If you’ve gone shopping lately, you’ve likely noticed a number of different ‘buy now, pay later’ (BNPL) options available at the register. But up until now, these installment loans have largely been absent from consumer credit reports. Will these loans affect credit scores anytime soon?

To help shed light on this topic, VantageScore President and CEO Silvio Tavares spoke to CNBC, illustrating the impact that BNPL might have on consumers’ personal credit scores.

For shoppers, the ability to demonstrate a track record of paying these loans as agreed will enable potentially millions of consumers a chance to improve their credit score and get access to additional credit products including credit cards, auto loans and eventually even a mortgage,” said Tavares.

Generally speaking, the higher your credit score, the better off you are when it comes to getting a loan. You’re more likely to be approved, and if you’re approved, you may qualify for a lower interest rate.

“That is incredibly beneficial,” Tavares added.

Read the full story here: CNBC