Buy now, pay later platform (BNPL) Sezzle announcement Thursday, October 14, he broadens his partnership with the credit bureau TransUnion to allow users to 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, which will improve their financial situation.
“The majority of our users are what we at Sezzle call the ‘first to be’, people who may have been left behind – the underbanked and underserved,” said Sezzle’s CEO. Charlie youakim in the joint announcement. “These are the people who most need a financial product that can spread payments over time without incurring interest.
“Now, in addition to giving users a smarter way to pay, we will be able to reward them for their financial responsibility and in doing so help them establish and build the formal credit we know they deserve,” a- he declared.
Sezzle Up will help users increase their spending limits over time and allow them to establish and grow their credit by posting their payment history on TransUnion.
“Credit is an essential tool not only for shaping your financial future, but also for realizing life’s greatest opportunities,” said Liz pagel, senior vice president of consumer loans at TransUnion, in the joint announcement.
“Through this partnership, Sezzle users will be able to build their credit and develop healthy financial habits to manage their debt responsibly. Consumers will be empowered to better understand their financial situation and will be able to take positive steps to build their financial resumes, ”she said.
Related: Second Chance Consumers ‘Deserve to be Trusted,’ Says BNPL Sezzze
Almost one in four American adults (23%) may need a “second chance” to access the low and affordable payments that a higher credit score would provide, three in five (59%) of these people stating that they are “very” or “extremely” interested in taking action to improve their credit.
Almost three-fifths (57%) of second chance consumers say BNPL is a viable method to improve their credit rating.