Experian's credit reports to include Apple Pay Later loan info

With the aim of facilitating greater transparency and responsible credit reporting in the Buy Now, Pay Later (BNPL) industry, Experian has included Apple Pay’s ‘pay-in-4’ BNPL loan information on consumers’ credit reports, making Apple one of the first major BNPL provider to fully provide ‘pay-in-4’ loan information and payment history directly to the credit reporting agency.

Enhancing transparency and credit history reporting

Experian is committed to driving transparency in the BNPL industry in a way that doesn’t negatively impact consumers. Given this, Apple Pay Later loans borrowed since this announcement will appear on a consumer’s Experian credit report with a BNPL designation starting 1 March 2024. While consumers will be able to see their Apple Pay Later loan information via Experian, the information won’t be factored into existing traditional credit scores, but may in the future as new credit scoring models are developed.

When BNPL account information becomes more widely reported to Experian by additional BNPL providers, a consumer’s BNPL history will be visible to lenders who request an Experian credit report — enabling lenders to make more informed decisions when determining whether to extend credit offers.

Officials from Apple said they designed Apple Pay Later with their users’ financial health in mind, and an important part of this is ensuring that their loans are reflected in their overall financial profiles. By reporting Apple Pay Later loans to Experian, they 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’s role as the first credit bureau receiving Apple Pay Later loan information underscores the company’s commitment to drive industry transparency while protecting consumers. Experian has a longstanding history of working with leading BNPL providers and is in active conversations to expand the reporting of BNPL information on consumer credit reports.

Also commenting on this development, executives from Experian said they have long supported the use of expanded data sources, including BNPL information, to help consumers build their credit profile and improve their financial health. They applaud Apple for taking this first step and look forward to working with other leading BNPL providers to drive greater transparency that will benefit lenders and consumers alike.

What does Experian do?

Experian is a global information services company. During life’s big moments – from buying a home or a car, to sending a child to college, to growing a business by connecting with new customers – the company enables consumers and their clients to manage their data with confidence. They help individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organisations to prevent identity fraud and crime.