Clarity Services is a company that collects data on near-prime and subprime consumers, as well as those with limited or no credit history. This data is used to create credit reports regulated by the Fair Credit Reporting Act. According to a Federal Reserve Board publication, around 32 million American adults lack traditional credit scores due to limited or no credit history with reporting agencies.
The goal of Clarity is to improve financial access for consumers without typical accounts found on credit reports, such as mortgages, credit cards, and personal loans. In 2017, Experian, one of the major U.S. credit bureaus, acquired Clarity.
Clarity’s data shows when consumers use alternative financial services like check-cashing outlets, money orders, and payday loan stores. This alternative credit data includes sources such as cash flow, rental payments, and verified income. Lenders have the option to use Clarity’s data alongside traditional credit reports when evaluating credit card and loan applications, providing a more comprehensive view of an applicant’s financial background.
If you have used alternative financial services reported to Clarity, you may have a Clarity credit report. You can request your report and score online, by mail, or by calling (866) 390-3118. While Clarity’s credit score differs from traditional scores like FICO or VantageScore, it can still be useful for educational purposes, especially for those looking to establish or rebuild credit. However, not all lenders use Clarity’s data, so eligibility for loan products is not guaranteed.