Credit Scores and Buy now Pay later

Your “buy now, pay later” purchases likely won’t factor into your credit scores for now

More Americans than ever are using “buy now, pay later” programs to purchase everything from clothes to couches and even takeout, but now some of the biggest providers are pushing back on plans to include it in your credit score.

The short-term loans from providers like Affirm, Klarna and Afterpay split payments into smaller installments. But these loans have largely remained out of credit scores, which lenders use to determine a borrower’s creditworthiness.

The three big U.S. credit bureaus — Experian, Equifax and TransUnion — announced earlier this year they would start including “buy now, pay later” loans in the calculation of credit scoring.

But for now Affirm is the only major BNPL provider currently reporting that data to the credit bureaus.

Officials with both Klarna and AfterPay are pumping the brakes over uncertainty about whether it will help or hurt consumers’ scores, even if they’re making on-time payments.

More Information at:
https://www.msn.com/en-us/money/personalfinance/your-buy-now-pay-later-purchases-likely-wont-factor-into-your-credit-scores-for-now/ar-AA1KJ1SF?ocid=BingNewsBrowse