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The Typical ‘Buy Now, Pay Later’ Consumer Profile (Equifax Report)

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manfromunkle
Established Member

The Typical ‘Buy Now, Pay Later’ Consumer Profile (Equifax Report)

May 16, 2022

 

BETTER DATA DRIVES SMARTER DECISIONS and can help open the door to new financial opportunities for consumers. That’s why, earlier this year, Equifax became the first consumer reporting agency to formalize a process for the acceptance of ‘Buy Now, Pay Later’ (BNPL) payment information in traditional U.S. consumer credit reports. Equifax believes BNPL reporting can benefit consumers who pay their BNPL loans on time, providing a new opportunity for thin- or no-file consumers to gain access to credit. 

 

Equifax is encouraging BNPL providers to report into Equifax as a powerful source of data. While some higher value BNPL loans were already being reported into the company, the new standards for acceptance are designed to enable the reporting of increasingly popular “pay-in-four” loans. The company will continue to conduct and analyze data on BNPL consumers, how BNPL might impact consumer credit scores as it increases in popularity, and more. Most recently, Equifax has analyzed data from over one million BNPL applications and compared that to the general credit population to learn more about the typical BNPL user.22-106545_USISGEN_BNPL%20Typical%20User%20infographic%20layout.Final

 

EQUIFAX: Breaking it down: The typical BNPL applicant profile (PDF) 


Starting Score: EQ 768 TU 729
Current Score: EQ 823 TU 821 EX 823
Goal Score: ALL ABOVE 800 (Goal met!)


Who knew not opening new credit accounts for 2 years and paying off those credit cards works?


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6 REPLIES 6
SouthJamaica
Mega Contributor

Re: The Typical ‘Buy Now, Pay Later’ Consumer Profile (Equifax Report)


@manfromunkle wrote:

May 16, 2022

 

BETTER DATA DRIVES SMARTER DECISIONS and can help open the door to new financial opportunities for consumers. That’s why, earlier this year, Equifax became the first consumer reporting agency to formalize a process for the acceptance of ‘Buy Now, Pay Later’ (BNPL) payment information in traditional U.S. consumer credit reports. Equifax believes BNPL reporting can benefit consumers who pay their BNPL loans on time, providing a new opportunity for thin- or no-file consumers to gain access to credit. 

 

Equifax is encouraging BNPL providers to report into Equifax as a powerful source of data. While some higher value BNPL loans were already being reported into the company, the new standards for acceptance are designed to enable the reporting of increasingly popular “pay-in-four” loans. The company will continue to conduct and analyze data on BNPL consumers, how BNPL might impact consumer credit scores as it increases in popularity, and more. Most recently, Equifax has analyzed data from over one million BNPL applications and compared that to the general credit population to learn more about the typical BNPL user.22-106545_USISGEN_BNPL%20Typical%20User%20infographic%20layout.Final

 

EQUIFAX: Breaking it down: The typical BNPL applicant profile (PDF) 


Just what you would expect.  Buy Now Pay Later is just another additional path supplied by the financial industry to financial ruin.

 

My advice is avoid such plans, or anything resembling them, like the plague.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 2 of 7
NoMoreE46
Community Leader
Senior Contributor

Re: The Typical ‘Buy Now, Pay Later’ Consumer Profile (Equifax Report)

Thanks for the pdf link.

 

 

Message 3 of 7
manfromunkle
Established Member

Re: The Typical ‘Buy Now, Pay Later’ Consumer Profile (Equifax Report)

Just to dispel the myth that Klarna does not do a Hard Hit on your credit record.

 

They did one on mine.  An online purchase of a $1200 laptop.  Perhaps there is a threshold.

 

 

 

Klarna Credit Check.png

 


Starting Score: EQ 768 TU 729
Current Score: EQ 823 TU 821 EX 823
Goal Score: ALL ABOVE 800 (Goal met!)


Who knew not opening new credit accounts for 2 years and paying off those credit cards works?


Take the FICO Fitness Challenge

Message 4 of 7
MasonK
Frequent Contributor

Re: The Typical ‘Buy Now, Pay Later’ Consumer Profile (Equifax Report)


@SouthJamaica wrote:

Just what you would expect.  Buy Now Pay Later is just another additional path supplied by the financial industry to financial ruin.

 

My advice is avoid such plans, or anything resembling them, like the plague.


This is exactly what I said when Apple announced their BNPL Apple Pay Over Time implementation and sold it to the public as "Teaching responsible spending..."

 

If you can't afford it, you shouldn't be buying it! Whether it's with BNPL or credit cards or a payday loan it all leads to a bad financial place. I know, I was in that place for a very, very, long time. Couldn't agree more with @SouthJamaica on this one.

1/1/16 FICO8 Scores: EX: 407, EQ: 403, TU: 455
1/1/23 FICO8 Scores: EX: 832, EQ: 820, TU: 834
FICO9 EX: 818
Total Revolving Limits: $131,800

Message 5 of 7
azdude480
Established Member

Re: The Typical ‘Buy Now, Pay Later’ Consumer Profile (Equifax Report)

100% on this. Wait it out until you can afford it. Beyond something that can actually earn you quite a bit of money (*cough* house *cough*) why burn extra money for something you don't need to? 

***Lurker since 2012. Member since 2022.***
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azdude480
Established Member

Re: The Typical ‘Buy Now, Pay Later’ Consumer Profile (Equifax Report)

Also, I wonder what the break down might be once you factor in that the Greatest generation is likely retired with some amount of accumulated wealth and savings (and they are probably just simply more content with living with what they have at that stage of their life), and that Gen Z may still be living with the parentals (more and more these days) and not have a need for BNPL. 

But on a more optimistic front, we can also just go with the (probably far-fetched) hope that humans are getting smarter and more disciplined and financially literate. 

***Lurker since 2012. Member since 2022.***
Primary Cards:
Amex BlueAmex EverydayCapital One KohlsCapital One Quicksilver MastercardCapital One Quicksilver MastercardCapital One VentureOneCapital One Walmart MastercardCardless Boston Celtics MastercardCeltic Bank AMC Stubs Visa SignatureChase Amazon Prime Rewards Visa SignatureCiti BestBuy Visa SignatureComenity BH PaybooComenity Sportsmans WarehouseComenity Victorias SecretComenity ZalesCurae Banner HealthDiscover ITDiscover ITGoldman Sachs Apple MastercardGoldman Sachs GM MastercardPenFed Pathfinder Visa SignaturePenFed Platinum Rewards Visa SignaturePenFed PowerCash Visa SignatureSynchrony Bank Verizon Visa SignatureTD Nordstrom Visa PlatinumTD Target MastercardWebBank Dell PreferredWebBank Gemini World MastercardWebBank Petal 2

Authorized User Cards:
Barclays Old NavyCapital One SavorOne MastercardChase Freedom Flex UnlimitedWells Fargo Active Cash

***Total Credit Limit: $272,400***
***In the garden until July 2025.***
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