Paying on time should count

By Libor Michalek, President of Affirm

Forty million Americans have repaid each and every Affirm payment on-time and in full across 450 million loans totaling $140B. That's no accident. When they choose Affirm, they're choosing certainty. They know what a purchase will cost, that the cost won't go up, and exactly when they'll be done paying. That's responsible financial behavior, and it should count.

For a long time, the credit system hasn't been set up to see or understand BNPL payment activity. The loans are short, often totaling hundreds of dollars rather than thousands, and people can have several at once. Reported one purchase at a time, they can look like a surge of new credit applications. Left out entirely, they leave lenders guessing what someone's repayment habits are. Neither approach is fair for consumers.

The good news is that the system is changing. Affirm has been reporting repayment activity to credit bureaus. That has meant that people can see their payment plans in their credit history.

The credit bureaus are now offering lenders new BNPL attributes. They're designed to include any BNPL provider that chooses to participate, rolling up a person's loans into one snapshot showing how much they owe, how they've managed their payments, and whether they've paid on time or late. Lenders see the big picture, while the details stay on people's own credit reports.

And for Affirm consumers, that picture will look strong, because the vast majority pay us back on time.

We worked hand-in-hand with the bureaus to shape these attributes so they reflect how BNPL actually works. It's a step we've pushed for, because we believe more transparency makes credit work better for everyone.

What it means for people

When someone applies for credit, like a car lease or a loan for a home renovation, lenders look at their whole credit history. Lenders that use these new BNPL attributes will be able to see how someone manages BNPL loans, including payments made on time or late. An honest record is what makes a good record count.

These attributes don't factor into FICO or VantageScore scores yet. That's the next step, and we're working with FICO and the credit bureaus to get there. Our2025 study with FICO of more than 500,000 Affirm customers found that including BNPL loans could raise scores for many people. Most people in the study with five or more recent Affirm loans saw their scores rise or stay the same.

What should come next

We believe:

• Every BNPL provider should report accurately. A picture that includes only some providers isn't complete.
• These loans should be treated in a way that reflects how they actually work.
• People should get clear explanations before changes take effect, not find out from a surprise on their credit report.

Paying on time should count. Getting there takes the whole industry.