How ClearScore May Impact Your Credit Score

Using ClearScore to check your report won't hurt your credit score, as it only performs a soft search. However, applying for credit products through the platform can trigger a hard inquiry from lenders, which does have an impact.

1. Initial Check & Monitoring: Signing up for ClearScore initiates a soft inquiry on your credit file. This type of check allows you to view your own report and score without affecting it, no matter how often you look.
2. Reviewing Credit Offers: The platform presents you with credit card and loan offers based on your financial profile. Simply browsing these tailored recommendations does not impact your score in any way.
3. Applying for Credit: When you decide to apply for a product you see on ClearScore, you are directed to the lender. The lender then performs a hard inquiry to assess your creditworthiness, which is recorded on your file and can cause a temporary dip in your score.
4. Outcome of Application: If approved, the new credit line can initially lower your score by reducing the average age of your accounts. Conversely, multiple applications in a short period, whether successful or not, can lead to several hard inquiries and a more significant score reduction.

How Much Will ClearScore Affect Your Credit Score?

Using ClearScore to check your credit information won't directly lower your score. However, there are a few indirect ways your score could be affected, which are important to understand.

• Soft Inquiries. ClearScore performs a soft search on your credit file, which is only visible to you. This type of check does not impact your credit score, no matter how often you use the service.
• Applying for Credit. If you apply for a credit product through ClearScore, the lender will perform a hard search. This hard inquiry can cause a temporary dip in your credit score, especially with multiple applications.
• Score Fluctuations. Your score can change due to information from lenders, not ClearScore itself. The platform simply reports the data provided to it by the credit reference agencies.

How You Can Avoid ClearScore Affecting Your Credit Score

Understand Soft vs. Hard Searches

Checking your score on ClearScore is a "soft search" that doesn't affect your rating. However, formally applying for credit products results in a "hard search" by the lender. This type of inquiry is visible to other lenders and can temporarily lower your credit score.

Apply for Credit Sparingly

Limit how often you apply for new credit. Multiple applications in a short period can signal financial distress to lenders. Use eligibility checkers to assess your chances before you apply, which helps you avoid unnecessary hard searches on your report from rejected applications.

Monitor Your Report for Errors

Regularly review your credit report for inaccuracies, like accounts you don't recognize. Disputing and correcting errors with the credit reference agency can prevent them from unfairly damaging your score. ClearScore makes it easy to spot potential issues before they cause problems.

Ways to Improve Your Credit Score

Improving your credit score is an achievable goal that can significantly impact your financial well-being. With consistent, positive financial habits, you can boost your score over time, often seeing meaningful changes within three to six months.

• Monitor your credit reports. Regularly check your reports from all three major bureaus for inaccuracies or signs of identity theft that could be dragging down your score.
• Set up automatic bill payments. Your payment history is the most significant factor in your score, so ensuring you pay every bill on time is a critical step.
• Lower your credit utilization ratio. Aim to use less than 30% of your available credit, as high balances can signal financial risk to lenders.
• Become an authorized user. Being added to a credit card account belonging to a trusted person with a strong payment history can help improve your own credit profile.
• Diversify your credit mix. Lenders like to see that you can responsibly manage different types of credit, such as a mix of credit cards and installment loans.
• Limit new credit applications. Each application can result in a hard inquiry that temporarily lowers your score, so it's wise to space them out and only apply when necessary.

The Bottom Line

Using ClearScore involves a soft search on your credit report, which is not visible to lenders and will not affect your credit score, unlike the hard searches from loan applications.

Frequently Asked Questions

Does using ClearScore lower my credit score?

No, checking your report with ClearScore is a 'soft search'. This type of check is only visible to you and does not affect your credit score.

Why is my ClearScore different from other credit agencies?

ClearScore uses data from Equifax. Other agencies, like Experian and TransUnion, use different information and scoring models, which can result in slightly different scores.

How often does ClearScore update my information?

Your ClearScore credit report and score are updated once a month. This provides you with a regular overview of your financial standing and any recent changes.