Some buy now pay later providers report missed payments to the credit reference agencies, and some report on-time payments too, while others report very little unless a debt is passed on or defaulted. Reporting in this area has been changing, so what shows can vary between one plan and another.
This page looks at what can appear on your file, how several buy now pay later plans running at once may be viewed, and what to check before you remortgage. See our main page on remortgaging with missed payments for the wider picture.
On this page
This page covers
- Credit issue
- Missed paymentsUsually stays on your credit file for 6 years from the date recorded.
In short
- Reporting varies by provider: some report missed and on-time payments, others report very little.
- A defaulted buy now pay later debt is generally treated like any other default.
- Using several buy now pay later plans at once can be a factor in affordability, separate from missed payments.
- Checking your statutory credit report is the most reliable way to see what has actually been recorded.
Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home. Borrowing over a longer term can mean paying back more in total.
Do buy now pay later payments show on your credit file at all?
It depends on the provider and the type of agreement. Some buy now pay later products are regulated credit agreements and providers report payment history to the credit reference agencies, in a similar way to a credit card. Others have historically reported very little, particularly for short, interest-free plans, though this has been an area of ongoing change as regulation develops.
Because it varies so much, it is worth checking your own statutory credit reports rather than assuming a particular provider does or does not report. Our guide on buy now pay later and your credit file goes into this in more detail.
What happens if you miss a buy now pay later payment?
Where a provider does report to the credit reference agencies, a missed payment is generally recorded in much the same way as any other missed payment: the month is marked as behind, and further missed instalments show how far behind the account has fallen. If the debt is not resolved, it can eventually be defaulted or passed to a debt collection agency, either of which is treated more seriously.
| What happens | How it is generally viewed |
|---|---|
| Paid a few days late, provider does not report to agencies | May not show on your credit file at all, though a late fee may apply |
| One instalment missed, then caught up | Where reported, treated similarly to a single missed payment on any other account |
| Debt unresolved and passed to a debt collector | Treated more seriously, whatever the original provider’s own reporting |
| Account formally defaulted | Treated like any other default, staying on your file for 6 years from the default date |
For illustration only. Exact reporting depends on the individual provider and agreement.
Does having several buy now pay later plans affect a remortgage?
It can, even without a single missed payment. Several active plans at once mean several small, regular commitments coming out of your income, and a lender assessing affordability may ask about them alongside your other outgoings. Running many plans at the same time can also, in some cases, suggest a budget that is being stretched to cover everyday spending.
This is a separate question from your credit file. Affordability is based on your income and outgoings as shown on your bank statements, so buy now pay later commitments can come up in that conversation even if a particular provider does not report to the credit reference agencies at all.
How can you check what has actually been recorded?
The only reliable way to know what shows is to check your own credit reports, since providers differ and reporting practice has been changing. Everyone is entitled to a free statutory credit report from each of the main agencies.
- Request your statutory credit report from Experian, Equifax and TransUnion.
- Look specifically for buy now pay later providers, as they may be listed differently from a bank or a well-known lender.
- Check the payment status shown against what you actually paid and when.
- Query anything that looks wrong directly with the provider.
What should you do if you are behind on buy now pay later payments?
Contact the provider as soon as you can, since many will discuss a repayment plan rather than simply escalating the debt. Bringing the account up to date, and avoiding taking on new buy now pay later plans while you are behind, is generally the most useful step before applying for a remortgage.
If buy now pay later has become one of several ways you are managing a shortfall each month, it is worth speaking to a free debt adviser as well. MoneyHelper, StepChange and National Debtline can help you look at the whole picture rather than one plan at a time.
What tends to matter with buy now pay later use
With buy now pay later, lenders often look as much at the pattern of use as at any single missed payment.
| Factor | Why it matters |
|---|---|
| Whether the provider reports to credit reference agencies | This varies, so the same missed payment may or may not appear on your credit file depending on the provider. |
| How far a missed payment escalated | A payment that was simply a few days late is generally viewed very differently from one that reached a debt collector or a default. |
| Number of active plans | Several plans running at once are often treated as a commitment in affordability, separate from whether any payment was missed. |
| Frequency of use | Regular use of buy now pay later for everyday spending can be one part of a wider affordability picture. |
| Other entries on your file | A buy now pay later issue alongside other missed payments or defaults is likely to be viewed alongside them, not in isolation. |
| Whether the debt has since been settled | A cleared balance can help show the position has moved on, even though the record of any missed payment stays on your file. |
| Income and affordability | Lenders assess your income against your outgoings, including regular buy now pay later instalments shown on your bank statements. |
These are general points, not lender rules. Each lender sets and changes its own criteria.
Information an adviser may ask for
You don’t need all of this to make an enquiry. It helps to know where to find it, because an adviser is likely to ask about most of it.
- Which buy now pay later providers you have used recently
- Whether any payments have been missed, and what happened afterwards
- Roughly how many active plans you have at any one time
- A recent credit report from at least one agency
- Recent bank statements showing regular buy now pay later payments
- Your mortgage balance, monthly payment and deal end date
Frequently asked questions
Does using buy now pay later affect my credit score even if I always pay on time?
It depends on the provider. Some report on-time payments as well as missed ones, which can show as a positive entry, while others report very little either way. Frequent use across many plans can still come up in an affordability assessment, separate from your credit score.
Will a missed buy now pay later payment show as a default?
Only if the debt reaches that stage. A single missed instalment that is caught up is usually a less serious entry than a default, which is typically only recorded after payments have been missed for some months and the debt remains unresolved.
Can a mortgage adviser see my buy now pay later use directly?
An adviser cannot see it directly, but it can appear on your credit report if the provider reports to the agencies, and it can also show up on your bank statements, which lenders review as part of affordability. It is best to mention any regular use yourself rather than let it come as a surprise.
Is buy now pay later treated like a missed credit card payment?
Where a provider reports missed payments to the credit reference agencies, the marker is generally treated in a similar way to a missed payment on any other credit account. Our page on missed credit card payments covers how that side of things is usually viewed.