EQUIFAX FORMALIZES INCLUSION OF “BUY NOW, PAY LATER” DATA IN CONSUMER CREDIT REPORTS

EQUIFAX FORMALIZES INCLUSION OF “BUY NOW, PAY LATER” DATA IN CONSUMER CREDIT REPORTS

Equifax has announced its intention to include “Buy Now, Pay Later” (BNPL) payment information in consumer credit reports. BNPL programs, a form of point-of-sale financing, typically involve short term, interest free installment payments offered at checkout. An Equifax study of anonymized consumer data from a BNPL provider indicated that individuals who pay their BNPL loans on time could increase their credit score if those loans were reported to credit agencies. The BNPL trade lines included in the study were reported as revolving line of credit accounts, had five and half months of repayment history reported, and an average utilization rate of 17.9%. According to the study, the inclusion of on-time BNPL payments improved the credit score of a majority of customers, with an average FICO score increase of 13 points. Read More