Affirm Holdings, Inc. (NASDAQ:AFRM) shares are trading higher on Wednesday after the company announced it is set to expand its credit reporting to Experian.

What To Know: Beginning April 1, Affirm will report all pay-over-time products, such as Pay in 4, to Experian, in addition to the longer-term installment loans the company already reports. This new policy will allow consumers to see all Affirm loans issued from April 1 onward reflected on their Experian credit file.

The new reporting will not be calculated into consumers' credit scores, at least initially.

"Affirm operates on the principles of transparency and putting consumers first, which is why we have been actively engaged with Experian and across our industry to build upon our credit reporting practices," said Libor Michalek, President at Affirm.

"Having all loans reflected in a consumer's financial profile will help protect and empower borrowers. The buy now, pay later industry must evolve from simply providing flexible payment options to helping consumers build their credit histories and better manage their finances, and we are pleased to be taking this step with Experian."

Following the announcement, Compass Point analyst Giuliano Bologna upgraded Affirm from a Neutral rating to a Buy rating and raised the price target from $61 to $64.

AFRM Price Action: At the time of writing, Affirm shares are trading 6.77% higher at $46.63, according to data from Benzinga Pro.

Image: Courtesy of Affirm, Inc.