| BNPL provider | Can it affect your credit score? | Does it perform a hard credit check? | Will it report missed payments? |
|---|---|---|---|
| Afterpay | No | No | No |
| Zip Pay | Yes | Yes | If you default on a payment |
| Zip Money | Yes | Yes | If you default on a payment |
| Klarna | Yes | Only if you apply for a financing option | Yes |
| Humm | Yes | On purchases over $2,000 | Yes |
| Brighte | Yes | Yes | Yes |
| PayPal Pay in 4 | Yes | Yes | Yes |
| StepPay (CBA) | Yes | Yes | Yes |
1. If it performs a hard credit check
2. If it reports late or missed payments
When you apply for a credit product, the provider will normally perform either a soft or hard credit check before it approves you. A soft credit check will not show up on your credit report and won't affect your credit score, whereas a hard credit check can.
The other way a BNPL provider can affect your credit score is if you fail to make a payment by more than 14 days.
Some BNPL providers will report these missed payments to the credit reporting bureaus that calculate your credit score. Any missed payments that are recorded on your credit report can also damage your score.
For example, Afterpay does not perform a hard credit check when you apply and won't report late payments, so using Afterpay won't affect your credit score.
However, other BNPL providers may perform hard credit checks or report missed payments, both of which can have a negative impact on your credit score.
There is no credit check before you sign up for Afterpay and using it won't affect your credit score.
Afterpay also won't report late payments to the credit report bureaus, which means if you miss an Afterpay payment, it won't appear on your credit report and won't impact your credit score.
This could leave you in a tight spot later down the line when applying for more significant loans, like a mortgage. But it's up to Afterpay if it chooses to pass on this information to third parties.
As long as you're using Afterpay in a responsible way and making your payments on time, then your credit score and history shouldn't be affected directly.
Zip Pay affects your credit score if you don't pay your bills on time or default on your repayments.
It will also check your credit score when you apply for the service, so it's important to keep an eye on your credit score if you want to use Zip.
You shouldn't have any issues as long as you're responsible with Zip and are making payments on time.
Owned and run by Zip, the same company as Zip Pay, Zip Money operates similarly but is used for larger purchases over $1,000.
As such, the same rules apply here. It will run a credit check to make sure you're safe to lend to and your score should only be affected if you miss your payments.
While BNPL providers like Afterpay don't have a direct impact on your credit score, using these services can still hurt your credit rating if they get in the way of you paying off other bills on time.
Finder research found 29% of Afterpay and BNPL users had missed another bill payment because they had to pay off a BNPL debt first. 12% had even skipped a meal because of the money they owed on their BNPL account.1
With 43% of Australians using Afterpay and other BNPL services, according to the Finder Consumer Sentiment Tracker, it's important you don't use it to take on too much debt. Even if the service might not hurt your credit score directly, it can still have a wider impact on your finances.
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