Consumer Finance and Debt

Affirm has begun piloting a buy now, pay later (BNPL) option that lets U.S. tenants split their monthly rent into two equal biweekly payments at 0% interest, underwritten through a partnership with New York–based Esusu, which reports payment data to major credit bureaus. The pilot, whose duration and potential expansion plans Affirm has not disclosed, offers no‑fee loans to approved renters but effectively adds another layer of short‑term credit into housing costs. Consumer‑finance experts quoted in the piece warn that BNPL, already used by tens of millions of Americans for everyday purchases, can lead to confusion, missed payments, and credit damage when borrowers juggle multiple loans—risks that become more serious when tied to rent and housing security. They also caution that the option could tempt some renters to stretch for higher rents by smoothing payments, increasing the odds of overextension if incomes are unstable. The move comes as CFPB data show rapid growth in BNPL use and regulators scrutinize how these products are underwriting, reporting to credit bureaus, and handling delinquent borrowers.