Even though Buy Now, Pay Later has become a very popular payment option, it hadn’t really caught the attention of regulators and credit agencies until recently. That’s about to change. Credit bureaus in the US are now working to implement credit reporting plans on BNPL loans.
At present, although some BNPL plans for major purchases are included in credit reports, many of the smaller installment plans involving everyday items go by unnoticed, even though they add up to billions of dollars.
In December, Equifax became the first consumer credit bureau to announce that starting this February, it will implement a standardized process for incorporating BNPL transactions – including smaller purchases – in credit reports. Its two major competitors, TransUnion and Experian, aren’t too far behind. They’ve teased their own BNPL approaches, as the regulatory noise around BNPL continues to grow louder.
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