BNPL to be used in credit reports

Consumer debt has increased and is becoming a bigger problem for customers, as was previously predicted, due to the dramatically increased popularity of consumer financing and BNPL lending. People are worried that BNPL will become a significant issue in the future because it is already affecting credit history and score in many cases. Recent studies reveal that 30% of consumers are concerned about Buy Now Pay Later loans being reported to the credit bureaus.

Many people use BNPL loans, and it is anticipated that the consumer base will expand even further. Because it provides clients with the quickest and most comfortable experience and makes it much simpler for them to buy items online with the many BNPL offerings, consumer finance has become the most popular throughout a pandemic and has become established in the customers’ habits. This has turned into the cause of the recent rise in loan rates, particularly among the younger generation, where the majority of customers choose consumer finance over conventional bank offers of credit cards or personal loans. According to data from 2022, a significant number of people use consumer financing and BNPL loans.

What made it Problematic?

Consumer credit is without a doubt a crucial problem-solving tool for everyone, yet it is still posing issues for BNPL consumers. So what exactly is the issue? As it appears, some Fintech companies that provide consumer financing lack transparent information prior to application, and many clients have already complained that they cannot even see the payment plan they use for repayment or even know how much money they owe the companies until they check their status. In addition, many businesses charge greater costs, and penalties for late payments can be as high as 30–40%. This is problematic, especially for the majority of BNPL lending customers, who are Millennials and Gen Zers.

What can be done?

What then can be done to fix the issue? Regulating businesses with high fee rates and pointless fines has already begun to address the issue in several countries. Some businesses prioritize acquiring customers, therefore they neglect to evaluate a customer’s credit score or repayment capacity, which is becoming problematic for customers. The decision by many countries to regulate BNPL lending and consumer financing, in general, had a positive effect in many instances.


Financing Platform of ChargeAfter

Not all Fintech businesses put a higher priority on customer acquisition than on the caliber of their goods. As previously said, BNPL lending plays a critical role in the financing sector as a problem-solver. Therefore, serving customers and merchants and providing them with the greatest solutions and experiences has become the primary focus for certain businesses, such as ChargeAfter.

ChargeAfter is a global leader in consumer financing, offering customers the best possible payment plan and the most relevant solution for their needs. ChargeAfter’s global financing platform is designed to assist clients in avoiding any potential credit problems in the future, as opposed to leaving customers with unresolved issues. The platform’s transparency, the best Buy Now Pay Later alternatives accessible, and the absence of most fees are the key factors in its success. Instead of the high fees, the platform is getting revenue from the merchants, who can use the platform and get more consumers and boost their sales.

Should the BNPL be Included in Credit Score

On the one hand, it is clear that unpaid loans from client finance and BNPL lending have become a major issue for consumers, but on the other, it is also true that they can help purchasers manage the amount of credit they receive. So, it is safe to state that the unregulated businesses were the ones causing issues on the market, and the new legislation will make it much easier for all consumers who utilize consumer finance to make purchases using BNPL. Of course, it should be recorded in the consumer’s credit history, otherwise, they will continue to receive BNPL loans until repayment becomes almost impossible. Just the amount of fees that businesses can charge customers must be restricted and the credit history of the consumer should be checked during the point of sale when the BNPL services are offered.


In conclusion, we can say that including BNPL lending or other consumer finance history in credit score is not a problem, but a problem solver itself. Consumers should place a high priority on the BNPL service’s quality while making their choice to avoid problems in the future. When compared to other consumer finance organizations, ChargeAfter offers services free of charge, and the Waterfall financing smart system will help customers choose the most appropriate lender and payment plan with the completion of just one application. Obtaining BNPL credit may become more challenging in the future, but with improved firms and laws, it will be simpler for consumers to avoid massive debt.


About ChargeAfter

ChargeAfter is a leading multi-lender platform for Buy Now pay later (BNPL) Consumer Financing. It connects businesses with the most reliable lenders, enabling them to offer customers the greatest financing solutions. With the best system of Waterfall Financing, ChargeAfter guarantees BNPL lending to every shopper, by matching the most relevant lender to every client. Using the unique consumer financing technology, ChargeAfter provides all parties, merchants, lenders, and consumers, with the best shopping experience. Phoenix, MUFG, VISA, Bradesco, BBVA, Synchrony, PICO Partners, CITI, Propel Venture Partners, Plug and Play, and other companies worldwide are among the investors of ChargeAfter.