Credit Report to Include Buy Now Pay Later Info
Installment plans are growing in popularity. In response, Equifax announced it will include info about pay-in-4 plans in its credit reports to provide lenders with a more complete picture of consumers’ financial commitments.
Increasingly, retailers offer buy-now-pay-later as a purchase incentive, giving consumers the option to make four payments over time at checkout online and in stores. Offered by Afterpay Ltd., Klarna Bank and others, the payment plans until now haven’t been reflected in credit reports. For responsible consumers with thin credit files or short credit history, this is a smart way to affordably finance purchases—and boost credit scores to enable more borrowing power.