Apple will start reporting Buy Now, Pay Later (BNPL) loans to Experian, a major credit reporting agency. This move might help consumers build credit history but could negatively impact credit scores if not managed well. BNPL services, which allow consumers to spread payments over weeks or months without interest, have gained popularity due to their ease and instant gratification. However, the simplicity of these plans can obscure potential pitfalls like steep late fees and over-spending. Although Apple is taking the lead, most other BNPL providers haven’t announced similar plans. Currently, credit scoring models don’t factor in BNPL payments effectively, and while Apple’s BNPL data will appear on Experian reports, it won’t affect credit scores yet. For those looking to build credit, traditional methods like using credit cards responsibly are still the most effective.
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