Does Buy Now Pay Later (BNLP) Affect Credit?

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.