We can now see how Buy Now Pay Later for Credit Union borrowers is impacting their credit reports. There was a big upload of Buy Now Pay Later (BNPL) agreements to the credit bureau at the end of January. These data are now returned to our decision engine.
Currently BNPL does not have an impact on credit scores.
NestEgg analysed the results of BNPL accounts held by applicants to credit unions across February. This is what we found out:
- 11% of loan applicants to credit unions had a BNPL agreement
- The average monthly repayment was £38
- The average amount owed was £42
- Applicants with an income under £1,500 owed 14% more
- Outstanding balances are projected to rise 13% by May
The graph above shows the outstanding balances on each day in February (dark blue) and repayments (light blue). Almost all BNPL agreements were ‘buy now, pay in three instalments’ deals.
The impact of Buy Now Pay Later for Credit Union borrowers is just one of many lending insights provided by NestEgg. Sign up below to get these straight to your inbox.