Experian has announced it will be the first credit bureau to include Apple’s buy now pay later (BNPL) loan information on consumers’ credit reports.
Apple Pay Later loans will appear on consumer’s credit reports with a BNPL designation. At this time, the loan information will not be factored into existing traditional credit scores, but Experian noted it may in the future as new credit scoring models are developed.
Experian added that as BNPL account information becomes more reported by them, lenders will be able to see this on an Experian credit report. They argue this will lead to lenders being able to make more informed decisions on whether to extend credit offers.
“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, 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.”
“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,” said Jennifer Schulz, CEO of Experian North America. "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."