alt Hacker NewsWhy?
"The industry has long believed that consumers using BNPL responsibly should result in positive credit scores, as the majority of users are paying back in full and on time."
Replies
firesteelrain • yesterday at 1:35 AM
Because it’s shadow debt and it will show the person as overleveraged with a bunch of Affirm loans
Because "most people pay back fully on time" is not the metric.
The real question is what are the delinquency and default rates for BNPL as compared to other forms of consumer credit.
Given the previous understanding that it didn't hit your FICO, the retailer subsidy as a sales lead, and the types of products people were financing.. one might assume worse..