Underunderstood
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Report Now, Score Later
🕑 Added 2022-03-11 04:49:05 +0000 UTCThere might be a new factor in your credit score.
Show notes:
- Consumer Financial Protection Bureau: What is a credit score?
- NerdWallet: What Is Buy Now, Pay Later?
- NerdWallet: Buy Now, Pay Later Is Everywhere. Should You Opt In?
- ForbesAdvisor: TransUnion Follows Equifax’s Move To Include Buy Now, Pay Later Data In Credit Reports
- @shondamartin_ on TikTok: GET IN HERE WE NEED TO TALK‼️
- The Financial Brand: ‘Buy Now, Pay Later’ Is Now Officially Mainstream: What It Means for Lenders
- Consumer Reports: I Bought a Burrito From Chipotle in Four Easy Payments
- The Wall Street Journal: How to Prepare for Buy-Now-Pay-Later Purchases Showing Up on Credit Reports
- @shondamartin_ on TikTok: Klarna said NAW, we already know better 😭
Comments
Michael
Great episode and great discussion of Shonda Martin's Tiktok! I'd agree with you guys that these loans will most likely be calculated using a different formula than what is used for credit card and long term loans. Many years ago I worked as a consultant with one of the credit agencies as they were rolling out a new tool to assess creditworthiness using not just the conventional credit score but also your spending patterns (i.e., using bank records and/or shopping categories from credit cards to determine creditworthiness). The amount of thought and attention put into setting this up was amazing--while you can say the credit industry is pretty unethical in a lot of what it does, you can't say they're bad at what they do.
