Personal Finance

Does Buy Now Pay Later (BNLP) Affect Credit?

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Hands hold a smartphone. Overlaid text reads “What is Afterpay, Klarna and Affirm? How “Buy Now, Pay Later” Impacts Your Credit”
Highlights
In this article

Have you heard about AfterPay™ or Klarna®, and wondered how “buy now, pay later” options could impact your finances or credit health? Learn more about how “buy now, pay later” payment plans could impact your credit.

Highlights:

  • Buy Now, Pay Later (BNPL) services such as AfterPay™, Klarna® and Affirm® let you divide your purchase into multiple payments that you pay over time rather than as a single payment.
  • Unlike other forms of financing, most BNPL services require a soft inquiry on your credit to see if you qualify.
  • Equifax® was the first nationwide consumer reporting agency (NCRA) to formalize a standard process for reporting BNPL services on credit reports.
  • You should carefully read the terms and conditions before you apply for a buy now, pay later service.

 *Equifax is not affiliated with nor endorsing Afterpay, Klarna or Affirm.

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