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Does Shop Pay Affect Your Credit Score?
July 1, 2025

Quick Answers
Utilizing Shop Pay’s standard "Pay in 4" installment option will not affect your credit score, as it does not require a hard credit inquiry.
Applying for the longer-term monthly financing plans, which are offered through Affirm, also does not impact your credit score.
However, late or missed payments on the monthly financing plans may be reported to credit bureaus, which could negatively affect your credit history.
What Is Shop Pay?
Shop Pay is an accelerated checkout option developed by Shopify to streamline the online shopping experience. It securely saves a customer's email address, shipping and billing details, and credit card information for future use. This allows for a one-click checkout process across participating online stores that utilize the Shopify platform.
The service also includes a feature called Shop Pay Installments, which is a "buy now, pay later" option for eligible purchases. Your activity with Shop Pay Installments may affect your credit score, depending on the payment plan and your payment history. While making payments on time may not be reported to credit bureaus, late payments or defaults could be reported and negatively impact your credit standing.
How Shop Pay May Impact Your Credit Score
While Shop Pay's standard four-payment plan typically won't touch your credit, opting for longer-term monthly financing through its partner, Affirm, can. Here’s a general look at how that happens.
- Loan Selection: At checkout, you choose a monthly installment plan over the standard bi-weekly option. This action initiates a formal loan application process with Shop Pay's financing partner, Affirm.
- Credit Inquiry: Affirm may perform a credit check to determine eligibility. While this is often a soft inquiry that doesn't affect your score, accepting a loan offer can result in a hard inquiry, which may cause a temporary dip.
- Account Reporting: Once you accept the loan, Affirm may report the new account to credit bureaus like Experian or TransUnion. This new line of credit will then appear on your credit report.
- Payment History Impact: Your payment activity is the most critical factor. Consistently making on-time payments can help build a positive credit history, while late or missed payments will be reported and can negatively impact your score.
How Much Will Shop Pay Affect Your Credit Score?
Several factors determine how using Shop Pay Installments could influence your credit score. Here are the key things to keep in mind:
- Credit Reporting: Shop Pay may report your payment history to a credit bureau. This means on-time payments can positively influence your credit, while missed payments can have a negative effect.
- Payment History: Your record of payments is a major factor in your credit score. Consistently paying your installments on time can help build a positive payment history, which is beneficial for your credit.
- Credit Inquiries: Applying for Shop Pay Installments may result in a soft credit inquiry, which doesn't affect your score. However, certain situations could trigger a hard inquiry, which can cause a temporary dip.
How You Can Avoid Shop Pay Affecting Your Credit Score
Make Timely Payments
The most direct way to protect your credit is by making all Shop Pay Installment payments on time. Late payments are the primary reason for negative reporting to credit bureaus, so setting up reminders or autopay can help ensure you never miss a due date.
Understand the Product
Differentiate between Shop Pay's one-click checkout and Shop Pay Installments. The former is a payment method, while the latter is a financing option. Only installment plans have the potential to impact your credit score, so be mindful of which service you select at checkout.
Opt for Shorter Terms
When possible, choose the "Pay in 4" option for smaller purchases. These short-term, bi-weekly payment plans are less likely to be reported to credit bureaus than longer-term monthly financing options, especially when all payments are made on schedule without any issues.
Ways to Improve Your Credit Score
Improving your credit score is always possible, and with consistent effort, most people can see meaningful changes within a few months. Following a few proven methods can help you build a healthier financial profile and boost your creditworthiness.
- Make timely payments. Since payment history is the most significant factor in your score, setting up automatic payments is a simple way to ensure you never miss a due date.
- Reduce your credit utilization. Aim to use less than 30% of your total available credit. Paying down balances and keeping old credit card accounts open can help lower this ratio.
- Monitor your credit reports. Regularly obtain your free credit reports from all three major bureaus to identify and dispute any errors or inaccuracies that could be hurting your score.
- Maintain a diverse credit mix. Lenders prefer to see that you can responsibly handle different types of debt, such as a mix of credit cards and installment loans.
- Limit hard inquiries. Avoid applying for too much new credit in a short period, as each application can temporarily lower your score. Use prequalification tools to shop for rates without impacting your credit.
The Bottom Line
Generally, Shop Pay's bi-weekly payments won't affect your credit. Monthly financing options might be reported to credit bureaus, and late payments on any plan could negatively impact your score.
Frequently Asked Questions
Does using Shop Pay Installments always involve a credit check?
Yes, a soft credit check is performed for Shop Pay Installments. This initial inquiry does not affect your credit score, but late payments can.
Will paying off my Shop Pay Installments early improve my credit score?
While paying debt early is a good habit, it won't necessarily boost your credit score more than making consistent, on-time payments as scheduled.
How do late Shop Pay payments affect my credit?
Late payments on your installment plan may be reported to credit bureaus, which can negatively impact your credit score and overall credit history.
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