Does Zip Pay Affect Your Credit Score in Australia? (2026)

Quick Answer: Yes — Zip Pay and Zip Money both affect your credit score in Australia, and have done so more directly than Afterpay even before the June 2025 regulatory changes. Zip has held an Australian Credit Licence since its launch, meaning it always conducted formal credit checks recorded on your file. Post-June 2025, Zip operates under the same framework as all other BNPL providers under the National Consumer Credit Protection Act. A Zip application creates a hard enquiry (5-year file retention). Missed Zip repayments create negative CCR markers (2-year retention). A Zip debt over $150 unpaid for 60+ days can be listed as a default (5-year retention). If you have Zip enquiries or listings on your credit file that were listed in breach of the Privacy Act 1988, they can be formally disputed and removed. Australian Credit Solutions — 98% success rate. No Win No Fee. ASIC ACL 532003. Industry Excellence Award 2022, 2023 & 2024. 4.9/5 from 976+ reviews. 5,000+ Australians helped since 2014.

Zip Pay and Zip Money are two of Australia's most popular Buy Now Pay Later products — but unlike some BNPL competitors, Zip has always operated with a credit licence. That means it has always had a more direct relationship with your credit file than most people realise.

Zip Pay vs Zip Money — The Key Differences for Your Credit File

Zip operates two main products in Australia with different credit impacts:

Both products are regulated under the National Consumer Credit Protection Act from 10 June 2025, and both conduct hard credit checks on application.

How Zip Creates Entries on Your Credit File

The Application Enquiry

When you apply for Zip Pay or Zip Money, Zip accesses your credit file from Experian or Illion. This access is recorded as a hard enquiry and remains on your credit file for 5 years from the date of the search under the Privacy Act 1988.

A single Zip enquiry causes a small, temporary score reduction (approximately 5–15 Equifax points). The impact compounds with each additional BNPL or credit application in the same period.

Repayment History Under CCR

Under Comprehensive Credit Reporting, every monthly repayment status on your Zip account is recorded — on time, late, or missed. This data is visible to any lender who accesses your credit file during the 2-year rolling repayment history window.

Defaults

A Zip debt of $150 or more that goes unpaid for 60 days or more can be listed as a formal default on your credit file. Before listing, Zip must send a Section 21D written notice to your current address giving you 30 days to respond. A default listing reduces most credit scores by 80–200+ points and remains for 5 years. For more, see our guide on can someone else's debt affect your credit score?.

How Zip Differs From Afterpay (Credit File Perspective)

Zip has historically been more aggressive in credit reporting than Afterpay:

Post June 2025, Afterpay is now regulated similarly to Zip. But if you have historical Zip entries on your file from before 2025, these were legitimate hard enquiries that have been on your file for years.

Case Study: Jordan, Brisbane — Zip Money Default Removed After Notice Error

Jordan, 31, a personal trainer from Paddington, had a $780 Zip Money default on his Equifax file. He'd fallen behind on payments during a period when he was between gym contracts and had moved flats. He caught up with the payments but the default remained — and was now blocking his application for a business equipment loan.

Jordan came to Australian Credit Solutions. We reviewed the Zip default listing against the Section 21D notice requirements under the Privacy Act 1988. The pre-listing notice had been sent to his previous address — the flat he'd moved out of three months before the notice date. Jordan had updated his address with Zip when he set up his new account for his new flat's internet connection, but Zip's billing records hadn't been updated accordingly.

The dispute was lodged on the basis of improper Section 21D notice service. Zip removed the default listing within 51 days. Jordan's score improved from 487 to 629. Business equipment loan approved within 6 weeks of removal.

Jordan paid nothing until we succeeded.

Get a free assessment from Australian Credit Solutions →

Can a Zip Enquiry or Default Be Removed?

Yes — under two different circumstances:

Zip enquiries can be removed if:

• You didn't authorise the credit check
• The enquiry contains factual errors (wrong date, duplicate entry)
• Zip accessed your file without your explicit consent

Zip defaults can be removed if:

• The Section 21D pre-listing notice was sent to the wrong address
• The amount listed is incorrect
• The debt was in genuine dispute at the time of listing
• The debt is statute-barred (6+ years old in most states)
• The listing is a duplicate

Australian Credit Solutions reviews all Zip credit file entries at no cost and tells you honestly what grounds exist before you pay anything.

What to Do Right Now

1. Pull your credit reports from Experian and Illion (Zip's primary reporting bureaus) at experian.com.au and creditreport.com.au
2. Look for all Zip-related entries — enquiries, repayment history, and any default listings
3. Note the dates and amounts on every entry
4. Ask yourself: Was this enquiry authorised? Is the amount correct? Did I receive a written notice before any default was listed?
5. If anything looks wrong — get a professional assessment

Frequently Asked Questions

Does Zip Pay do a credit check in Australia? Yes — Zip Pay conducts a hard credit check on application, which appears as an enquiry on your Experian and/or Illion credit file. This has been the case since Zip's launch because Zip has held an Australian Credit Licence since inception, unlike some other BNPL providers who only became regulated in June 2025.

How long does Zip Pay stay on your credit file? A Zip Pay enquiry stays on your credit file for 5 years from the date of the credit check under the Privacy Act 1988. A Zip repayment history record is visible on a 2-year rolling basis under Comprehensive Credit Reporting. A Zip default listing remains for 5 years from the date it was listed.

Can Zip Pay list a default on my credit file? Yes — Zip Pay can list a formal default on your credit file if a debt of $150 or more remains unpaid for 60 days or more. Before listing, Zip must send you a Section 21D written notice to your current address giving you 30 days to respond. If that notice wasn't properly served, the default may be removable.

Does Zip Money affect credit score differently to Zip Pay? The credit file mechanics are similar — both conduct hard enquiries on application and report repayment history. Zip Money allows higher credit limits ($5,000) and charges interest after interest-free periods, meaning larger potential debt and higher default risk. A Zip Money default at a higher amount has a more significant score impact than a small Zip Pay default.

Can I get a home loan with a Zip default on my credit file? Difficult with major banks. Specialist lenders (Pepper Money, Liberty Financial) may consider applications with Zip defaults, at higher rates. If the Zip default was listed in breach of the Privacy Act 1988, professional credit repair may achieve removal before your home loan application — significantly improving your access and rate options.

Does having Zip Pay improve your credit score? On-time Zip repayments are reported to Experian and Illion and may contribute positively to your repayment history under CCR. However, positive BNPL repayment history doesn't carry the same scoring weight as equivalent positive behaviour on bank credit cards. The score improvement from consistent Zip payments is modest compared to the score damage from missing them.

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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 Afterpay affect your credit score? → | How to remove credit enquiries → | Default removal services →