Buy Now, Pay Later shows up nowhere on the credit report you're working from, but it can still tank your client's score while you're mid-repair. In this episode of Credit Repair Business Secrets, Daniel Rosen shows Credit Heroes how to catch it first.Join Our FREE Start Repairing Credit Challenge: HERELast year, FICO built two new credit scores just for Buy Now, Pay Later data. The bureaus asked the lenders to send it. Affirm agreed, but Klarna and Afterpay refused and told reporters they're holding back until they're sure the model won't punish their own customers for paying on time. That leaves a hole in the credit report you build every client plan on, and no clean way to know how big it is.It moves in only one direction, and that's the whole problem. Pay six plans perfectly and you get nothing for it; miss a single one and it can roll to collections and sit on the report for seven years. On top of that, the billing-dispute protection you'd expect disappeared when the CFPB pulled its pay-in-four rule, so the file you're diagnosing has pieces missing and no label telling you where.The good part is that once this surfaces, it's ordinary dispute work you already know how to do, and most of your competition isn't looking for it yet. A Buy Now, Pay Later balance usually lands as a collection, which means the FDCPA and FCRA apply and you can ask for validation the way you would on any other account. Three questions on your intake form catch it before you ever quote a client a timeline, so a $90 jacket from last year never undoes months of work.Tune in! P.S. Join the #1 event to grow your credit repair business: http://creditrepairexpo.com/ Key Takeaways:00:00 Intro01:26 BNPL Can Only Hurt Your Score02:48 FICO Built the Fix. Two Lenders Said No03:24 What Klarna and Afterpay Said Out Loud05:02 Pay on Time and Get Nothing05:24 How This Blindsides Your Business07:52 Fact 1. On-Time Payments Don't Report08:52 Fact 2. You Lost Your Dispute Rights09:56 Fact 3. Nobody Can See the Real Exposure11:04 When BNPL Debt Shows Up It's a Collection12:10 How to Fight a BNPL Collection12:50 Three Questions to Ask Before You Quote a Timeline15:08 The Switch Is Coming. Use the Window Now16:20 Final ThoughtsAdditional Resources:Get a free trial to Credit Repair CloudGet my free credit repair training How to Remove Charge-Offs and Collections (The Real Difference Between Them)Make sure to subscribe so you stay up to date with our latest episodes.

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