform soft credit check. Also read their terms and conditions as these can change over time.
