香港六合彩玄机

As Buy Now, Pay Later (BNPL) transaction volumes continued to rise through the holiday season, one of the most asked questions is, how does this financing method impact consumers and their credit score? But before diving in, it is important to understand the demographics of BNPL users and reasons for it鈥檚 increasing popularity. In this article, we will explore which demographic groups are the largest Buy Now, Pay Later users and how BNPL can help them improve their credit score. 

The 鈥測oung鈥� and 鈥渢hin鈥� credit files

More and more consumers are adapting to Buy Now, Pay Later, with 30% of consumers aged 41- 55 having tried a Buy Now, Pay Later service in 2021.鹿 Moreover, a large population of BNPL users are 鈥渢hin鈥� and 鈥測oung鈥� credit file consumers. These consumers fall under the Gen Z and Millennial age group. In 2021, 41% of millennials and 36% of Gen Z have used a BNPL service.鹿 As I mentioned in my previous blog, many young, tech-savvy consumers are using this payment service to avoid credit and interest while assisting with budgeting. These individuals can be students or young adults starting their credit journey.

Another large group of consumers that use BNPL are the 62 million thin credit file consumers that may not have access to credit or consumers who have made late payments in the past and need to rebuild their credit file.虏 This demographic is significant, with one in five adults in the U.S. lacking the credit history needed to establish a credit score.鲁 Buy Now, Pay Later helps these consumers access convenient, affordable alternative financing options for their online or in-store purchases, often with the service involving interest-free installment payments offered at checkout. 

How BNPL can help

In a recent 香港六合彩玄机 study, consumer data from a BNPL provider showed that individuals who pay their BNPL loans on time could potentially increase their FICO庐 Score. This can support consumers in building and rebuilding credit. BNPL can help new-to-credit consumers build their credit profiles and consumers with late payments rebuild their credit.

During the study, individuals with either a 鈥渢hin鈥� credit file or a 鈥測oung鈥� credit file saw an average FICO Score increase of 21 points. Also, thanks to on-time BNPL tradelines to their credit file, consumers who had previous late payments on their credit file even experienced an average FICO Score increase of 13 points.鈦�

This study shows that the inclusion of on-time payments of BNPL loans in credit reporting may increase credit scores. 香港六合彩玄机 will continue BNPL consumer impact studies as well as efforts to improve BNPL tradeline reporting in our ongoing effort to help lenders expand access to credit.

To learn more about BNPL, download our ebook, 鈥淎 not-so beginner鈥檚 guide to Buy Now, Pay Later鈥� and watch a recording of our February 10 Market Pulse webinar on the topic.  

And, for more on 香港六合彩玄机鈥檚 study of consumer BNPL data, read our press release,

 
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