IF you’re one of millions of shoppers using buy now, pay later services, a MAJOR credit report shake-up could be about to affect your finances.
Buy now, pay later (BNPL) is a type of borrowing which lets you make a purchase, but delay paying for it.
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With it, shoppers are able to spread the cost of their shopping out over monthly instalments – and it’s popular because it’s interest-free.
But from this month, these purchases will start appearing on your credit report with one of the UK’s three major credit reference agencies, TransUnion.
The two other major credit reference agencies – Experian and Equifax – are also looking to include BNPL payments on files later this year.
And shoppers will need to be aware of how these changes will affect them, as it could stop you from borrowing money in the future.
Sarah Coles, senior personal finance analyst at Hargreaves Lansdown is part of The Sun’s Squeeze Team, a panel of experts here to help guide you through the worst cost of living crisis seen in decades.
She reveals…
