COSTA MESA, Calif.–One issue credit unions have been warned about in recent years is that data related to BNPL borrowings isn’t shown in credit reports. But Experian is reporting a step toward making at least some of that information more readily available, even if it won’t be factored into scores at this point.
According to Experian, it will now include “pay-in-4” BNPL loan information from Apple Pay Later on consumers’ credit reports, making Apple the first major BNPL provider to fully furnish “pay-in-4” loan information and payment history directly to the credit reporting agency.
“Experian is committed to driving transparency in the BNPL industry and doing so in a way that doesn’t inadvertently negatively impact consumers,” the company said. “Given this, Apple Pay Later loans borrowed today onward will appear on a consumer’s Experian credit report with a BNPL designation starting March 1. While consumers will be able to see their Apple Pay Later loan information on their Experian credit report, the information won’t be factored into existing traditional credit scores but may in the future as new credit scoring models are developed.”
Experian said when BNPL account information becomes more widely reported by additional BNPL providers, a consumer’s BNPL history will be visible to lenders who request an Experian credit report, “enabling lenders to make more informed decisions when determining whether to extend credit offers.”
‘Financial Health in Mind’
“We designed Apple Pay Later with our users’ financial health in mind, and an important part of this is ensuring that their loans are reflected in their overall financial profiles,” said Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet. “By reporting Apple Pay Later loans to Experian, we aim to help promote greater transparency and responsible lending for both the borrower and the lender, while providing users with the opportunity to further build their credit.”
‘Greater Transparency’
Added Jennifer Schulz, CEO of Experian North America, “Experian has long supported the use of expanded data sources, including BNPL information, to help consumers build their credit profile and improve their financial health. We applaud Apple for taking this meaningful first step and look forward to working with other leading BNPL providers to drive greater transparency that will benefit lenders and consumers alike."
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