BNPL and Credit Scores Impact

BNPL is an innovation that allows shoppers to get credit without having to pay interest. When a product is purchased through BNPL, the shopper gets the product immediately and can pay in installments. There is no interest charged, however if the payment is delayed then interest and late fees are applicable. A question that arises is on the impact of BNPL on credit scores, we look at this in detail.

When you buy a product through BNPL, you must know the BNPL provider does not carry out a hard credit check. Since there is no credit check done, there is no impact of the purchase on your credit score. However, the service provider may carry out a soft credit check. Such a check has no impact on your credit score. It is possible that there may some service providers who ask for a hard credit check, but such possibilities are rare.

The next question that arises is whether the BNPL service provider reports information to the credit bureaus. You must know your credit score is calculated based on credit limits used, payment history, and balances due. When you buy using BNPL, there is no impact on credit score because the service providers do not report to the credit bureaus.

Some of the providers give you the option to decide if you want this information to be reported. If you are sure, you can repay on time then choose this option. In such a case, it will make a positive impact on the credit score. Making repayments on time helps in getting a good credit score. So, if your BNPL provider offers the facility, then you can use it to boost your credit scores.

Can credit scores be damaged by BNPL?

BNPL data is not reported to credit bureaus, and there is no hard credit check done. This ensures your credit score cannot be affected by BNPL. However, there is one scenario where BNPL can negatively impact your credit score. That would happen if repayment is not done on time. In such a situation, there would be consequences. Late payments are reported to the credit bureau and this can bring down your credit score and affect your overall credit.


BNPL does not have any impact on your credit score unless you default on payment. If you default, it can then negatively affect your credit score. In all other scenarios, there is no impact. The article has been authored by Bahaa Abdul Hussein and has been published by the editorial board of Fintek Diary. For more information, please visit

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