If you buy a pair of shoes or makeup and choose the option to pay later, it could show up on your credit report. Affirm will begin furnishing all new loans to Experian, similar to how a mortgage or car loan shows up on your credit report. So far, the change to this fast-growing form of consumer debt only applies to Affirm loans and Experian credit reports. But other lenders and credit bureaus may soon follow suit.
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Your credit report now knows when you buy stuff with the ‘pay later’ option
The consumer watchdog, under previous leadership, has flagged growing concerns about “loan stacking,” where consumers juggle multiple BNPL loans at once. In 2022, 63% of users had more than one loan at a time; 33% had loans across multiple providers.
