If you’ve been keeping an eye on your credit score like it’s the latest season of your favorite binge-worthy show, you might have heard the chatter about Affirm starting to report to credit bureaus in 2025. For those who aren’t familiar, Affirm is a buy-now-pay-later service that lets you spread out the cost of your purchases into smaller, more manageable payments. It’s like having a magical wallet that lets you snag that new gadget or trendy outfit without feeling the pinch all at once. However, with great power comes great responsibility, and many users are wondering how these small loans will impact their credit scores when they start showing up on their reports.

Imagine your credit score as a high school report card. Each loan, like each class, contributes to your overall grade. If you’re acing your classes (or keeping your payments on time), you’ll likely see a solid GPA. But if you’re juggling too many classes (like multiple small loans), you might start to feel the pressure. So, will these small installment loans clutter your credit report and tank your score? Let’s dig into it.

First off, the good news is that having a variety of credit types—like credit cards, installment loans, and retail accounts—can actually boost your credit score. It shows lenders that you can handle different types of debt responsibly. However, the flip side is that if you take out too many small loans in a short period, it can start to raise red flags. It’s like when your favorite character in a movie starts making questionable decisions; you know something isn’t right, and the consequences might not be pretty.

When Affirm reports to the bureaus, they’ll likely include your payment history and the total amount of credit you’re using. If you’re making your payments on time, that’s a huge plus. But if you have a bunch of tiny loans all sitting on your report, it could give the impression that you’re overextending yourself—like trying to juggle too many balls at once. It might not tank your score overnight, but it could slow your credit-building momentum.

To keep your credit score shining bright, consider keeping your borrowing to a reasonable level. Think of it like collecting action figures: it’s fun to have a few, but if your collection takes over your living room, it might be time to scale back. If you find yourself needing to use Affirm often, try to limit the number of loans you take out at the same time. Also, remember that credit utilization matters; keeping your overall debt low compared to your total credit available is key to maintaining a healthy score.

Ultimately, keeping a close eye on your credit utilization and payment history will be your best defense against a score drop. Make sure you’re paying on time, and if you find that you’re racking up a bunch of small loans, consider saving for that big purchase instead. After all, saving can be just as rewarding as using a buy-now-pay-later service, and it won’t leave you with a stack of loans that could clutter your credit report.

As Affirm gears up to report to credit bureaus, it’s essential to stay informed and manage your loans wisely. Think of it as leveling up in your favorite video game: you want to gather coins, not lose lives. By making smart borrowing choices and keeping your credit habits in check, you can enjoy the perks of using services like Affirm without worrying about your score taking a nosedive.