Momentum Builds for Buy Now, Pay Later Loans to be Used in Credit Histories
Posted on 12/31/2021
Buy now, pay later (BNPL) loans are services sold by firms like PayPal Holdings, Affirm Holdings, Afterpay, and Klarna. BNPL loans are also called point-of-sale loans because they are typically offered at checkout. These updated versions of layaway plans are being available through online portals and mobile apps.
BNPL loans will soon be added to credit reports in 2022. Affirm reports some loans to Experian. Credit bureau Equifax will add BNPL information for the first time. Equifax will begin recording these installment plans on reports in early 2022. Currently, some BNPL companies do report some loan information to certain credit bureaus.
