Buy Now, Pay Later (BNPL) is reshaping how credit works. And as of April 1, 2025, it’s starting to show up on your credit report.
Affirm now reports all BNPL loans to Experian, a move the company says will “help consumers build their credit histories and better manage their finances.”
But not everyone agrees this is a good idea. Klarna, for example, does not report U.S. BNPL activity, arguing that credit bureaus “do not have proper models to responsibly process the data.”
So, what’s really changing—and should you care? Let’s break it down.
BNPL in 2025
Once a niche payment method, BNPL has quickly become a mainstream financial product. It’s now being offered at major retailers and used for everything from electronics to travel bookings.
This increased popularity has pushed regulators and credit bureaus to take BNPL more seriously. As the industry matures, questions about credit reporting, consumer protections, and long-term financial impact are coming to the surface.
According to Ian Moloney, head of policy and regulatory affairs at the American Fintech Council, BNPL is “moving from an emerging product where some of the traditional systems didn’t exactly know how to engage with it” to becoming “an established product.” His comments, shared in an interview with a Payments Dive reporter, reflect the industry’s shift toward mainstream recognition.
But the product still doesn’t fit easily into traditional credit models. “BNPL doesn’t fit neatly with our traditional understanding of credit,” said Ted Rossman, senior industry analyst at Bankrate. He noted that features like frequent account openings and closings—common in BNPL—would normally raise red flags in traditional credit reporting.
Affirm Now Reporting to Experian
As of April 1, 2025, Affirm began reporting all of its BNPL loans to Experian, marking a major shift in how BNPL data enters the credit ecosystem. This move makes Affirm the most prominent U.S. BNPL provider to take credit reporting mainstream.
According to Libor Michaelk, president at Affirm, the goal is to “help protect and empower borrowers,” while also giving consumers the opportunity to “build their credit histories and better manage their finances.”
Experian has framed this development as part of its push for greater transparency. The bureau stated it is “committed to driving transparency in the BNPL industry without inadvertently negatively impacting consumers.”
To that end, while BNPL data from Affirm will now appear on consumer credit reports, it will not immediately affect traditional credit scores. Experian notes that BNPL data could be factored in down the line as new scoring models are developed.
“This is about supporting responsible lending,” said Scott Brown, group president of Financial Services at Experian North America. “Greater transparency in buy now, pay later activity is key to helping consumers build their credit histories.”
How Credit Bureaus Are Handling BNPL
Not all credit bureaus handle BNPL data the same. Here’s a quick breakdown:
Experian
Experian accepts data from BNPL providers that choose to report, like Affirm, and designates these accounts as Buy Now, Pay Later on consumer credit reports. While the data is now visible to lenders, it is not yet included in traditional credit scoring models such as FICO or VantageScore.
Experian notes that BNPL information could influence scores in the future as new models are developed.
Equifax
In 2022, Equifax created a specific business industry code that allows BNPL tradelines to be reported using standard credit reporting formats. According to Mark Luber, Chief Product Officer at Equifax, this ensures that BNPL data is reported as either installment loans or revolving lines of credit—depending on how the provider classifies the product.
TransUnion
TransUnion is also accepting BNPL data, but BNPL accounts are visible only to consumers on their own reports and are not shared with lenders or scoring providers at this time. As a result, BNPL data furnished to TransUnion does not currently affect credit decisions or credit scores.
Should BNPL Be Reported to Credit Bureaus?
As BNPL becomes more common, so does the debate over whether it should be included in consumer credit reports—and eventually factored into credit scores.
The Case for Reporting
Supporters of BNPL reporting say it’s a necessary step toward making short-term credit more transparent and helping consumers build stronger credit profiles—especially those with limited credit histories.
Scott Brown, Group President of Financial Services at Experian North America, believes that “greater transparency in buy now, pay later activity is key to helping consumers build their credit histories and supporting responsible lending.”
The Consumer Financial Protection Bureau (CFPB) has also pushed for BNPL data to be included in credit files. In a 2021 blog post, the agency recommended that consumer reporting companies “incorporate BNPL data into core credit files as soon as possible,” and encouraged the industry to develop standardized reporting formats suited to BNPL’s unique structure.
Ted Rossman, a senior industry analyst at Bankrate, also supports the integration—but with caution. In a March 2024 article, he wrote that BNPL reporting “is a sign of how far the industry still needs to go” and that traditional credit scoring systems are still struggling to accommodate BNPL’s short-term nature. He argues for focusing on payment history rather than penalizing consumers for frequent short-term loans or unclear utilization metrics.
The Case Against Reporting
On the other side of the debate are certain providers like Klarna, who argue that current credit scoring models aren’t equipped to handle BNPL data responsibly. In a May 2024 press release, Klarna stated that credit bureaus “do not have proper models to responsibly process the data and ensure good consumer outcomes.”
Unlike a credit card, each BNPL transaction is individually underwritten. Because of this, Klarna argues that adding these short-term accounts to credit files could lead to misleading credit profiles and lower scores, especially if scoring models treat frequent BNPL usage as risky behavior.
Rossman echoes this concern in his article, noting that BNPL represents a “square peg compared with the proverbial round hole of traditional credit reporting.” Until scoring models evolve, he suggests excluding BNPL from credit utilization and average age of accounts calculations.
Regulatory Shifts
In May 2024, the Consumer Financial Protection Bureau (CFPB) issued a major interpretive rule declaring that BNPL lenders are classified similarly to credit card providers under the Truth in Lending Act. According to the CFPB, BNPL is “often used as a close substitute for conventional credit cards,” which means consumers deserve many of the same legal protections.
Under this rule, BNPL users now have the right to dispute charges and seek refunds from the lender after returning a product—just as they would with a traditional credit card. These protections were previously unclear or unavailable in many BNPL agreements.
The CFPB’s announcement also emphasized that this action is part of a broader effort to bring consistency and accountability to the BNPL industry. It builds on the CFPB’s earlier efforts, including its 2021 market monitoring inquiry, where it called for credit bureaus to incorporate BNPL data into core credit files using standards that reflect the product’s unique structure.
Final Thoughts
With Affirm now reporting BNPL loans to Experian, other providers may choose to follow. Some BNPL activity is beginning to appear on credit reports—though it’s not yet factored into traditional credit scores.
At the same time, credit bureaus are building the infrastructure to handle BNPL data, and regulators like the CFPB are moving to apply existing credit card protections to the product. Regularly reviewing your credit files and checking for updates from your BNPL provider or credit bureau can help you stay up to date.
While many of the details are still evolving, the key takeaway is that BNPL is being treated more like traditional credit—and that could have implications for how it’s viewed by lenders, bureaus, and regulators in the future.
