Clarity Services is a consumer reporting agency, owned by Experian, that tracks the kinds of credit the big three often miss. The CFPB describes it as collecting information on “payday loans, installment loans, auto loans (and leasing), check cashing services, rent-to-own transactions, telecommunication account openings, and financial services with an emphasis on the lower-income and subprime consumer market segments” (CFPB). If you’ve applied for an online loan, a payday loan, or rent-to-own financing, there’s a good chance Clarity has a file on you.
This guide explains what Clarity reports, how to get your free report, and how to dispute errors or freeze your file.
Key Takeaways
- Clarity Services is owned by Experian and focuses on subprime and alternative lending.
- You can get one free Clarity report every 12 months, and a free credit score, if you ask.
- You can dispute errors and freeze your Clarity file directly with Clarity.
- A Clarity file is separate from your Experian credit report. Fixing one doesn’t fix the other.
- The CFPB fined Clarity $8 million in 2015, partly for failing to investigate disputes.
What Is Clarity Services?
Clarity Services is a specialty credit bureau for the small-dollar and alternative lending market. Experian announced its acquisition of Clarity in 2018, saying it would give lenders visibility on “more than 62 million consumers who rely on small-dollar loans, point-of-sale financing and auto title loans” (Experian).
Lenders that make payday, installment, title, and other small-dollar loans often check Clarity because their customers may have thin or no files at the big three. Our guide to secondary credit bureaus explains how Clarity fits with the others.
Why Would Clarity Have a File on You?
- You applied for or took out a payday, installment, or title loan.
- You financed a purchase through rent-to-own or point-of-sale financing.
- You opened a phone or other telecom account with a company that uses Clarity.
- A lender checked Clarity when you applied, even if you didn’t get the loan.
If you were denied by one of these lenders and the notice names Clarity, you’re entitled to a free copy of your Clarity report if you ask within 60 days (15 U.S.C. 1681m).
How to Get Your Free Clarity Credit Report
Clarity provides one free report every 12 months on request, plus a credit score if you ask for one (CFPB).
| Method | Details |
|---|---|
| Online | consumers.clarityservices.com |
| Phone | 866-390-3118 (Option 4 for a report) |
| Clarity Services, Inc., Consumer Support Division, P.O. Box 16, Allen, TX 75013 |
How to Dispute Your Clarity Report
Use the same phone number or mailing address to dispute anything inaccurate or incomplete in your Clarity file. Clarity must investigate for free, generally within 30 days, and contact the company that supplied the information (15 U.S.C. 1681i).
Be specific: name the account or inquiry and what’s wrong with it, and include documents if you have them. Clarity can’t require documents before it investigates, though. When the CFPB fined Clarity in 2015, it found the company “failed to investigate consumer disputes, including disputes relating to credit inquiries,” and refused to investigate unless consumers sent supporting documents. The order required Clarity to investigate disputes without those preconditions (CFPB).
Clarity vs. Experian
Even though Experian owns Clarity, they’re separate files. Correcting your Clarity file doesn’t change your Experian credit report, and correcting Experian doesn’t change Clarity. If the same error appears in both, dispute it in both places and with the company that reported it. Here’s how credit bureaus investigate disputes.
Clarity Credit Freeze
Clarity will freeze your file on request. You can request a freeze online at Clarity’s security freeze page or by calling 866-390-3118 (Option 1).
A Clarity freeze stops new lenders from pulling your Clarity file. It doesn’t affect Equifax, Experian, or TransUnion, and it won’t remove anything or help your disputes. Here’s why freezing secondary bureaus doesn’t force deletions. If you rely on small-dollar lenders, remember to lift the freeze before you apply.
The 2015 CFPB Action Against Clarity
On December 3, 2015, the CFPB ordered Clarity and its then-owner to pay $8 million. The CFPB found that Clarity:
- Obtained tens of thousands of consumer reports from other credit reporting companies without a permissible purpose, including for marketing.
- Failed to investigate consumer disputes, including disputes about credit inquiries.
- Refused to investigate disputes unless consumers supplied specific documents.
The order required Clarity to verify permissible purpose before selling reports and to investigate disputes without those barriers (CFPB). Experian acquired Clarity in 2018.
Frequently Asked Questions
Is Clarity Services legit?
Yes. It’s a consumer reporting agency owned by Experian and listed by the CFPB. It must follow the Fair Credit Reporting Act.
Why is Clarity Services on my credit report?
If you see Clarity in your inquiries, a lender likely pulled your Clarity file when you applied for a loan. Match the date to your applications. If you didn’t apply, dispute the inquiry. Our guide to permissible purpose explains when an inquiry isn’t allowed.
Does Clarity affect my FICO Score?
Your FICO Score and VantageScore from Equifax, Experian, and TransUnion are calculated from those bureaus’ data, not from your Clarity file. Lenders that use Clarity may use its own scores in their decisions.
Is a Clarity report free?
Yes, once every 12 months on request, and anytime within 60 days after a lender denies you based on a Clarity report.
What’s the Next Step?
Request your free Clarity report if you use small-dollar or online lenders, or if a denial notice names Clarity. For errors on the reports most lenders use, pull your Equifax, Experian, and TransUnion reports and dispute there.
SmartDispute compares your three main reports side by side and drafts suggested disputes for each bureau and each reporting company, for you to review, change, and mail yourself. See how SmartDispute works.