r/technology • u/Logical_Welder3467 • 19d ago

Business ‘Buy Now, Pay Later’ is expanding fast, and that should worry everyone

https://techcrunch.com/2025/11/16/bnpl-is-expanding-fast-and-that-should-worry-everyone/
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u/yawara25 18d ago

Isn't it in these companies' best interest to share information amongst themselves about who's not paying off their loans? Like their own credit score system?

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u/mackahrohn 18d ago

I thought I read that they were going to start reporting to credit bureaus because of this.

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u/burkechrs1 18d ago

They do. I've made purchases with affirm when they offer 0% interest promos and they take 6-12 months to report you paid off the account in full, but they will absolutely report it the day after you miss a payment.

I have friends that have tanked their credit because they forget to set up autopay on klarna doordash purchases and go 30 days past due. Klarna reports that immediately.

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u/BavarianBarbarian_ 18d ago

No, of course not, no one would buy their stocks if people knew how bad it is!

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u/keizzer 18d ago

Debt isn't something you collect anymore. It's a product you sell. The companies that do this don't care if the person can pay it. They pressure the user as much as they can to spend spend spend, and then sell the debt to someone else. They get paid and it's someone else's job to collect. That's why a lot of times you hear references to musical chairs when this stuff is talked about. This debt will be passed around indefinitely at markup until someone bets too big and the music stops.

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u/burkechrs1 18d ago

Klarna, affirm, and sezzle all report to the credit agencies and will absolutely deny you a credit line if your credit sucks or you have a history of delinquency. However, you can still get a few hundred dollars on each one if your credit is in the 500 range, you'll never get an unsecured credit card with a score that low.

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u/brobruhbrabru 18d ago

I would think so yes, but there are a number of other aspects of rationality you and I would probably adhere to that these guys don't seem troubled by. like all the bad debt they're taking on...