Using Affirm's BNPL Plan Could Now Affect Your Credit Score

If you've recently used Affirm to make a buy now, pay later purchase, or plan to in the future, that activity could now appear on your credit report. The BNPL service announced it will provide information on all payment activities for its installment loan products issued on or after April 1, to the credit bureau Experian. Credit reporting agencies receive a record of your transactions, debt and payment history from credit card issuers, banks and commercial lenders to determine your creditworthiness. But unlike borrowing from other traditional financial institutions, BNPL was typically left off credit reports. Affirm is the first major BNPL provider to report these popular short-term loans -- which provide convenient, interest-free pay-over-time options -- to the credit-reporting system. Experian says the move will help lenders make informed decisions about extending credit and help you build your credit history. But is this change good news for you? And how will it affect your finan ... Read full article.