New move advances efforts to help consumers build credit histories and support positive credit outcomes
Affirm Holdings, the payment network that empowers consumers and helps merchants drive growth, announced it is expanding its credit reporting to Experian to include all of Affirm’s pay-over-time products beginning April 1, 2025.
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By furnishing information about all of its pay-over-time transactions to Experian, Affirm is helping to drive greater transparency and responsible lending. The industry-leading move will enable consumers and lenders to make more informed decisions and help consumers build their credit histories.
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“Affirm operates on the principles of transparency and putting consumers first, which is why we have been actively engaged with Experian and across our industry to build upon our credit reporting practices,” said Libor Michalek, President at Affirm. “Having all loans reflected in a consumer’s financial profile will help protect and empower borrowers. The buy now, pay later industry must evolve from simply providing flexible payment options to helping consumers build their credit histories and better manage their finances, and we are pleased to be taking this step with Experian.”
“Greater transparency in buy now, pay later activity is key to helping consumers build their credit histories and supporting responsible lending,” said Scott Brown, Group President, Financial Services, Experian North America. “We have a longstanding history working with Affirm and applaud them for expanding the reporting of their pay-over-time products. This is the right thing to do for consumers, the industry and the economy at large. Our role as the first credit reporting agency to establish this partnership with Affirm underscores our shared commitment to improve consumer financial health and foster more informed lending decisions.”
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Beginning April 1, 2025, Affirm plans to report to Experian all pay-over-time loan products issued from that date, including Pay in 4, in addition to its existing reporting of monthly installments of longer-term loans. The new loan reporting will not be factored into consumers’ traditional credit scores in the near term, but may in the future as new credit scoring models are developed.
With the new furnishing policy, consumers will be able to see on their Experian credit file information on all Affirm loans issued from April 1, 2025 onward. As more pay-over-time providers report account information to Experian, lenders who request Experian credit reports will also be able to see consumers’ pay-over-time history.
With these changes, Affirm and Experian aim to help support the responsible extension of credit by enabling lenders to make more informed decisions when determining whether to extend credit offers. Affirm will also work closely with other credit reporting agencies to furnish all loan products.
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Source – Businesswire
