The modern push to buy now pay later can adversely affect your credit score. Seriously think twice!
It’s everywhere on the internet. It’s everywhere on social media advertising.
Buy now pay later has become some what of a craze.
It’s a product of a newer generation and a society that want’s everything now.
That can make it difficult to refuse the temptation. Especially when everyone else is doing it, right?
Buyer beware. Don’t rush in so quick.
Those buy now pay later companies do run credit checks.
They will log into your credit report using Equifax. Also know as Veda.
Once that “buy now pay later” application you made is on your credit file, it stays for five years.
Every future lender will see it when they run a credit check on you.
Then when you apply for serious finance down the track it surfaces.
No harm right? Wrong!
Fast money applications, credit card applications and buy now pay later applications are all viewed by major lenders as an indication you may be hard up for funds. Desperate is another description.
That then leads the lenders to think you could be higher risk. Which in turn means a declined application for you or high interest rates if you’re lucky enough.
Steer clear of fast money finance or delayed payment offers. They adversely affect your credit file.
Avoid the urge and attempt to save until you can afford an item. Your credit file will thank you for it.
Even ASIC is concerned. That is saying something.
We see it all the time with clients who have conducted a credit check online and find out that they have a low credit score even though no defaults exist.