"Just Afterpay it" used to be the easiest sentence in retail. Split it into four, forget about it, move on with your life. That’s how most of us thought about Buy Now Pay Later for years, and honestly, it made sense. BNPL sat outside the rules that governed credit cards and personal loans, so it never really touched your credit file.
That’s not the case anymore.
Quick answer: yes, Afterpay can now affect your credit score. Since 10 June 2025, Afterpay and other BNPL providers are regulated the same way as credit cards and personal loans in Australia. That means credit checks, credit reporting, and yes, an entry on your file every time you sign up or ask for a limit increase.
If you’re here because you’ve spotted something unexpected on your credit report, or you’re just trying to understand what’s changed, let’s walk through it properly.
What Changed for Afterpay and BNPL in 2025
For most of Afterpay’s existence, BNPL operated in a bit of a grey zone. It wasn’t classified as credit under Australian law, which meant providers didn’t need a credit licence and generally didn’t report your activity to the credit bureaus.
That ended with the Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024, which came into full effect on 10 June 2025. BNPL products are now classified as "low cost credit contracts" and regulated under the National Consumer Credit Protection Act, the same legislation covering your credit card, car loan, and mortgage.
In plain terms, Afterpay is now legally treated a lot like a credit card. Providers have to hold an Australian Credit Licence, run credit checks on new applicants, and assess whether you can actually afford what you’re signing up for.
Does Buy Now Pay Later Affect Your Credit Score?
Short answer: it can, and this applies across the board, not just to Afterpay. Zip, Klarna, Humm, and PayPal Pay Later all fall under the same rules now.
There are a few main ways BNPL activity can land on your credit file, though the details vary by provider:
| Activity | What it means | How long it stays |
|---|---|---|
| Credit enquiry | Recorded when you sign up for a new account or request a limit increase | 5 years |
| Repayment history | Ongoing record of on-time or missed payments, if and when a provider reports it | Rolling record, builds over time |
| Default | Can be listed if a payment of $150+ is 60+ days overdue | 5 years |
Here’s the part worth remembering: one Afterpay sign-up isn’t going to tank your score. It’s more that multiple BNPL applications stacked close together, combined with missed payments, start sending a signal that lenders don’t love. And not every provider handles reporting the same way, so it pays to check the fine print on the app you’re actually using.
What Actually Shows Up on Your Credit File
So what does this look like in practice?
The enquiry. Every time you apply for a new Afterpay account or ask for a spend limit increase, that’s logged as a credit enquiry with the bureau. A low score doesn’t automatically mean a lower limit, and a high score doesn’t guarantee a bigger one either. It’s one factor among several.
Repayment history. This is where it gets provider-specific. Afterpay has stated it doesn’t currently report ongoing repayment or spend limit information to the bureaus, though it’s said it will notify customers if that changes. Other BNPL providers may already report positive repayment behaviour under Australia’s Comprehensive Credit Reporting system, so it’s worth checking each app you use rather than assuming they all work the same way.
Defaults. This is the one that stings, regardless of provider. If a payment of $150 or more goes unpaid for 60 days or longer, it can be listed as a default on your file. Unlike a late payment, a default sticks around for five years, whether you eventually pay it off or not.
What Is Bad Credit History?
Bad credit history basically means your file shows a pattern of trouble repaying money on time. Think missed payments, defaults, too many credit enquiries in a short window, or court judgements.
It’s not a life sentence, and it’s definitely not a character judgement. A missed phone bill from two years ago or one too many loan applications in a tight stretch can be enough to knock your score around. We’ve gone deeper into what counts as bad credit history and how long different entries actually stay on your file, if you want the full picture.
How to Check Your Credit Score
Given BNPL now shows up on your file, it’s worth actually knowing where you stand. The good news: checking is free and it won’t ding your score.
You can request your score directly from Australia’s credit reporting bodies. Each one holds a slightly different file, since not every lender reports to all of them, so it’s worth checking more than one if you want the full picture. If you want the exact ranges and what each band means, we’ve broken down what counts as a good credit score in Australia separately.
A few things worth knowing before you check:
- You’re entitled to a free report every three months under the Privacy Act 1988
- Checking your own file is a "soft enquiry" and has zero impact on your score
- Many banking apps now show your score for free too, usually through Equifax
How to Use Afterpay Without Hurting Your Score
None of this means BNPL is off the table. It just means it deserves a bit more respect than it used to get.
- Treat instalments like any other bill. Set a reminder if you need to.
- Avoid opening multiple BNPL accounts at once. Each application is a fresh enquiry.
- Keep an eye on how many active BNPL plans you’re juggling. It adds up faster than it feels like it does.
- Even a small emergency fund behind you makes it easier to skip BNPL entirely when something unexpected lands.
- If you’re actively working on building your credit score, consistency matters more than any single decision.
Key Takeaways
- Afterpay and other BNPL providers have been regulated like credit cards since 10 June 2025
- Sign-ups and limit increases show up as credit enquiries on your file
- On-time repayments can now help your score, not just hurt it
- Missed payments of $150+ for 60+ days can become a default that stays for 5 years
- You can check your score for free, every three months, without affecting it
If bad credit is already part of your story, you’re not alone, and it doesn’t have to close every door. MoneyBuddy looks at your current situation rather than just a number from your past, with small loans up to $5,000 and options for people who’ve been knocked back elsewhere.
This article is for general information purposes only and does not constitute financial advice. Please consider your own financial situation before applying for credit.
The MoneyBuddy Team
MoneyBuddy Australia
Helping Australians access fair, transparent small loans since day one. Our team creates practical guides to help you make smarter borrowing decisions.
