2025 Australia Buy Now Pay Later Credit Reporting: How Afterpay, Zip and Klarna Hit Your Score

For years, Buy Now Pay Later (BNPL) services in Australia operated outside traditional credit reporting. Platforms like Afterpay, Zip and Klarna did not routinely share repayment information with credit bureaus — meaning both good and bad behaviour often went unrecorded.

That changes in 2025. Under updated industry rules and stronger oversight from ASIC, more BNPL providers now participate in Australia’s credit reporting framework. As a result, your BNPL activity can influence how lenders see you when applying for credit cards, car loans, personal loans and even some rental applications.

This guide explains what is changing, what BNPL information is sent to bureaus, and what Australian consumers should check right now to protect their credit health.

What Changed in 2025: BNPL Joins Credit Reporting

Several major Australian credit reporting bodies — Equifax, illion and Experian — now accept BNPL repayment data under voluntary and regulated frameworks.

Depending on the provider, the following may be reported:

• BNPL account opening (new accounts or limits)
• Repayment history — whether you paid on time or late
• Overdue payments that remain unpaid
• Hardship arrangements (in some cases)
• Credit limit increases or changes to spending behaviour

This shift aligns BNPL more closely with traditional credit products, especially as the sector becomes regulated under a modified credit framework.

How BNPL Can Affect Your Credit Score in 2025

1. On-Time Payments May Help

Many BNPL users pay on time. Regular, consistent repayment behaviour may demonstrate reliability when lenders assess creditworthiness — especially for consumers with thin credit files.

2. Late Payments Can Hurt Your Score

BNPL platforms typically attempt automatic payments. If the linked card declines or a bank account lacks funds, the provider may flag the repayment as missed. These late payments can appear on your credit file and may lower your score, depending on their severity and frequency.

3. Multiple BNPL Accounts Can Increase Perceived Risk

Opening several BNPL accounts within a short period may signal financial stress or dependency on short-term credit.

4. High Usage Patterns May Alarm Lenders

Even small purchases can add up. Lenders reviewing your credit file may treat heavy BNPL usage as a recurring financial obligation.

5. Hardship Arrangements May Be Visible

If you request payment relief from a BNPL provider, this may be reported depending on the credit bureau and the provider’s participation rules.

What Information BNPL Providers Typically Do NOT Share

• Detailed purchase history (e.g., what items you bought)
• Your browsing behaviour or shopping patterns
• Declined transactions that were later fixed quickly

Credit bureaus focus on repayment behaviour, not shopping habits.

Who Is Most Affected by BNPL Credit Reporting?

• Younger users who rely heavily on BNPL for discretionary purchases
• Consumers with multiple BNPL accounts across Afterpay, Zip, Klarna and others
• People on irregular income whose automatic payments occasionally bounce
• Borrowers planning major credit applications (car loan, home loan, credit card limit increase)

Because BNPL repayments are usually small and frequent, even one late payment can create a negative pattern if repeated over several months.

How to Protect Your Credit Score If You Use BNPL

• Enable automatic payments but ensure the linked card or bank account always has a buffer.
• Set reminders for instalments — especially if using multiple BNPL apps.
• Review your payment history in each app monthly.
• Reduce unused BNPL accounts to avoid confusion and accidental late payments.
• Check your credit report annually (free via each major bureau).
• Update expired debit/credit cards in your BNPL apps immediately.

Common Myths About BNPL and Credit Scores

• “BNPL never affects your credit score.”
  False — from 2025, many providers now report to credit bureaus.
• “Small purchases won’t matter.”
  False — it’s the repayment behaviour, not the dollar amount, that matters.
• “Hardship arrangements don’t show up.”
  Sometimes false — they may appear depending on provider and bureau.
• “Using BNPL improves your score automatically.”
  No — only consistent on-time repayments may help.

Sources & Further Reading

• ASIC – BNPL reforms and consumer credit updates
• ACCC – Digital payments & consumer protections
• Equifax, illion, Experian – Credit reporting guidance
• BNPL provider terms (Afterpay, Zip, Klarna)

Disclaimer: This article provides general information only and is not financial advice. BNPL reporting rules vary by provider and credit bureau. Always check the latest information from your provider and official regulators.