Apple Pay Later loan information will be displayed on credit reports

Officially, Apple Pay Later will be the first pay-it-forward lending program, with data appearing in Experian credit reports. Prior to this, your credit report would not have been affected if you had taken out a short-term buy now, pay later (BNPL) or pay-in-4 (Pi4) loan, such those offered by Klarna, Affirm, or Apple Pay. But things are about to change soon. Experian will add a user’s BNPL information to consumers’ credit reports in collaboration with Apple.

Loans made through Apple Pay Later that are taken out after February 28 will be classified as BNPLs on borrowers’ Experian credit reports. The Apple Pay Later loan information will not now be included in standard credit scores, but it might be in the future when new credit scoring models are developed.

Vice president of Apple Pay and Apple Wallet Jennifer Bailey stated in a statement, “We designed Apple Pay Later with our users’ financial health in mind, and an important part of this is ensuring that their loans are reflected in their overall financial profiles.”

“By reporting Apple Pay Later loans to Experian, we aim to help promote greater transparency and responsible lending for both the borrower and the lender, while providing users with the opportunity to further build their credit.”

In March 2023, Apple Pay Later underwent a soft launch that let a select group of users to make purchases in four equal installments at no interest. That October, the service was officially made available to US-based users.