Following this announcement, by furnishing information about all of its pay-over-time transactions to Experian, Affirm aims to drive optimised transparency and responsible lending to its customers.
In addition, the initiative will begin on April 1, 2025, and it is set to enable lenders to make more informed decisions and improve the manner in which clients build their credit histories.
According to the official press release, Affirm is expected to report to Experian all pay-over-time loan products issued from that date, including Pay in 4, alongside its existing reporting of monthly installments of longer-term loans. At the same time, the new loan reporting will not be factored into consumers’ traditional credit scores in the near term, but that is a possibility in the future as new credit scoring models are developed.
With the new policy, consumers will have the opportunity to see information on their Experian credit file on all Affirm loans issued from April 1, 2025, onward. As more pay-over-time providers report account information to Experian, lenders who request its credit reports will also be able to see consumers’ pay-over-time history. Furthermore, Affirm and Experian are set to optimise the process of supporting the responsible extension of credit by allowing lenders to make more informed decisions when determining whether to extend credit offers or not.
As improved transparency in the BNPL activity is key to enhancing the way clients build their credit histories and support responsible lending, the partnership will focus on optimising customer financial health and remaining compliant with the regulatory requirements of the industry as well.
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