Affirm to Expand Credit Reporting to Include All Payment Plans

Core Insights - Affirm plans to start reporting all of its payment plans to Experian on April 1, expanding its credit reporting to include pay-over-time products alongside existing monthly installment loans [1][4] - The new payment plan types to be reported include biweekly payment plans, Pay in 30 (single installment), Pay-in-2, and Pay-in-6, which were not previously shared with Experian [2] Company Impact - Affirm's President Libor Michalek stated that having all loans reflected in a consumer's financial profile will help protect and empower borrowers, indicating a shift in the buy now, pay later (BNPL) industry towards supporting credit history building [3] - The expanded credit reporting is expected to enable consumers and lenders to make more informed decisions, enhancing financial management for consumers [3] Industry Implications - The new loan reporting will not immediately affect traditional credit scores but may do so in the future as new credit scoring models are developed [4] - Experian's group president, Scott Brown, emphasized that this move will provide greater transparency, aiding consumers in building credit histories and supporting responsible lending practices [5] - FICO is planning to incorporate BNPL data into its credit score analysis, which could potentially raise FICO scores for some consumers and improve risk performance for lenders [5]