Clarity Services collects your transaction activities to enable you to access loans and financial services if you do not have a (good) credit score.
Oftentimes, individuals get rejected when applying for credit cards because of a low profile which does not necessarily mean you are not worthy but rather because you have not built your score to the extent allowed.
The experience is different with alternate financing methods like buy now pay later apps as they allow you to use their platforms with low profile, thanks to platforms like Clarifty Services that allow them to conduct what is termed soft inquiry that does not impact your credit bureau history.
What is Clarity Services?
Clarity Services is a platform that allows individuals who have little to no credit score with conventional bureaus like Experian, TransUnion, and Equifax to build their credit profiles by collecting information such as payments, loans from small lenders, buy now pay later, rent to own, and related activities.
Clarity Services
Is it Good?
Yes
Build Score?
Yes
Platforms like buy now pay later services for bad credit usually pull your records through soft inquiry by connecting to the data available with Clarity Services to make decisions.
This then allows you to enjoy financial services like everyone with a prime credit score hence, promoting inclusivity.
You might also be curious regarding how it collects the data about you which is then available to financial service providers.
The platform works on an in-and-out model, allowing information to be pulled about you and the service providers also report your activities to Clarity Services.
As you continue to use the services, you also build your credit profile on Clarity and the more you use them positively, you grow your trust level.
How Clarity Services Works
Clarity Services works very similar to the conventional credit bureaus, allowing the retrieval of information, reporting, and giving you a score based on the available data about you.
Take an instance of buy now pay later catalogs that use platforms like Clarity Services frequently:
- When you request a credit from a financial service provider connected to Clarity Services
- The provider will fetch the available record about you from the CS data engine
- Based on the retrieved information and credit score, the financial service provider makes a decision
- If the credit is given to you, it is reported back to the Clarity Services data engine to update your record
- As you continue to repay the funds collected, this will always be reported to CS to help build your profile for higher credit access
- If you default, it also gets reported which could lower your trust level available on your Clarity Services credit report
It might at times show on your credit report but it is not available to organizations as it is usually a soft inquiry-based credit profiling platform.
To build your profile, it takes into consideration activities from platforms like the below:
- Your prepaid card activities like BNPL virtual cards
- Online small-dollar lenders
- Buy here, pay here providers
- Storefront small dollar installment providers
- Rent-to-own usage; for instance, LeaseVille uses Clarity Services to make decisions.
How to Use Clarity Services Freeze Option
Clarity Services has what is called security freezing that ensures you are aware of any data being pulled about you from its records before a loan or a credit request is approved in your name.
This can be useful in avoiding the misuse of your records to get financial service approvals you know nothing about.
Once you have this enabled, your consent will always be needed for every request which relatively could slow the approval process when you are applying for new credits at providers that use Clarity Services data but add some level of security to your records.
Visit its homepage and click freeze
To start the process, simply visit the home page which has quick options for its popular features.
Simply click the “Security Freeze” link and you will be redirected to the appropriate page for your details collection.
Select the ‘Place a Security Freeze’ option
Once you have been redirected to the freeze page, you will see options that include:
- Place a Security Freeze
- Temporary Remove a Security Freeze
- Permanently Remove a Security Freeze
- Forgot PIN
Simply click the first link to open the request form for consent approval freeze activation.
Fill in the required details
Once you click the freeze option, you will then be given a form requesting details that include:
- First, middle, and last name
- Generation (Jr. I, II, etc.): this is optional but only there to indicate if you bear the exact name as your parents, grandparents, etc. If you have the same name as your father, you will be Junior, and vice versa
- SSN and date of birth
- Email and postal addresses
Submit to process the request
After filling out the form, you can click the submit button.
This action will start the freeze application process which will take a few seconds.
If successful, you will get a notification but in cases where further details are required, you will get an indication similar to the one below for you to send supporting evidence.
Usually, you will be required to provide documents that include scanned copies of:
- Copy of Social Security card
- Copy of driver’s license or government-issued ID (passport, state ID card, etc.)
- Proof of your current address
This will be mailed to their office address and will be there treated upon receipt.
How to Opt-Out of Clarity Services
Clarity Services also provides an option to stop your records from being accessed by third parties.
While this is easy to opt out of, it could prevent you from having access to financial services and prescreened offers, especially from providers that rely heavily on Clarity Services for decision-making.
You might want to look at the freeze option if you are considering this because you have seen this in your credit history recently or you are not sure if you need it.
If you want to proceed with this action, you can follow the steps below:
Visit the homepage and click the Opt Out option
To request an opt-out from third parties accessing your Clarity Services records, visit its homepage to see the list of available options.
Simply select the “Opt Out” link and you will be redirected to the page where you can submit the request.
On the Prescreened page, select your preferred option: 5 years or permanent
Once you are on the prescreened page, you will see options that include:
- Opt-out for 5 years
- Opt-out permanently
- Opt-in
You can decide between the first options and if you are unsure of which to choose, you can either go for freezing (recommended) or choose the five-year option.
Fill in the required information
Once you click the “Opt-out for 5 Years” option, a form page will be loaded asking for details that include:
- First, middle, and last name
- Generation (Jr. I, II, etc.): this is optional but only added to specify if you have the same name as your parents, grandparents, etc. If you have the exact name as your father, you will be Junior, and vice versa
- SSN and date of birth
- Email and postal addresses
Submit to start processing
Once you have filled out the form correctly, simply click the submit button underneath to send the details to Clarity Services.
This action will start the opt-out process which will take a few seconds to complete.
Once it is successful, you will be notified but if you need to provide more details, you will get a notification similar to the one below for you to send more information.
Similarly to its freezing request, you will be asked to provide documents that include scanned copies of your:
- Social Security card
- Driver’s license or government-issued ID (passport, state ID card, etc.)
- Proof of your current address
An address will also be given to you (usually, their office) to mail these details to.
Clarity Services Frequently Asked Questions
Here are some frequently asked questions regarding the use of Clarity Services:
Is Clarity Services legit?
Clarity Services is a legitimate company and a part of the broader credit reporting industry.
It is a credit reporting agency that provides consumer credit-related information to businesses, including lenders and financial institutions.
The platform is owned by Experian, one of the major credit reporting agencies.
Who uses Clarity Services?
Clarity Services is used by several financial service providers, including:
1. Buy now pay later companies
2. Lease-to-own services
3. Companies providing buy here pay here financing
4. Medium-sized installment loan providers
5. to large financial services organizations
The platform has more data, especially about people that do not or have little credit profiles with the major bureaus hence, it is a good source of information needed by businesses to decide on giving you credits.
Is Clarity Services the same as Experian?
Not exactly, while Clarity Services is a subsidiary of Experian, it is a specialty credit reporting agency that focuses on alternative financial services, including subprime lending.
So, it is possible to have a better trust level on Clarity Services but a low profile on Experian as both feed on different models.
What is Clarity Services’ credit score range?
Its credit score range is different from the industry standard of 300 – 850, instead, it has 516 – 951.
The maximum credit score on Clarity Services is 951, while the lowest is 516.
Below is a sample Clarity Services credit report:
From the image, you can see the score of the recipient which is given as 807, and the range of possible values from 516 – 951.
Factors simply show the list of items that impact your credit score.
Is Clarity Services a credit bureau?
No, Clarity Services is considered a credit reporting agency.
While it is not as widely known as some of the major credit reporting agencies like Experian, Equifax, and TransUnion, it serves a specific niche in the credit reporting industry.
Lenders and financial institutions may use Clarity Services’ data to assess the creditworthiness of individuals, especially those who may not have a traditional credit history.
How can I improve my Clarity Services credit score?
To improve your Clarity Services credit score:
1. Do not default repayments if your financial service provider uses Clarity for reporting
2. Use more platforms that are integrated into its credit reporting solution and ensure you use them efficiently to grow your score
3. You can also consider alternate financing like buy now pay later electricity bills providers as many of these report to Clarity Services.
Can I use it for monthly payments?
The platform does not provide financing or credits directly rather, companies use it to make decisions on extending services to you.
You cannot use it for payments but it can help you to access payment options.
Is it free to use the service?
It is free to use Clarity Services as a consumer.
You do not need to be aware as it probably already collects your information regarding your transactions, loans, and every other.
It is connected to several traditional channels that directly push individuals’ financial activities to its records which can then be accessed by hundreds of companies that use it for making decisions.
How can I get my Clarity Services credit report?
To get your credit report, simply follow the steps below:
1. Visit the Clarity Services report page
2. You see two options that include one for the full report and the other for the score. Click your preferred
3. Provide the required details, including your SSN and residential address
4. Submit to process
5. If successful, you will be emailed your report but if it fails, you can follow the manual method by sending the request via mail to its official address.
What is Clarity Services’ disclosure?
When applying for credits on platforms that use Clarity Services, you might be presented with a disclosure on conducting a check into your profile before you can be granted the service.
This is needed for the financial service provider to have an idea of who you are and your past financial service usage before it will proceed to make its decision.
With a growing number of financial services, especially those that allow you to shop now and pay later using platforms like Clarity Services, there is no doubt you could be eligible for financing even if you are just starting when it comes to accessing credits.
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