Buy now, pay later (BNPL) platform Sezzle announced Thursday (Oct. 14) it’s broadening its partnership with credit bureau TransUnion to let users establish and build credit based on their Sezzle repayment history.
Sezzle users who qualify for Sezzle Up will have their repayment histories submitted to TransUnion, giving them a step toward improved financial status.
“The majority of our users are what we at Sezzle call ‘prime-to-be,’ people who may have been left behind — the underbanked and underserved,” said Sezzle CEO Charlie Youakim in the joint announcement. “These are people who are most in need of a financial product that can spread payments out over time without incurring interest.
“Now, in addition to giving users a smarter way to pay, we’ll be able to reward them for their financial responsibility, and in doing so, help them establish and build the formal credit that we know they deserve,” he said.
Sezzle Up will help users increase their spending limits over time and allow them to establish and build their credit by having their payment history posted on TransUnion.
“Credit is a vital tool to not only shape your financial future, but to realize life’s biggest opportunities,” said Liz Pagel, senior vice president of consumer lending at TransUnion, in the joint announcement.
“Through this partnership, Sezzle users will be able to establish their credit and develop healthy financial habits to manage debt responsibly. Consumers will be empowered to gain a better understanding of their financial situation and can take positive steps to build their financial resume,” she said.
Almost one in four (23%) of American adults may need a “second chance” to gain access to the low, affordable payments that a higher credit score would provide, with three out of five (59%) of these people saying they are “very” or “extremely” interested in taking steps to improve their credit.
Almost three-fifths (57%) of second-chance consumers say BNPL is a viable method of boosting their credit scores.