Seeing the Customer More Clearly

A credit score can tell part of a customer's financial story. But it rarely tells the whole story. For the millions of Americans with thin files, past stumbles, or financial lives that don't fit a conventional template, that single number can mean the difference between getting what they need and being turned away at checkout.

At Koalafi, we've always believed responsible access to lease-to-own starts with understanding the whole person behind the application, not just a three-digit number. Our aim is to make decisions that reflect a more complete picture of each applicant’s financial circumstances, so more people can confidently get what they came for, and merchants can complete the sale.

That conviction is the foundation of ClearFit, our proprietary underwriting platform, and it has guided our approach to underwriting since Koalafi was founded.

A clearer picture of every applicant

ClearFit builds a comprehensive view of every applicant by evaluating more than 5,000 data points across credit, cash flow, identity, device, fraud, and behavioral signals. Rather than relying primarily on a traditional credit score, ClearFit helps determine not only whether to approve an applicant but also an approval amount that aligns with that customer's ability to repay. The result is a more precise, right-fit decision for every applicant.

The more complete picture is meaningful. Approximately 1 in 10 approved Koalafi customers has no valid credit score.¹ For those applicants, a credit score alone offers little insight. ClearFit provides the additional context needed to make informed decisions.

The same depth of information matters just as much when a score does exist, since two applicants with similar scores rarely share the same financial reality. ClearFit's broader set of signals helps distinguish between them quickly, with the entire process taking less than 8 seconds on average, enabling customers to get the information they need to move forward, without slowing the checkout experience.¹

For the non-prime customers Koalafi serves, these additional signals are often the difference between a right-fit approval and a decline. ClearFit enables a decision that reflects the unique applicant, not an average of everyone who happens to share their credit score.

Why it matters for merchants

For merchants, the value of better underwriting isn't simply higher approval rates. Better decisions are more likely to set the customer up for success.

When approvals align with a customer's ability to repay, shoppers can complete their purchases using payment options that fit their financial circumstances. That creates better customer experiences, stronger long-term lease performance, and a lease-to-own partner that merchants can rely on through changing economic conditions.

"Our team continuously refits ClearFit's models as consumer behavior and economic conditions evolve," said David Hicks, Chief Risk Officer at Koalafi. "That ongoing work helps us make more precise decisions and better align approvals and approval amounts with each customer's unique financial circumstances, so the intelligence behind every decision reflects how people are actually living and spending today."

At Koalafi, understanding the customer has always been the foundation of better underwriting. ClearFit powers that approach, helping us make more precise decisions that create better outcomes for merchants and their customers.

Approval, approval amount, and lease-to-own terms are not guaranteed and depend on each applicant's qualifications.

¹ Internal Koalafi data. May vary by merchant, channel, and time period.