At a Glance

Buy now, pay later (BNPL) services have gained significant popularity in recent years, offering consumers a convenient and flexible way to make purchases. However, many individuals are unsure how BNPL options impact their credit scores. Here are some common questions and concerns regarding BNPL and its effects on your credit score.

In this article, you’ll learn:



The proportion of Americans that used BNPL services in 2022.

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Does buy now, pay later require a credit check?

One of the key advantages of BNPL services is that they typically do not require a traditional credit check. Unlike applying for a credit card or a loan, BNPL providers often use alternative methods to assess a customer’s eligibility. They may consider factors such as income, employment status, and transaction history to determine whether an individual qualifies for their service. This means that using BNPL options generally does not immediately impact your credit score.

Do BNPL services report to credit bureaus?

While BNPL services may not conduct a credit check initially, it’s important to note that they may still report your payment history to credit bureaus. Most reputable BNPL providers do report your payment activity to credit bureaus, such as Equifax, Experian, or TransUnion. This means that if you consistently make payments on time, it can positively impact your credit score. On the flip side, late or missed payments can potentially harm your credit rating.

What happens when you miss your payments

When you miss a payment on a BNPL plan, the consequences can vary depending on the service provider. Some providers may charge late fees or penalty interest, increasing the overall cost of your purchase. Additionally, missed payments may be reported to credit bureaus, negatively affecting your credit score. It is crucial to read the terms and conditions of the BNPL service and understand the consequences of missed payments before opting for this payment method.


As mentioned earlier, BNPL services generally do not require a hard credit inquiry. Hard inquiries can temporarily lower your credit score by a few points, so the absence of such inquiries with BNPL can be advantageous if you’re concerned about your credit rating.

BNPL services themselves are generally safe to use if you choose reputable providers. However, it’s crucial to read and understand the terms and conditions of the service, including any potential fees or penalties for missed payments. As with any financial transaction, exercising responsible borrowing is important and ensuring you can meet your payment obligations.

Whether BNPL is a good idea depends on your personal financial situation and discipline in managing payments. BNPL can offer convenience and flexibility, especially for larger purchases. However, it’s important to consider the interest rates, fees, and repayment terms associated with the service. Carefully evaluate your budget and ability to make timely payments before committing to a BNPL plan to avoid potential negative consequences on your credit score.