On Monday, Equifax started adding “pay-in-four” installment loans to its credit reports. Experian and TransUnion said they would roll out similar developments this year as well.

Why should we care?
Though it’s made BNPL services a potentially severe source of debt for vulnerable consumers, BNPL’s lack of credit implications has been a unique selling point—until now. A third of millennials using BNPL have failed to make an on-time payment; BNPL’s integration into Equifax could negatively impact the kinds of loans struggling BNPL customers can access. On the other hand, BNPL now also functions as a way for consumers with shaky credit histories to get back on track. “They can build their credit by taking out buy-now-pay-later loans, paying the installments in full and on time and putting themselves in a position to have more financial flexibility in the future,” said Mark Palmer, a fintech analyst and managing director at BTIG. But Palmer’s prescription is easier said than done. BNPL’s function as an onramp for healthy credit will require transparent information and explicit instructions; at this juncture, BNPL players have little incentive to change their messaging.