Buy now, pay later and your credit

How pay-in-installments plans can and cannot affect your credit report.

How reporting works

Buy now, pay later plans have not always appeared on credit reports. Some providers now report some loans to some bureaus, and scoring companies have started building ways to include them.

Late payments can count

Even if on-time payments are not reported, a missed payment can bring late fees, and an unpaid balance may be sent to collections, which can appear on your report.

Applying

Some providers use a soft inquiry, and some longer-term loans use a hard inquiry. Check before you agree.

Keep track

Several small plans at once are easy to lose track of. List every due date, and avoid using these plans for everyday spending you cannot already afford.