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Does Afterpay Affect Your Credit Score?
July 1, 2025
Quick Answers
Using Afterpay for its standard "Pay in 4" plan will not build your credit history, as on-time payments are not reported to the major credit bureaus.
Missed or late payments can negatively affect your credit score, as Afterpay may report delinquent accounts to credit reporting agencies.
Signing up involves a soft credit inquiry that does not impact your score, but other financing products offered by Afterpay might require a hard credit check.
What Is Afterpay?
Afterpay is a "buy now, pay later" service that allows consumers to purchase items immediately and pay for them over time. The platform splits the total cost of a purchase into four equal installments, which are paid back without any interest charges. These payments are typically scheduled to be automatically deducted from your account every two weeks.
When you sign up, Afterpay does not usually perform a hard credit check, which would impact your credit score. Consequently, making your payments on time does not typically build your credit history as the activity isn't reported to the major credit bureaus. However, if you miss payments, you may incur late fees, and this negative information can be reported, potentially lowering your score.
How Afterpay Could Affect Your Credit Score
Using Afterpay for on-time payments typically won't touch your credit score. However, if you fall behind on your installments, it can lead to negative reporting and damage your credit history.
- Miss a Payment: The chain reaction starts with a single missed payment. While this won't immediately appear on your credit report, Afterpay will charge a late fee and may pause your account.
- Enter Default: If you continue to miss payments, your account can go into default. At this stage, Afterpay reserves the right to report your payment history to the credit bureaus.
- Negative Reporting: Once Afterpay reports the default, it becomes a negative mark on your credit report. This entry can lower your FICO score, impacting your ability to secure future credit.
- Sent to Collections: In cases of prolonged non-payment, your debt may be sold to a collections agency. A collections account is a major derogatory mark that can damage your credit for years.
How Much Will Afterpay Affect Your Credit Score?
While Afterpay doesn't perform hard credit checks, its use can still influence your credit score in several ways. Here are a few key factors to consider before using the service.
- Late Payments. Missing a payment can have consequences beyond just late fees. Afterpay may report delinquencies to credit bureaus, which can negatively impact your credit score and history.
- Optional Credit Reporting. You can opt-in to have your payment history reported to credit bureaus. Making consistent, on-time payments could help build a positive credit history over time.
How You Can Avoid Afterpay Affecting Your Credit Score
Make On-Time Payments
The most critical factor is ensuring all your payments are made on time. Late payments can result in fees and may be reported to credit bureaus, which could negatively impact your score. Consider setting up automatic payments to avoid missing a due date and maintain a clean record.
Monitor Your Spending
Avoid overextending your budget with multiple buy now, pay later purchases. Each plan is a form of debt, and taking on too much can make it difficult to manage repayments. Only use Afterpay for purchases you can comfortably afford to pay off within the agreed schedule.
Choose the Right Card to Afterpay
No matter your starting point, improving your credit score is an achievable goal with consistent, positive financial habits. Meaningful changes can often be seen within just a few months.
- Monitor your credit reports. Regularly check your reports from all three major bureaus—Experian, TransUnion, and Equifax—to dispute inaccuracies and catch signs of fraud.
- Establish automatic bill payments. Your payment history is the single most important factor in your score, so setting up automatic payments is a simple way to ensure you're never late.
- Reduce your credit utilization ratio. Aim to keep your credit usage below 30% of your total available credit, as high balances can signal risk to lenders.
- Become an authorized user. You can get a boost by being added to the credit card of someone with a long history of on-time payments and low credit utilization.
- Diversify your credit mix. Lenders like to see that you can responsibly manage different types of credit, such as revolving credit cards and installment loans.
- Limit hard inquiries. Avoid applying for too much new credit in a short period, as each application can temporarily dip your score.
The Bottom Line
Afterpay generally won't impact your credit score if you make payments on time. However, late payments may be reported to credit bureaus, potentially lowering your score in certain situations.
Frequently Asked Questions
Does Afterpay report on-time payments to credit bureaus?
No, Afterpay does not report your positive payment history to the major credit bureaus, so making payments on time will not directly help build your credit score.
What happens if I miss an Afterpay payment?
Missing a payment can lead to late fees. While Afterpay doesn't report this to bureaus, accounts in severe default may be sent to collections, which can harm your credit.
Can using Afterpay help me build credit?
Unfortunately, no. Since Afterpay does not report your payment activity to the credit bureaus, using the service responsibly will not contribute to building your credit history or score.
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