Will Buy Now Pay Later services affect your credit?

Buy Now Pay Later services were quite beneficial for me when my credit wasn’t strong enough to access loans or credit card offers. Being able to make high purchases with just a bit of money upfront and not having to pay the entire balance at once was so nice! What made this service even better was that you didn’t need good credit to use it, and they did not report your loan to the credit bureau.

Buy Now Pay Later services are very popular and common, especially for those with less than perfect credit. Being able to borrow money for items you want with no effect on your credit score has made these services easier to access and more attractive. 

Unfortunately, this is starting to change! Buy Now Pay Later services are beginning to report consumer data to the credit bureaus. While some Buy Now Pay Later services may not report data to the U.S. credit bureau, a few will start reporting soon, if not already.

If you are currently using the following Buy Now Pay Later services, I would recommend doing some research to see if these will soon affect your credit score:

• Zip

• Quad Pay

• Klarna

• Affirm 

• Afterpay

  
  

(It is said that Klarna and Affirm have started reporting to Experian and/or Transunion, so if you use these services, keep an eye on your credit reports.)

Don't Get Caught Up!

My advice is this: if you’re using these services, try to pay them off as quickly as possible to avoid being caught off guard. Even if it doesn’t affect your credit score now, it would still be wise to clear any balances you owe because you never know when you might need to use these services again.

Question: What do you think about BNPL services going to the bureaus? I think that some people might like it because it can increase their credit score. On the other hand, others may not because it could have a negative impact if payments are missed and balances pile up. What do you think? I’d love to hear your thoughts. Let me know in the comments.

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Discipline is Key🗝️

#KeepMoneyNow