- Affirm Holdings, Inc. (AFRM) will report all pay-over-time loans to TransUnion (TRU, Financial) starting May 1, 2025.
- Initial reporting will not impact traditional credit scores but aims to help consumers build credit histories.
- TransUnion research shows up to 53% of non-users are likely to use buy now, pay later services if it positively impacts credit scores.
Affirm Holdings, Inc. (AFRM), a leading financial technology company, has announced an expansion in its credit reporting efforts by collaborating with TransUnion (TRU). Starting May 1, 2025, Affirm will report all of its pay-over-time products, such as Pay in 4 and longer-term monthly installments, to TransUnion. This strategic move aims to further empower consumers and help them in building strong credit histories.
The initial phase of reporting will not affect consumers' traditional credit scores nor will it be visible to lenders. However, as the credit scoring models evolve, the data could be incorporated to foster more informed lending decisions. Libor Michalek, President of Affirm, emphasized the company's commitment to transparency and consumer empowerment, stating that this initiative aligns with their pro-consumer approach.
Research conducted by TransUnion highlights that nearly 40% of consumers who haven't yet employed buy-now-pay-later services are inclined to use them in the future. This figure rises to 53% if such services could positively influence credit scores. Steve Chaouki, President of U.S. Markets and Consumer Interactive at TransUnion, noted the significance of Affirm’s reporting move, describing it as a milestone for the industry.
