ATLANTA—Buy now, pay later (BNPL) activity will soon be making its way into consumer credit reports.
Early next year, Equifax said will begin recording installment plans that allow shoppers to make four biweekly payments instead of covering the full cost at checkout.
“This may give lenders a fuller picture of people’s financial commitments, including how much they owe on these plans,” noted the Wall Street Journal.
What were referred to as “pay-in-4” plans—a reference to the four installment payments BNPL solutions typically offer before fees and interest kick in--have exploded in popularity in recent years, reported the Journal, explaining they are often used for small-ticket items such as clothing and makeup and are typically billed directly to a shopper’s debit or credit card.