Picture this: You're scrolling through ASOS at 11pm, that perfect jacket sitting in your cart. Four easy payments, no interest. What could go wrong?
Well, here's the thing—the rules just changed. And if you're among the millions of young Australians using Afterpay (we're talking Gen Z and millennials who've made BNPL their go-to payment method), you need to know what's different now.
Let's cut to the chase. Yes, Afterpay can now affect your credit score—but probably not in the way you think.
Until recently, Buy Now Pay Later services flew under the radar. They weren't really credit products in the traditional sense, so they didn't show up on your credit file unless something went seriously wrong. But here's the twist: as of mid-2024, everything changed. The government brought BNPL under consumer credit laws, and suddenly Afterpay's June 2025 Credit Reporting Policy reads like a proper financial document.
What does this mean for you? Afterpay now conducts credit checks. They report to illion, one of Australia's major credit bureaus. And yes, those missed payments you thought nobody would notice? They might just pop up when you apply for that car loan next year.
Remember when your parents warned you about credit cards? Well, BNPL just joined that conversation.
The Treasury Laws Amendment 2024 basically said, "Hey, if it walks like credit and talks like credit, we're treating it like credit." ASIC jumped in with their Regulatory Guide RG 281, and suddenly the wild west of BNPL became a lot more... civilised.
But here's what really gets interesting: Afterpay's own research with Experian shows their users actually have pretty solid credit scores. So maybe we're not as financially reckless as the headlines suggest?
Opening an Afterpay account isn't like applying for a credit card—yet. But (and this is crucial) Afterpay now performs credit checks for new accounts and when you request higher spending limits. These checks appear on your credit report as enquiries. Think of them like footprints in the sand; lenders can see where you've been.
Ah, the million-dollar question. Here's where it gets frustrating: paying on time doesn't automatically boost your score like it would with a credit card. The system hasn't quite caught up to rewarding good BNPL behaviour consistently. It's like being the perfect tenant but having no rental history to show for it.
That said, the landscape's shifting. With the new Privacy (Credit Reporting) Code 2025, we might see positive reporting become more common. But we're not there yet.
Let's be real: one missed Afterpay payment probably won't torpedo your mortgage dreams. But—and this is a big but—if Afterpay reports it as an overdue payment or serious credit infringement to illion, it becomes part of your credit story. And mortgage brokers? They read every chapter.
What really matters is the pattern. Multiple missed payments across different BNPL providers? That's when lenders start getting nervous.
Remember the good old days of 2023? BNPL was basically invisible to credit bureaus unless you really stuffed up. Soft approvals, no questions asked, party on.
Fast forward to now, and it's a different ballgame:
Right, enough doom and gloom. Here's exactly what you need to do:
Stop putting this off. Get your free credit reports from Equifax, Experian, and illion at least once a year. Set a calendar reminder. Do it after your birthday or something—make it a tradition.
Found something weird? An enquiry you don't recognise? Jump on it immediately. Disputes are easier to resolve when they're fresh.
Seriously, there's no excuse for missing payments in 2025. Set up autopay for your Afterpay instalments. Can't do autopay? Fine, but at least set three reminders: one the day before, one the morning of, and one panic reminder an hour before.
Pro tip: Link it to an account that always has money. Your everyday transaction account, not that savings account you never touch.
Here's a reality check: if you're using Afterpay because you can't afford something right now, maybe... just maybe... you can't afford it at all? Harsh, but true.
Add up all your BNPL repayments. Now add your rent, bills, that gym membership you keep forgetting about. Still got breathing room? Good. If not, it's time to have a chat with yourself.
Planning to buy a house in the next year? Start cleaning up your act now. Mortgage brokers aren't fans of seeing multiple BNPL accounts—even if they're all paid on time. It's about "serviceability"—basically, can you handle more debt?
Consider closing accounts you don't use. Pay off what you owe. And for the love of smashed avo, don't open new BNPL accounts right before applying for a home loan.
Screenshot everything. Payment confirmations, account closures, dispute resolutions. Store them in a folder called "Adult Stuff" or whatever motivates you to actually look at it. When something goes wrong (and Murphy's Law says it will), you'll be glad you did.The Questions Everyone's Actually Asking
Not reliably—yet. Unlike credit cards, where on-time payments actively build your score, BNPL payments are still hit-and-miss when it comes to positive reporting. The infrastructure's changing, but we're in transition mode. Think of it as building good habits for when it does count.
Afterpay's policy confirms they do credit checks for certain actions, and these show up on your report. Whether they're "hard" or "soft" enquiries depends on various factors. But here's the kicker: multiple enquiries in a short time? That's a red flag for lenders. Space them out.
Don't panic—but don't ignore it either. If Afterpay reports it to illion, your broker will see it. Be upfront about it. Explain the circumstances. One slip-up with a good explanation beats trying to hide it. Lenders appreciate honesty more than perfection (well, almost).
Easy: check your credit reports. Look for any entries from Afterpay or unexpected enquiries. See something fishy? Contact both the credit bureau and Afterpay immediately. Don't wait for it to "sort itself out"—it won't.
Let's get specific about what might show up:
It's frustrating, right? You get dinged for the bad stuff but might not get credit for the good. Welcome to the transitional phase of BNPL regulation.
Look, managing multiple BNPL accounts plus regular bills is like juggling flaming torches while riding a unicycle. Doable? Sure. Advisable? Probably not without help.
This is where apps like WeMoney come in handy. Think of it as your financial command centre—all your BNPL instalments, bills, and budgets in one spot. No more "Oh crap, was that payment today?" moments. Set it up once, breathe easier forever.
The best part? When you rock up to your mortgage broker, you can show them exactly how organised you are. It's like bringing receipts to an argument—very satisfying.
Afterpay isn't the credit score boogeyman some make it out to be. But it's not invisible anymore either. The days of consequence-free BNPL are over—and honestly? That's probably a good thing.
Use it wisely, pay on time, and don't let BNPL payments crowd out your actual necessities. Your future home-owning self will thank you.
And remember: in the grand scheme of your financial life, Afterpay is just one piece of the puzzle. Don't let it become the piece that doesn't fit.
Save these for when you need them (and you will):
Final thought: The BNPL landscape is evolving faster than a TikTok trend. What's true today might shift tomorrow. Stay informed, stay flexible, and maybe—just maybe—consider if you really need that fourth pair of white sneakers.
This information is general in nature and does not take into account your objectives, financial situation or needs. It is not personal financial advice. Consider whether it is appropriate for your circumstances and seek independent advice before making financial decisions.
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