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FactorTrust is Like the Bureau But Isn’t: Here’s What to Know

FactorTrust records financial activities, especially those of people with low credit profiles which can be accessed by financing providers for decisioning.

Credit card applications may result in rejection for individuals with a limited credit profile, not necessarily indicating unworthiness but rather a lack of an established credit history with the major bureaus.

In contrast, alternative financing methods such as buy now pay later apps utilize different approaches through soft inquiry using platforms like Clarity Services and FactorTrust to understand you before deciding as you possibly have existing records with them if you have purchased or taken credit from a small lender that has them integrated.

What is FactorTrust?

FactorTrust is a credit reporting agency that specializes in alternative credit data and provides information to lenders and financial institutions. Unlike traditional credit bureaus such as Experian, Equifax, and TransUnion, FactorTrust focuses on gathering and analyzing non-traditional data to assess the creditworthiness of individuals.



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It works more on subprime and underbanked accounts, offering insights into consumers’ financial behavior who may not have an extensive traditional credit history.

The agency collects data on various financial transactions, including payday loans, installment loans, and rent-to-own agreements.


Read more about FactorTrust

This alternative credit data helps lenders make more informed decisions about extending credit to individuals who may not be well-represented by traditional credit scoring methods.

The platform functions on a bidirectional model, where it retrieves information about users, and concurrently, service providers relay user activities to FactorTrust.

Through ongoing use of the services, individuals progressively establish their credit profile within the FactorTrust framework.

The more you engage positively with these services, the higher your trust level grows within the FactorTrust system.

How FactorTrust Works


The platform operates similarly to traditional credit bureaus, involving information retrieval, reporting, and scoring based on available data.

How FactorTrust Works

Consider the scenario of lease-to-own furniture providers utilizing platforms like FactorTrust:

  • Credit Request: When you request credit from a financial service provider connected to FactorTrust.
  • Data Retrieval: The provider retrieves available records about you from the FactorTrust data engine.
  • Decision Making: Based on the retrieved information and credit score, the financial service provider makes a decision.
  • Credit Approval: If approved, the credit transaction is reported back to the FactorTrust data engine to update your record.
  • Repayment Reporting: As you consistently repay the funds, each payment is reported to FactorTrust, contributing to the building of your profile for potential higher credit access.
  • Default Reporting: Conversely, defaults or missed payments are also reported, potentially lowering your trust level and it will be reflected in your FactorTrust credit report.


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While it might occasionally appear on your credit report, FactorTrust typically operates as a soft inquiry-based credit profiling platform, meaning that the information is not readily accessible to external organizations.

In constructing your profile, FactorTrust considers activities from various platforms, including:

These diverse sources contribute to the comprehensive assessment of your credit behavior, allowing FactorTrust to build a nuanced profile that reflects your financial activities and creditworthiness.

How to Use FactorTrust Freeze Option


FactorTrust allows you total control of how you want your data to be accessed through what is called security freezing, also known as a credit freeze which is a protective measure that individuals can take to restrict access to their credit reports.

When you place a security freeze on your credit file, it essentially locks down the information, making it more challenging for identity thieves and fraudsters to open new accounts or obtain credit in your name.

While this is a good way to stay protected, you will always need to unfreeze it when you need credit from a provider that uses FactorTrust to make decisions which could make things a little slow.

The below shows the steps on how to freeze your account:


Visit its security freeze page and select “Add Freeze”

To start the process, simply visit its security freeze page which has three options that include:

  • Freeze My Account
  • Manage My Freeze
  • Manage My PIN

Simply click the “Freeze My Account” option and you will be redirected to the form page for your details entry.

Fill in the required details

Once you click the”Freeze My Account” option, a form requesting details that include the below will be displayed:

  • First, middle, and last name
  •  Email Address
  • SSN and date of birth
  • Postal address
  • A yes or no answer regarding if you have lived in the provided address for more than six months



Submit to process the request

After filling out the form, you can click the “Continue to verify my identity” button to proceed.

Initiating this process will commence the application for a credit freeze, and it should be completed within a few seconds.

Upon successful completion, you will receive a notification. However, in instances where additional information is needed, you will be prompted with a message similar to the one below asking you to contact their support.

Usually, it will involve you being required to submit the necessary documents via mail which will be processed once received.

FactorTrust Freeze Notification

For identity verification, you will need to provide a photocopy of one item from each category listed below to FactorTrust via mail:


  • Driver’s License
  • Passport
  • State-issued ID

SSN (Social Security Number):

  • Social Security Card
  • Pay Stub with SSN
  • IRS W2 Form with SSN


  • Utility Bill with Address and Your Name
  • Pay Stub with SSN

Ensure that the copies submitted are clear and legible to facilitate the verification process.

Once you have these put together, you can then mail to the address below:

FactorTrust, Attn: Consumer Inquiries, P.O. Box 390, Woodlyn, PA 19094.

How to Opt-Out or Opt-in to FactorTrust

The platform offers an opt-out feature you can use to restrict third-party access to your records.

Although opting out is a straightforward process, it may limit your access to financial services and pre-screened offers, particularly from providers heavily reliant on FactorTrust for decision-making.

If you are uncertain about the implications or benefits of this choice, you may want to explore the freeze option. This allows you to pause access without permanently opting out.

If you decide to proceed with opting out, please follow the steps outlined below which are the same as for opt-in:


Visit the “Opt-in or Opt-Out” Page and select your preferred option

There is just a single page where you can either opt-in or opt-out from allowing third-party access to your FactorTrust credit profile.

On this page, you will see options that include:

  • Opt-In
  • Electronic Opt-Out for Five Years
  • Permanent Opt-Out by Mail

You can select any of the options that align with what you want to achieve.

Note that the last option that allows for by mail is only needed if you prefer to send the physical copies of the needed documents to FactorTrust’s mailing address.

To opt out, simply click on the “Electronic Opt-Out for Five Years” and to opt-in, select the first option.

Fill in the needed information

Once you click the “Electronic Opt-Out for Five Years” option, you will be redirected to a form page requiring you to provide the details that include:

  • First, middle, and last name
  •  Email Address
  • SSN and date of birth
  • Postal address

Click the “Confirm” button to process it

After accurately completing the form, click the confirm button below to submit the details to FactorTrust.

This will initiate the opt-out process, which should be completed within a few seconds.

Upon successful completion, you will receive a notification. However, if additional information is required or it is unable to locate your file, a notification will come up of the issue which you can resolve through the mailing option.

Similarly to how its freezing request works, you will be required to provide documents that include one copy each from the below category items:


  • Driver’s License
  • Passport
  • State-issued ID

SSN (Social Security Number):

  • Social Security Card
  • Pay Stub with SSN
  • IRS W2 Form with SSN


  • Utility Bill with Address and Your Name
  • Pay Stub with SSN

Once you have gathered the documents, you can then send them via mail to the address below:

FactorTrust, Attn: Consumer Inquiries, P.O. Box 390, Woodlyn, PA 19094.

FactorTrust Frequently Asked Questions

Here are some frequently asked questions about how it works:

Is FactorTrust legit?

FactorTrust is a reputable and legitimate company, functioning as a specialty credit reporting agency.

It specializes in offering alternative credit data to lenders and financial institutions, with a specific focus on consumers who may lack extensive traditional credit histories.

The ownership by TransUnion, a major credit bureau, enhances FactorTrust’s credibility and underscores its standing within the broader credit reporting industry.

What is FactorTrust Risk Score?

The FactorTrust Risk Score is a numerical representation that assesses the credit risk associated with an individual.

It is a proprietary scoring model developed by FactorTrust and it is designed to help lenders and financial institutions make informed decisions about extending credit to consumers, particularly those with limited or non-traditional credit histories.

It considers various alternative credit data points, such as payday loans, installment loans, and rent-to-own agreements, to generate the Risk Score.

This alternative data provides insights into the individual’s financial behavior, allowing for a more comprehensive evaluation of creditworthiness.

The Risk Score is used by lenders as an additional tool to supplement traditional credit scores from major credit bureaus.

It helps them assess the risk associated with lending to consumers who may not have well-established credit histories.

Keep in mind that the specific factors and weighting used in the FactorTrust Risk Score may differ from traditional credit scoring models.

Is it the same as TransUnion?

No, FactorTrust and TransUnion are not the same. They are two separate entities that operate in the credit reporting industry.

TransUnion is one of the three major credit bureaus in the United States, along with Equifax and Experian.

These credit bureaus collect and maintain information on individuals’ credit history, payment behaviors, and other financial activities.

Lenders and creditors use this information to assess creditworthiness when making lending decisions.

FactorTrust, on the other hand, is a specialized credit reporting agency that focuses on providing alternative credit data.

While traditional credit bureaus like TransUnion primarily rely on information from mainstream financial institutions, FactorTrust gathers data from alternative financial sources, such as payday lenders, rent-to-own companies, and other non-traditional credit providers.

This alternative data can be useful for assessing the creditworthiness of individuals who may not have a substantial traditional credit history.

Is it a credit bureau?

FactorTrust operates as a credit reporting agency rather than a credit bureau, distinguishing it from major players like Experian, Equifax, and TransUnion.

Although it may not enjoy the same level of recognition as the more prominent credit reporting agencies, FactorTrust plays a crucial role within a specific niche in the credit reporting industry.

Lenders and financial institutions often leverage its data to evaluate the creditworthiness of individuals, particularly those lacking a traditional credit history.

How can I improve my FactorTrust credit score?

To enhance your FactorTrust credit score, consider the following strategies:

Timely Repayments:
Avoid defaulting on repayments, especially if your financial service provider utilizes FactorTrust for reporting. Consistently meeting payment deadlines can positively impact your FactorTrust credit score.

Leverage Integrated Platforms:
Utilize platforms integrated into FactorTrust’s credit reporting solution. Efficiently manage and use these services to contribute positively to your credit score growth. Maximize the benefits offered by these integrated platforms.

Explore Alternate Financing Options:
Explore alternative financing avenues, such as buy now, pay later services for utility bills. Many of these providers report to FactorTrust, offering an additional opportunity to build a positive credit history.

By implementing these practices, you can actively work towards improving and maintaining a favorable credit score.

Is it free to use the service?

As a consumer, you may not directly interact with FactorTrust or use its services.

However, it operates behind the scenes, often without direct consumer awareness, by aggregating alternative credit data from various sources.

This data is then used by lenders and businesses to make informed decisions about creditworthiness.

Often, businesses pay to use the platform but freezing, opting in, opting out of the service, and getting your credit report as a consumer are free.

How can I get my FactorTrust credit report?

To get your credit report, simply follow the steps below:
1. Visit the ‘Get Your Free Annual Credit Report’ page
2. A page will be opened asking for some information regarding your profile
3. Fill in the needed details, including your social security number, date of birth, and residential address
4. Once filled out, click the next button to continue to the next page
5. Once you click that, you will be emailed your report if records exist for you but if it fails, you will have to send a filled copy of the form and print it out which you can send to their mailing address

Is it owned by TransUnion?

Yes, FactorTrust is a TransUnion-owned company that focuses on alternate credit data reporting.


As the array of financial services expands, particularly those offered by websites that support buy now pay later, there is a need for inclusivity hence,  FactorTrust and similar services facilitate this.

By enabling businesses to access the credit profiles of those with no or very low profiles with traditional credit bureaus, they empower companies with what is needed to decide on offering financing to everyone.

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