SAN FRANCISCO –Buy now, pay later (BNPL) provider Affirm said that effective May 1 it will report its loans, including Pay in 4 and longer-term monthly installments, to TransUnion. 

 Consumers will see details about all Affirm transactions on their TransUnion credit files, though these transactions will not be factored into traditional credit scores nor be visible to lenders in the near-term, the organizations stated.

“As more pay-over-time providers report account information to the credit bureaus, lenders who request TransUnion credit reports will also be able to view consumers’ pay-over-time history,” Affirm said.

Future Plans

In the future, as new credit scoring models are developed, this information may factor into consumers’ scores, with the aim of supporting more informed lending decisions and helping consumers build their credit histories, Affirm added. 

“Including all loans in a consumer’s credit profile is a crucial step toward making Affirm’s honest financial products even more mainstream,” Affirm President Libor Michalek said in a statement. “.We look forward to TransUnion’s partnership as we continue to drive greater adoption of Affirm and further our position as the most pro-consumer provider in the industry, offering unmatched flexibility and transparency.” 

What Research Shows

TransUnion pointed to research that found nearly 40% of consumers who haven’t used buy now, pay later are likely or very likely to use them in the future. Notably, a higher 53% of non-users would be likely or very likely to use them if it had the potential to have a positive impact on credit scores.