Buy now, pay later Loans will soon appear on credit reports

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Buy Now, Pay Later (BNPL) loans are growing in popularity as they offer a convenient way to pay off larger expenses over time. These loans have not previously been reported on consumer credit reports. But that should change.

Buy now, pay credit later are attractive. Some of these loans offer a 0% limited interest rate, while others offer low interest rates. Consumers can pay off debt in regular installments and spread the cost of expensive purchases.

As many BNPL services do not do a hard credit check for approval, this is an excellent credit option for those with minimal credit history. These consumers may find it more difficult to obtain approval for other financial products, e.g credit cards.

We conducted a survey to examine the popularity of BNPL services. We found that Over half of Americans have taken out BNPL loans and these services are becoming increasingly popular.

Typically, these loans have not appeared on credit reports. However, all three credit bureaus recently announced plans to include buy now, pay later, payment and account details, and activity in consumer credit reports. But that won’t be an overnight change.

For this reason, BNPL loan data was not reported earlier

BNPL service activities have not typically been reported on credit reports as this type of data does not fit well with the current analysis system revolving credit and long-term loans such as mortgages and car loans.

Since the BNPL services are installment loans, some consumers take out multiple BNPL loans per year. With most current lending models, taking out multiple BNPL loans could be considered risky. For this reason, the inclusion of such activities in credit reports could disadvantage consumers.

However, industry experts believe consumers should be able to benefit from using BNPL services and have a chance to improve their credit rating by making responsible choices with these loans. This includes making regular, timely payments and repaying BNPL loan balances.

While credit bureaus will be reporting this data soon, they intend to take steps to protect consumers from the potential immediate negative credit score implications of including such data without first adapting the current system.

It will take time for the industry to adapt and make room for BNPL loans, so consumers should not expect immediate changes.

What to expect from all three credit bureaus

Eventually, all three credit bureaus will report some BNPL data, but how they handle that data will differ. Here’s what we know so far:


Experian plans to launch its own product, The Buy Now Pay Later Bureau™, in Spring 2022. This product will contain important BNPL account details. The BNPL data is initially stored separately from Experian’s core Schufa data and can be queried by lenders.


In Q1 2022, Equifax will formulate a standard process for including BNPL data in traditional consumer credit reports. This includes the implementation of a new industry code to classify the industry. In the long term, it is planned to include this data in regular consumer credit reports.


TransUnion recently launched its own new BNPL credit reporting service called Point-of-Sale Suite Solutions. The credit bureau will include BNPL data in its reports. This data appears in a separate part of the credit reports and is made available to lenders.

What this means for consumers

If you use BNPL services, you can expect relevant data to appear on your credit report soon. While it may not happen immediately, it will eventually become a reality.

For consumers who are new to building credit, including BNPL on their credit reports could offer a way to build credit and improve their credit score credit-worthiness. But to benefit, consumers must make responsible choices, such as B. Timely Payments.

No matter what personal finance tools you use, it’s important to make smart decisions and be careful. Do your best not to ignore debt, make late payments, or miss payments.

BNPL loans can be beneficial, but they can cause financial stress if you’re not careful. Only take out BNPL loans if you can afford to make regular payments without neglecting your other financial obligations. Always consider how your actions affect your financial well-being.

If you’re looking for tips and guides on how to improve your finances, check out ours personal financial resources.

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