Does Afterpay Affect Your Credit Score in Australia? (2026)

Quick Answer: Yes — Afterpay can now affect your credit score in Australia. As of 10 June 2025, Afterpay and all Buy Now Pay Later (BNPL) services became regulated under the National Consumer Credit Protection Act (NCCP). This means Afterpay now conducts credit checks that appear on your credit file, and missed payments can be reported to credit bureaus including Illion. A single Afterpay enquiry won't meaningfully hurt your score, but multiple BNPL applications combined with missed payments can create compounding negative signals. If you have unexpected Afterpay or BNPL entries on your credit file — particularly enquiries you don't recognise — Australian Credit Solutions can assess whether they were properly authorised. 98% success rate on accepted cases. No Win No Fee. Lawyer-led. ASIC ACL 532003. Industry Excellence Award 2022, 2023 & 2024. 4.9/5 from 976+ reviews. 5,000+ Australians helped since 2014.

If you've been using Afterpay, Zip, Klarna or Humm, there's something important you need to know — the rules changed significantly in 2025, and millions of Australians are still unaware.

What Changed on 10 June 2025

Before June 2025, Buy Now Pay Later was largely unregulated. Afterpay operated outside the standard consumer credit framework, which meant it couldn't easily appear on your credit file or affect your credit score in the same way as a credit card or loan. For more detail, see our guide on does zip pay affect your credit score in australia?.

That changed permanently when the Australian Government's Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024 came into full effect on 10 June 2025.

From that date, all BNPL providers — including Afterpay, Zip, Klarna, Humm, and PayPal Pay Later — were required to:

• Hold an Australian Credit Licence (ACL) from ASIC
• Join the Australian Financial Complaints Authority (AFCA)
• Comply with responsible lending obligations
• Conduct credit checks on new customers and limit increases
• Report to credit bureaus under the Privacy Act 1988

In plain terms: Afterpay is now legally treated like a credit card. The implications for your credit score are real.

How Afterpay Now Affects Your Credit File

There are three ways Afterpay activity can now appear on your Equifax, Experian, or Illion credit file:

The enquiry: When you sign up for a new Afterpay account or request a limit increase, Afterpay now conducts a credit check. This enquiry is recorded on your credit file and remains there for 5 years under the Privacy Act 1988. A single enquiry has minimal impact. Three or four BNPL enquiries in quick succession — Afterpay, Zip, Humm, Klarna all in one month — creates an enquiry cluster that signals financial stress to lenders.

The missed payment: Under Comprehensive Credit Reporting (CCR), repayment history is now recorded monthly across all credit providers. A missed Afterpay instalment that goes unresolved creates a negative repayment marker visible on your file for 2 years.

The default: An Afterpay debt over $150 that remains unpaid for 60+ days can now be listed as a formal default on your credit file — remaining for 5 years from the date of listing.

What Hasn't Changed

One misconception worth clearing up: paying Afterpay on time does not automatically boost your credit score the way paying a credit card does. Afterpay reports to Illion, but positive repayment history from BNPL is not yet consistently flowing into all three bureaus' scoring models. You're building positive history with one bureau, but the benefit is more limited than equivalent behaviour on a bank credit card.

The asymmetry here is important: missing Afterpay payments can hurt your score significantly, while paying on time helps only modestly. This is different from credit cards where consistent positive behaviour is strongly rewarded.

Case Study: Mia, Melbourne — 3 BNPL Accounts, 4 Enquiries, 1 Declined Car Loan

Mia, 27, a graphic designer from Fitzroy, was knocked back for a car loan in late 2025. Her Equifax score was 531 — Below Average. She couldn't understand why. She had no defaults. She'd never missed a loan repayment.

Her credit file told a different story. In early 2025, she'd signed up for Afterpay (new regulations not yet in effect), then Zip for a higher limit, then Klarna for an online purchase, then requested an Afterpay limit increase. Four separate hard enquiries in 8 months. Two missed Zip instalments — caught up quickly but still recorded as 30-day late repayments under CCR.

None of the BNPL enquiries were fraudulent — they were all hers. But two of the Zip enquiry records showed incorrect dates that didn't match her sign-up history, and the second Afterpay limit enquiry was triggered automatically without her explicit request.

Australian Credit Solutions reviewed the file. The automatically triggered Afterpay enquiry and one Zip date discrepancy were successfully disputed under the Privacy Act 1988. Two enquiries removed. Score improved from 531 to 589. Combined with letting the two late payment markers age out of the 2-year CCR window, Mia's score reached 624 within 14 months — Good band.

Mia paid nothing until we succeeded.

Get a free assessment from Australian Credit Solutions →

What to Check on Your Credit File Right Now

If you use Afterpay or any other BNPL service, pull your credit reports from all three bureaus immediately:

• Equifax: equifax.com.au (free annual report)
• Experian: experian.com.au
• Illion: creditreport.com.au

Look for:

• Enquiries you don't recognise from BNPL providers
• Enquiries from automatic limit increases you didn't explicitly request
• Late repayment markers from instalments you thought were paid
• Any default listings from BNPL providers

Under the Privacy Act 1988, any enquiry that wasn't properly authorised, or any default listed without the required Section 21D written notice, can be disputed and removed.

Protecting Your Score While Using Afterpay

If you want to continue using BNPL services without damaging your credit score:

1. Limit to one BNPL account — multiple sign-ups create multiple enquiries
2. Never miss an instalment — even 30 days late creates a CCR marker now
3. Don't request limit increases casually — each request triggers a credit check
4. Link to a debit account — if your BNPL charges don't go through, missed payments are recorded
5. Check your credit file quarterly — free from each bureau every 3 months

Why Australian Credit Solutions Handles BNPL Credit Issues

Australian Credit Solutions is a division of Fogarty Oliver and Rothschild law firm. As BNPL regulation is brand new, the legal grounds for dispute are still being tested — and having lawyer-led representation under the Privacy Act 1988 is particularly important for BNPL cases where authorisation and proper notice procedures are most likely to contain errors.

We've helped over 5,000 Australians since 2014. 98% success rate on accepted cases. No Win No Fee. Industry Excellence Award 2022, 2023 & 2024. 4.9/5 from 976+ verified reviews.

Frequently Asked Questions

Does Afterpay affect your credit score in Australia? Yes, since 10 June 2025. Afterpay now conducts credit checks that appear on your credit file as enquiries, and missed payments can be reported as negative repayment markers to credit bureaus. A default on Afterpay (debt $150+ unpaid for 60+ days) can now be formally listed on your credit file for 5 years.

Did Afterpay affect credit scores before June 2025? Limited impact before June 2025. BNPL was largely unregulated, so enquiries and repayment history weren't consistently reported to credit bureaus. The June 2025 regulatory change brought Afterpay under the same credit laws as credit cards and personal loans for the first time.

How many points does Afterpay take off your credit score? A single Afterpay application enquiry reduces an Equifax score by approximately 5–15 points. A missed payment creates a 30-day late marker reducing scores by 20–60 points. A formal default (60+ days overdue) reduces scores by 80–200+ points. Multiple enquiries from several BNPL accounts compound the effect significantly.

Can I dispute an Afterpay enquiry on my credit file? Yes — if the enquiry was not properly authorised (for example, an automatic limit increase you didn't explicitly request) or contains factual errors, it can be disputed under the Privacy Act 1988. Australian Credit Solutions assesses BNPL enquiry cases for removal grounds at no cost.

Does using Afterpay help build your credit score? Marginally — Afterpay reports to Illion, and on-time repayments may be recorded as positive history. However, positive BNPL repayment data is not yet consistently weighted the same as bank credit card repayments in scoring models. The risk-reward ratio is unfavourable: missed payments hurt significantly more than on-time payments help.

Should I close my Afterpay account before applying for a home loan? Not necessarily. Closing an account doesn't remove the enquiry that created it — that stays for 5 years regardless. What matters is whether you have any outstanding BNPL debts, missed payments, or multiple recent enquiries visible on your file. A mortgage broker should review your full credit file before any application.

Get My Free Assessment → 📞 0489 265 737 🛡️ ASIC Licensed ACL 532003 | ⭐ 4.9/5 from 976+ Reviews | 🏆 Award Winner 2022–2024

Australian Credit Solutions Pty Ltd holds Australian Credit Licence ACL 532003. Credit repair services are subject to individual assessment. Results may vary. This article provides general information only and does not constitute legal or financial advice.

Related reading: Does novated lease affect your credit score? → | How to remove credit enquiries → | What affects your credit score →