Clarity Services by Experian: What it is, how it works

If you’re ready to open your first credit card or get a loan, one of the most important things a lender will check is your credit score. When you have a thin credit file or no credit at all, that can be a real roadblock to borrowing.

Experian Clarity Services eases the path to alternative financing access for people may have limited experience using credit. If you’re wondering how it works or how it might benefit your credit situation, this guide breaks down everything you need to know.

A 5-step guide to Clarity Services by Experian

  1. What is Experian Clarity Services?
  2. How does Clarity Services work to create credit reports?
  3. How does Clarity Services benefit consumers?
  4. Are there downsides to Clarity Services to be aware of?
  5. How can you make the most of Clarity Services?

What is Experian Clarity Services?

Clarity Services is an alternative credit reporting service that’s designed to help people with limited credit history. It’s the largest Fair Credit Reporting Act-regulated credit bureau to focus on the subprime segment.

“Clarity focuses on data reporting for underbanked, near-prime and subprime consumers because they have minimal recorded data and assessing their creditworthiness proves to be a challenge for lending institutions,” says Alpa Lally, vice president, data business, at Experian Consumer Information Services.

The use of nontraditional data for credit reporting is a relatively new idea that’s steadily moving into the mainstream.

“We’re seeing increased awareness in the value of alternative data among credit reporting agencies, lenders, credit building services and consumers,” says Sanjoy Malik, CEO of data aggregator Urjanet. “This alternative data has shown to be an effective method to build or restore a good credit history.”

That’s important for people who may want to pursue traditional borrowing options but have found the door closed to them. The goal of Clarity Services is to help lenders better understand who these consumers are and offer appropriate financing solutions, says Lally…Read more>>