Story perspectives

Credit Confusion: BNPL Risks and Misunderstood Reports

9/9/2025

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Summary

Story summary

CreditSmart's research shows many misunderstand credit reports, believing hardship arrangements harm scores, which they don't after 12 months.
20% of consumers fail to seek necessary hardship assistance.
Starting June 10, 2025, Buy Now Pay Later (BNPL) services will be recognized as credit under responsible lending laws.
Some BNPL providers report payment histories, risking credit scores with missed payments.
Experts caution that excessive BNPL use can lead to missed payments and credit score damage.

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Story summary

CreditSmart's research shows many misunderstand credit reports, believing hardship arrangements harm scores, which they don't after 12 months.
20% of consumers fail to seek necessary hardship assistance.
Starting June 10, 2025, Buy Now Pay Later (BNPL) services will be recognized as credit under responsible lending laws.
Some BNPL providers report payment histories, risking credit scores with missed payments.
Experts caution that excessive BNPL use can lead to missed payments and credit score damage.