Affirm to Expand Credit Reporting to Include All Payment Plans

Affirm said Wednesday (March 19) that it plans to begin furnishing information about all of its payment plans to Experian on April 1.

This move will expand Affirm’s credit reporting to Experian to include its pay-over-time products, in addition to the monthly installments of longer-term loans that it already reports to the credit reporting agency, according to a Wednesday press release.

The payment plan types that are not currently shared with Experian, but will be when originated on or after April 1, include biweekly payment plans, Pay in 30 (single installment), Pay-in-2 and Pay-in-6, according to a page in Affirm’s help center.

“Having all loans reflected in a consumer’s financial profile will help protect and empower borrowers,” Affirm President Libor Michalek said in the release. “The buy now, pay later industry must evolve from simply providing flexible payment options to helping consumers build their credit histories and better manage their finances, and we are pleased to be taking this step with Experian.”

The expanded credit reporting will help consumers build their credit histories and will enable both consumers and lenders to make more informed decisions, according to the release.

The new loan reporting will not be factored into consumers’ traditional credit scores in the near term, but it may in the future as new credit scoring models are developed, the release said.

Experian is the first credit reporting agency to establish this partnership with Affirm, per the release. Affirm may furnish information about all loan products to other credit reporting agencies in the future, according to the help center page.

Scott Brown, group president, financial services at Experian North America, said in the release that the greater transparency provided by this move will help consumers build their credit histories and will support responsible lending.

“We have a longstanding history working with Affirm and applaud them for expanding the reporting of their pay-over-time products,” Brown said. “This is the right thing to do for consumers, the industry and the economy at large.”

Analytics firm FICO said in February that it is planning to add buy now, pay later (BNPL) data to its credit score analysis. FICO said it was doing so after conducting a joint study with Affirm and finding that the inclusion of BNPL data could raise FICO scores for some consumers and improve model risk performance for lenders.

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