Buy Now, Pay Later (BNPL) options allow you to spread the cost of a purchase over multiple instalments, without any markup. This means if a TV costs £500, you end up paying £500 total at the end of however many instalments your contract is set out for.

‍
This means customers can split their payments into much smaller monthly payments - making a product which was once beyond their means, affordable. This, matched with BNPL options being seamlessly embedded into the flow of most e-commerce and in person stores, makes it extremely convenient for customers - often resulting in major uptake for the products that provide it.

‍

However, it’s still a credit product, meaning some BNPL providers report to a credit reference agency. If you miss a payment, you may be charged late fees or your credit score could be damaged. On the flipside, if you keep up with your payments, they could improve your credit score.

‍

‍

How Does Clearpay Work?

‍

Clearpay is a Buy Now, Pay Later platform that lets users split purchases into four equal fortnightly payments. As long as payments are made on time, there are no interest charges. It’s popular for online shopping and available at major UK retailers like ASOS, JD Sports, and Urban Outfitters.

‍

To use Clearpay, you simply sign up, verify your identity, and then select Clearpay at checkout. Payments are taken automatically from your debit or credit card on scheduled dates. It’s convenient and flexible, but it's not technically a form of regulated credit.

‍

Does Clearpay Report to Credit Reference Agencies?

‍

As of 2025, Clearpay does not report your repayment activity to UK credit reference agencies such as Experian, Equifax, or TransUnion. This means that even if you make all your Clearpay payments on time, it won't help you build or boost your credit score directly.

‍

However, this also means that late or missed payments don’t automatically appear on your credit report - unless the debt is sent to a debt collection agency, which could have a serious impact on your credit history and score. So while there's limited upside for your credit score, the risk of damaging it still exists if the account becomes overdue.

‍

Does Clearpay Perform Credit Checks?

‍

Clearpay does not perform hard credit checks when you sign up or make a purchase. This means applying for and using Clearpay won’t impact your credit score in the same way that applying for a credit card or car loan might.

‍
Instead, Clearpay conducts a soft credit check to verify your identity and assess how risky you are as a credit customer. Soft checks do not appear on your credit file and won’t affect your credit score.

‍

Tips to Build Credit the Best Way in 2025

‍

If you want to improve your credit score in the UK, here are some better alternatives:

‍

• Get on the electoral roll – This helps lenders verify your identity and address.
  
  
• Use a credit builder card – Companies like Capital One and Aqua offer credit cards designed for those with low or no credit.
  
  
• Set up direct debits – Making regular payments on time (e.g., mobile bills, utilities, subscriptions) builds positive history.
  
  
• Limit applications – Avoid applying for too much credit in a short period.
  
  

You can also read our blog on ways to build your credit score the Halal way, if you’re a Muslim concerned about dealing with interest.Of course, there’s no riba involved in any of Ayan’s processes - so if you have a decent credit score, need a car and want to get it financed by a certified Shariah-compliant lender, make your application!

‍

‍