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Use Apply BNPL (Buy Now, Pay Later) - Is it good or bad for your credit?

Experian, according to reports from IBS Intelligence, has recently unveiled its initiative to incorporate "pay-in-4" Buy Now, Pay Later (BNPL) loan details from Apple Pay into consumers' credit reports. This strategic move aims to enhance transparency and responsible credit reporting within the BNPL industry, making Apple the first major provider to comprehensively furnish information on "pay-in-4" loans and payment histories directly to Experian.


Jennifer Bailey, Apple's Vice President of Apple Pay and Apple Wallet, highlighted the user-centric design of Apple Pay Later, focusing on users' financial well-being. Reporting Apple Pay Later loans to Experian is intended to promote transparency and responsible lending, benefiting both borrowers and lenders while offering users an opportunity to strengthen their credit.


This development, as reported by IBS Intelligence, can have both positive and negative implications for consumers. On the positive side, it can be instrumental in building a positive payment history, particularly for individuals with limited or no credit history. This inclusion in credit reports allows users to showcase their responsible financial behavior.


But please remember to think long and hard before using these types of services often as frequent utilization of BNPL services, including Apple Pay Later, could potentially impact the credit history category negatively, if used excessively. If payments are missed, leading to late pays, it has the potential to damage the credit report and score. It's crucial for users to be mindful of their BNPL usage and ensure timely payments to avoid adverse effects on their creditworthiness.


In its commitment to fostering transparency in the BNPL sector without inadvertently impacting consumers negatively, Experian, as reported by IBS Intelligence, will feature Apple Pay Later loans on credit reports with a BNPL designation starting March 1. As of right now, it appears that Apple BNPL will only be reported to Experian and not the 2 other major bureaus.


As additional BNPL providers report account information to Experian, consumers' BNPL histories will become visible to lenders requesting Experian credit reports. This visibility empowers lenders to make more informed decisions when evaluating whether to extend credit offers.

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