ClearScore is a company that helps you access your credit report and score. They are a business that started out in the United Kingdom and expanded to South Africa and Australia. More recently as of 2022, they started operating in Canada. Around the world there are over 20 million users of ClearScore with hundreds of thousands of people accessing their credit score and report on a daily basis.
The primary investors for ClearScore are QED Investors, Blenheim Chalcot, and Lead Edge Capital.
In Canada, over 150,000 users have signed up for ClearScore already and they plan to grow this to millions.
ClearScore Canada offers a snapshot of your personal finance health, it’s free to sign up and use, and you can access your credit report in Canada within three minutes.
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Table of Contents
What is a Credit Score?
A credit score is a number assigned to your financial profile based on your history managing your finances.
Knowing your credit score is an important part of your money management strategy. It is also important if you are planning to apply for a loan in the near future.
Loans such as:
- a mortgage
- a business loan
- credit cards
- car loan
Your credit score is affected by a number of factors, including credit utilization, consistency of payments, and longevity of the credit that you have (which is why many people don’t recommend closing old accounts if they don’t have a fee).
Understanding Your Financial Standing with ClearScore
Which reporting agency does ClearScore use?
ClearScore uses TransUnion (one of Canada’s top credit reporting agencies), the other bureau in Canada is Equifax (used by Borrowell which offers a similar service to ClearScore). It’s helpful to know your score at both bureau’s since there’s often a disparity between the two reporting numbers.
Here’s why there is a difference between the TransUnion and Equifax scores.
ClearScore explains to you what your credit score means, providing clarity on your financial standing to help you make informed decisions so you can plan ahead.
Why is Monitoring your Credit Score Important?
Keeping an eye on your credit score through ClearScore can help you improve your score over time. A better score means you’re more likely to be approved by lenders.
This is especially important if you’re planning to renew your mortgage soon, or if you’re planning to need increased access to credit cards.
Knowing your credit score is useful because if you are applying for a loan (again, for example, if you are financing a car, getting a mortgage, or applying for a business loan) you will want a good or excellent credit score. If you don’t know what your score is, you won’t know if it is good or excellent unless you pay for the credit report or unless you are applying for a loan. And then it might be too late to improve your score, should you find out that your credit score is not up to snuff.
One time I got denied a credit card application because my credit score had decreased quite a bit (I applied for too many cards in a short period of time) and it was a bit of a blow to the ego in addition to my travel plans.
ClearScore’s free credit report offers a transparent view of your financial history, empowering you to take control of your credit health.
How Does ClearScore Canada Work?
Canadians over the age of 18 living outside of Quebec will be able to use ClearScore.
There are over 20 million users around the world who trust ClearScore to protect their credit information.
As mentioned earlier, you can access your credit score in about 3 minutes through ClearScore’s secure platform, because it has direct liaison with major Canadian financial institutions.
Your credit score that you access will be between 300 and 900, with 900 being the absolute best credit score you can get. You want the number to be higher as that will make you more trustworthy to potential lenders.
TransUnion data is updated weekly.
Don’t worry, checking your score (even if you check multiple times a day) does not affect your credit score.
ClearScore also provides you insights as to how to improve your credit score.
For example, for mine, it said to open less credit cards (easier said than done for me haha).
Is ClearScore Safe and Secure?
What about ClearScore’s security and privacy?
ClearScore is legit and safe, as it shields your sensitive data with encryption to keep your data secure.
ClearScore has a 4.4 rating on Trust Pilot.
How Does ClearScore Retrieve Your Credit Score
Ever wondered where your credit score comes from?
ClearScore fetches this number from a trusted reporting agency (TransUnion), ensuring you get an accurate picture of your credit health.
ClearScore’s Features (Like Access to Credit Cards)
What makes ClearScore different from other credit reporting businesses like Borrowell and Credit Karma?
ClearScore focuses on user experience. The interface is quite easy on the eyes and easy to access your current debts (e.g. how many credit cards have money owing and which banks they belong to).
ClearScore also has credit offers. One way ClearScore makes money is by providing affiliate offers, these offers are personalized for you (you have to input additional data like household income etc.) and you are able to compare the different cash back or rewards cards offers.
ClearScore connects you with credit card or personal loan offers that match your financial profile, helping you find the most beneficial options available.
There is also a timeline feature where you can visualize your financial history over time.
Finally a unique aspect of ClearScore is that it has ClearScore Protect.
It’s free to sign up for if you have a ClearScore account and it provides you with free identity protection through scanning the dark web for your passwords that might be stolen.
ClearScore Protect will scan the dark web every three months for stolen passwords associated with your email and notify you if this happens so that you can change passwords to prevent identity theft from occurring.
ClearScore Support and Help
Currently there is a chatbot (virtual assistant) you can use for help with your ClearScore account and you can request further help by providing your name and email to have someone from ClearScore contact you.
ClearScore Canada is based out of Toronto, Ontario.
Getting to Financial Freedom: ClearScore Wrap-Up
Embarking on a journey towards a brighter financial future in Canada starts with making your finances more clear.
By providing essential credit insights and tools to combat identity theft, knowing your credit score can be a tool towards financial freedom.
ClearScore Protect is a unique additional service (that is also free) to protect you from identity fraud which makes signing up for ClearScore quite enticing.
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Have you used ClearScore? What is your ClearScore Canada review?
GYM is a 40 something millennial writing about personal finance since 2009 and interested in achieving financial freedom through disciplined saving, dividend and ETF investing, and living a minimalist lifestyle. Before you go, check out my recommendations page of financial tools I use to save and invest money. Don’t forget to subscribe for a free dividend yield spreadsheet and the free Young Money Bootcamp PDF.