CHICAGO —In a move that will help consumers manage their credit, Affirm Holdings has expanded the credit reporting of its pay-over-time products to TransUnion, the companies jointly announced.
All Affirm pay-over-time loans issued from May 1, 2025 onward, including Pay in 4 and longer-term monthly installments, will be reported to TransUnion, the organizations stated.
“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 companies said.
“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. 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,” the organizations said.
"Affirm is committed to protecting and empowering consumers through our products and practices - from having no late or hidden fees to supporting positive credit outcomes through responsible lending," said Libor Michalek, Affirm's president. "Including all loans in a consumer's credit profile is a crucial step toward making Affirm's honest financial products even more mainstream.”
TransUnion research 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.
“Affirm’s loan furnishing to TransUnion is an exciting milestone for the industry,” said Steve Chaouki, president, U.S. markets and consumer interactive, TransUnion. “Millions of consumers use Affirm’s pay-over-time financing and they deserve to get credit for their payment behavior.”