Apple’s buy-now-pay-later service will report customer data to Experian, in a ‘very positive first step’ for consumers

Users of Apple’s
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buy-now-pay-later platform will soon have their payment history reported to one of the major credit bureaus, but it won’t affect their credit scores — at least not yet. The announcement marks the latest move by credit bureaus to gradually incorporate buy-now-pay-later data into their models as this type of debt becomes more popular. 

Apple Pay Later, launched last March, allows users to pay off a purchase in four payments over six weeks. Starting March 1, Apple customers’ loan information will appear on their credit reports with Experian
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one of the three major credit-reporting agencies.  “While consumers will be able to see their Apple Pay Later loan information on their Experian credit report, the information won’t be factored into existing traditional credit scores but may in the future as new credit scoring models are developed,” according to the credit bureau. The move comes as new research has shown that many buy-now-pay-later customers use the payment method because they believe it will help them build credit, which is largely not the case. Apple sending data to Experian could ultimately benefit consumers who make payments on time, one expert said. “Apple’s move to send buy-now-pay-later loan information to Experian is a very positive first step,” Ed deHaan, a professor at the Stanford Graduate School of Business, told MarketWatch.  So far, buy-now-pay-later loan information has mostly not shown up on credit reports. Affirm
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reports monthly …

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