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Experian and Apple today announced that Apple Pay Later loan information will soon appear on Experian's credit reports. The companies said this move will provide "greater transparency" and help to protect both lenders and borrowers.

Apple-Pay-Later.jpeg

Apple Pay Later loans initiated today onward will appear on a customer's Experian credit report with a BNPL ("buy now, pay later") designation starting March 1, according to Experian. This information will have no effect on a customer's credit score right now, but Experian says it could in the future, as new credit scoring models are developed.

Apple provided more details in a support document updated today:
Apple Pay Later loans and payment history will be reported to Experian. Your credit score won't be affected when we start sharing your Apple Pay Later loan and payment history, but might be affected in the future once data is incorporated by credit scoring models, like FICO®. Information about your purchase, like the loan start date, loan amount, loan status, outstanding balance, payment dates, and payment history will be shared, which will help to build your credit history. If your purchase is canceled or fully refunded, the loan will not be reported.
Experian is the first credit bureau that will report Apple Pay Later loans, and the information will eventually be visible to lenders performing hard inquiries.

"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," said Jennifer Bailey, Apple's vice president of Apple Pay and Apple Wallet, in a press release.

Apple Pay Later launched in the U.S. last year, and it allows qualifying customers to split a purchase made with Apple Pay into four equal payments over six weeks, with no interest or fees. The feature is available for eligible purchases between $75 and $1,000 made on an iPhone or iPad on most websites and apps that accept Apple Pay.

Article Link: Apple Pay Later Loans Will Soon Appear on Experian Credit Reports
 

spazzcat

macrumors 68040
Jun 29, 2007
3,727
4,896
This is going to kill peoples credit scores when a new account pops up for every purchase you make.
I'm not sure why you think that; short-term loans will be off in a couple of months, which will boost most people's credit score. I guess if you have several open at one time, it would be an issue.

What exactly is the point of this, instead of just putting the purchase on your Apple Card (or other credit card?)
No interest loan that is forced paid off in a couple of months.
 

Mr. Chewbacca

macrumors 6502a
Apr 27, 2010
886
91
Dallas TX
I miss the days when you actually took out a mini loan for phones and computers. My condo was paid off, cars bought with cash, and I had the same 2 cc that were paid. On one level that is a stretch financial goal. Problem was that my credit was too thin with little activity. Those paid off loans helped to boost my score.

I get the feeling that this will not be as beneficial but it would be cool if it was.
 

frozencarbonite

macrumors 6502
Aug 3, 2006
371
77
Well it looks like I'm done using Apple Pay Later. It was nice while it lasted.

I collect vinyl. So I only used it for box sets that would pop up for preorder. If you don't buy when it goes up, it usually sells out and will cost way more. The Apple Pay Later was great for this. Bummer.
 
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bradman83

macrumors 6502a
Oct 29, 2020
965
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Buffalo, NY
This is going to kill peoples credit scores when a new account pops up for every purchase you make.
New credit only makes up 10% of the FICO calculation, so while it could be a negative hit it's not going to completely tank a score. Experian may also have special consideration for these since they're short term obligations.

On the flip side for people with limited credit activity the added payment history can start to build their credit up.
 
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mikebenton

macrumors regular
Sep 14, 2009
113
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I don't see any upside for a consumer. You paid your 6-week loan for $100 off on time....here's a $40k auto loan. This is going to mostly be about NOT paying your 6-week $100 loan off on time, where it will most certainly be used to deny credit for larger purchases. Having a new account will ding your score, but not by much. If folks have multiple BNPL's, I hope it shows as a single consolidated entry instead of each one as a separate entry. Having several new accounts will not be good for your score.
 
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jonnyb098

macrumors 601
Nov 16, 2010
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Michigan
This is going to kill peoples credit scores when a new account pops up for every purchase you make.
Don’t think those people care? It’s essentially free stuff. Most BNPL plans don’t get paid or are in some kind of default. But Apple gets their money no matter what since it’s a third party loan essentially
 

frozencarbonite

macrumors 6502
Aug 3, 2006
371
77
This whole BNPL thing is such a steaming pile of garbage scam. Most will never get paid leading to even more economic issues
It's been a great option for myself. The payments are processed automatically, so I don't even have to worry about it. No late or missed payments. And it doesn't "sting" so much at the time of checkout.

But like anything nice in this world, it's probably been abused. This is why we can't have nice things.
 

unobtainium

macrumors 68030
Mar 27, 2011
2,614
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Interest free loans are a no brainer if you have to make a large purchase, even if you have funds available. It’s better to leave your cash in an interest-bearing account until your payment is due…

Obviously this is very different for loans that accrue interest (or credit card purchases that you can’t afford to pay in full each month).
 
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cardfan

macrumors 601
Mar 23, 2012
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Interest free loans are a no brainer if you have to make a large purchase, even if you have funds available. It’s better to leave your cash in an interest-bearing account until your payment is due…

Obviously this is very different for loans that accrue interest (or credit card purchases that you can’t afford to pay in full each month).

Most don’t do this though. But what’s more of a no brainer is taking a discount at purchase instead and using a cc with rewards.

No doubt apples bnpy is at full msrp. No discount. It’s for poor people with bad credit that want to stay poor by making more poor choices. . When this pops up on credit report it’s already a negative because of the nature of bnpy being for less credit worthy people.
 

BigBellyBelcher

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Feb 26, 2024
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burgman

macrumors 68030
Sep 24, 2013
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Most don’t do this though. But what’s more of a no brainer is taking a discount at purchase instead and using a cc with rewards.

No doubt apples bnpy is at full msrp. No discount. It’s for poor people with bad credit that want to stay poor by making more poor choices. . When this pops up on credit report it’s already a negative because of the nature of bnpy being for less credit worthy people.
The moralistic slime on the floor here is silly, but predictable on MR. Everything is assumption because scoring models don’t exist yet, like the article says. Don’t let that stop you😂
 
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