Buy Now Pay Later Just Got More Real for your Credit Score
Affirm Is Now Reporting All Loans to Experian—Here's What That Means for You
Big news in the world of “Buy Now, Pay Later”...
As of April 1, 2025, Affirm is now reporting all of their Pay Over Time loans to Experian—yes, even those short-term “Pay in 4” plans.
Here's what was happening before:
Affirm only reported some longer-term loans to Experian.
Short-term loans weren't part of your credit history.
That meant no credit score benefit for using it responsibly—and no penalty if you paid late on a short-term loan.
Here's what's happening now:
Affirm is reporting every loan, including short-term ones, to Experian.
Your BNPL behavior now directly affects your credit—for better or worse.
So if you're making on-time payments, you can build your credit.
But here's the twist: it might still hurt you.
How this can backfire:
Using Affirm (or any BNPL) frequently can result in a large number of short-term loans being reported. That increases the number of accounts on your credit report—and lenders might see that as risky behavior.
It also lowers the average age of your credit history, which can drag your score down.
And if your credit mix is mostly BNPL-style loans, it may not reflect financial stability.
Real talk…
Many of my clients are using BNPL to “afford” things they actually can't afford. I get it—life is expensive, and these services make it easy to say yes. But that's exactly the trap. One small purchase turns into four payments... and then four more... and suddenly you're juggling a dozen loans without a clear plan.
It's time to get clear on your budget, align your spending with your dreams, and stop using BNPL unless it's a true investment—and the payment plan genuinely makes sense for your long-term goals.
What about Klarna, Afterpay, and others?
Right now, Klarna, Afterpay, and similar services don't report your loans to the credit bureaus consistently—but that could change. And even if it's not showing up on your credit report yet, it's still real debt. It still impacts your stress, your cash flow, and your ability to create financial freedom.
My take?
BNPL isn't evil. But it needs to be used intentionally, not emotionally.
If you want to stop the cycle, build true financial stability, and take control of your money—I'm here to help.
Ready for a life changing money transformation? Book a discovery call with me and let's see if it's the right fit. You have nothing to lose—except the financial stress you've been carrying for way too long.
Disclaimer: I am an educator, not your personal financial advisor. Please make sure to do your own research before moving forward with any actions discussed in this blog post.
Know that all investments involve some form of risk and there is no guarantee that you will be successful in making, saving, or investing money; nor is there any guarantee that you won't experience any loss when investing. Always remember to make smart decisions and do your own research!