Apple Pay Later is a popular buy now, pay later (BNPL) payment service that many people use. But if you’ve been relying on the service so far, you might want to think twice before using it next time. Starting today, pay later loan information will be on your credit report.
Apple and Experian announced in a blog post that later payment information will begin to appear on Experian credit reports. Experian explains that starting today, the information will be added to customers’ credit reports and will be available by BNPL designation from March 1.
Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, said the move is about transparency:
We designed Apple Pay Later with our users’ financial health in mind, and an important part of that was making sure their loans were reflected in their overall financial health. By reporting Apple Pay Later loans to Experian, we aim to help promote transparency and responsible lending for borrowers and lenders, while providing users with the opportunity to further build credit.
Experian notes that Pay Later loan information “will not be factored into existing traditional credit scores.” Currently, it is just a way for lenders to view a customer’s BNPL history. However, it added that the information could impact future credit scores as “new credit scoring models are developed.”