At Experian, we have long championed the use of expanded data sources, including buy now, pay later information, to empower consumers while enabling lenders to make more informed decisions. However, concerns about the negative impact on consumer credit scores have historically prevented many buy now, pay later providers from reporting account information to credit reporting agencies.
In an important step towards overcoming these challenges and supporting responsible lending, today, Affirm, one of the largest providers of pay-over-time loans, announced it is expanding its credit reporting with Experian.
Greater transparency in buy now, pay later activity is key to helping consumers build their credit histories and supporting responsible lending.
Scott Brown, Group President, Financial Services, Experian North America
Affirm plans to report all pay-over-time loan products issued from April 1, 2025, and beyond, including Pay-in-4. The move will help drive greater transparency into the buy now, pay later market while helping consumers build their credit histories over time.
“Affirm operates on the principles of transparency and putting consumers first, which is why we have been actively engaged with Experian and across our industry to build upon our credit reporting practices,” said Libor Michalek, President at Affirm. “Having all loans reflected in a consumer’s financial profile will help protect and empower borrowers. The buy now, pay later industry must evolve from simply providing flexible payment options to helping consumers build their credit histories and better manage their finances, and we are pleased to be taking this step with Experian.”
Experian is committed to driving transparency in the BNPL industry without inadvertently negatively impacting consumers. Given this, the new loan reporting will not be factored into consumers’ traditional credit scores in the near term but may in the future as new credit scoring models are developed.
With the new furnishing policy, consumers will be able to see on their Experian credit file information on all Affirm loans issued from April 1, 2025 onward. Consumers can receive an updated version of their Experian credit report at no cost daily by enrolling in a free membership and visiting www.experian.com or via Experian’s mobile app.
“Greater transparency in buy now, pay later activity is key to helping consumers build their credit histories and supporting responsible lending,” said Scott Brown, Group President, Financial Services, Experian North America. “We have a longstanding history working with Affirm and applaud them for expanding the reporting of their pay-over-time products. This is the right thing to do for consumers, the industry and the economy at large. Our role as the first credit reporting agency to establish this partnership with Affirm underscores our shared commitment to improve consumer financial health and foster more informed lending decisions.”
As BNPL information is reported to Experian by additional BNPL providers, a consumer’s BNPL history will be visible to lenders who request to view it as part of an Experian credit report–enabling lenders to make more informed decisions when determining whether to extend credit offers.
We look forward to working with other leading BNPL providers to drive greater transparency in the BNPL space that will benefit lenders and consumers alike.
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For an industry focused on identifying and reaching the next generation of homebuyers, I believe that’s an important challenge. And an opportunity. Engage before the application It nearly goes without saying that there are, of course, very real economic barriers to homeownership today. Affordability, home prices, interest rates and saving enough for a down payment continue to weigh on prospective buyers. But there are other barriers we can do more about. Buying a home is complicated, particularly for someone who has never been through the process. Consumers may not know what they can afford, what credit score they need, what information a lender will consider or even whether homeownership is realistically within reach. When consumers don’t have that information, assumptions can fill the gap. That’s why I believe our industry has an opportunity to engage prospective homebuyers much earlier in their journey. 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