Apple Pay Later Loans Will Soon Appear on Experian Credit Reports

Experian and Apple today announced that Apple Pay Later loan information will soon appear on Experian's credit reports. The companies said this move will provide "greater transparency" and help to protect both lenders and borrowers.

Apple Pay Later loans initiated today onward will appear on a customer's Experian credit report with a BNPL ("buy now, pay later") designation starting March 1, according to Experian. This information will have no effect on a customer's credit score right now, but Experian says it could in the future, as new credit scoring models are developed.

Apple provided more details in a support document updated today:

Apple Pay Later loans and payment history will be reported to Experian. Your credit score won't be affected when we start sharing your Apple Pay Later loan and payment history, but might be affected in the future once data is incorporated by credit scoring models, like FICO®. Information about your purchase, like the loan start date, loan amount, loan status, outstanding balance, payment dates, and payment history will be shared, which will help to build your credit history. If your purchase is canceled or fully refunded, the loan will not be reported.

Experian is the first credit bureau that will report Apple Pay Later loans, and the information will eventually be visible to lenders performing hard inquiries.

"By reporting Apple Pay Later loans to Experian, we aim to help promote greater transparency and responsible lending for both the borrower and the lender, while providing users with the opportunity to further build their credit," said Jennifer Bailey, Apple's vice president of Apple Pay and Apple Wallet, in a press release.

Apple Pay Later launched in the U.S. last year, and it allows qualifying customers to split a purchase made with Apple Pay into four equal payments over six weeks, with no interest or fees. The feature is available for eligible purchases between $75 and $1,000 made on an iPhone or iPad on most websites and apps that accept Apple Pay.