Buy now, pay later (BNPL) apps have exploded in popularity. Over 45% of U.S. consumers used a BNPL service in the past year. But here's what most people don't realize: most BNPL services don't report positive payment history to credit bureaus.
That means your on-time payments on Afterpay, Klarna, and similar apps often do nothing to build your credit score. Worse, some BNPL providers will report missed payments, which can hurt your score.
The good news? A growing number of BNPL apps now report to credit bureaus — giving you a way to build credit while splitting payments. Here are the best options for 2026. New to the category? Our primer on what is buy now pay later explains the basics. If you're using BNPL for a specific category like splitting grocery and meal bills or financing a new washer or fridge with no credit check, those guides cover the category-specific apps. And if you specifically want to know whether Affirm builds credit, that breakdown covers which Affirm plans actually report and which bureaus they hit.
How BNPL Credit Reporting Works
Traditional BNPL apps split purchases into 4 interest-free installments over 6-8 weeks. Because these are short-term, they weren't designed to be reported to credit bureaus. Credit scoring models didn't know what to do with them.
That's changing. FICO 10T and VantageScore 4.0 are designed to incorporate BNPL data. And several BNPL providers have begun reporting payment activity to Experian, Equifax, and/or TransUnion.
When a BNPL app reports to bureaus, your on-time payments add positive history to your credit file — similar to how a credit card or credit builder loan works.
Best BNPL Apps That Build Credit
Perpay
Perpay is a BNPL platform that lets you shop from a curated marketplace and pay over time directly from your paycheck. What makes Perpay stand out: it reports every payment to all three major credit bureaus. For a full walkthrough of fees, eligibility, and how the paycheck-based model actually performs, read our Perpay+ review for 2026.
- Reports to: Experian, Equifax, TransUnion
- How it works: Shop, pay from your paycheck over time, build credit automatically
- No credit check: Uses income verification instead
- Average score increase: 32 points (according to Perpay)
Perpay is especially useful for people with no credit history because it doesn't require a credit check and reports positive history from day one.
Afterpay (via Experian opt-in)
Afterpay partnered with Experian in 2024 to begin reporting on-time BNPL payments. If you opt in, your Afterpay payment history appears on your Experian credit report.
- Reports to: Experian (opt-in required)
- How it works: Pay in 4 installments over 6 weeks
- No interest: 0% APR on standard pay-in-4 plans
- Credit check: Soft check only
Note that Afterpay only reports to Experian — not Equifax or TransUnion. This limits the credit-building impact.
Klarna
Klarna began reporting to credit bureaus in 2024 through a partnership with TransUnion. On-time payments on Klarna's longer-term financing options (not pay-in-4) are reported.
- Reports to: TransUnion
- How it works: Pay-in-4 (not reported) or monthly financing (reported)
- No interest on pay-in-4: Monthly financing may include interest
- Credit check: Soft check for pay-in-4; hard check for financing
Affirm
As of 2025, Affirm reports all of its products — including Pay in 4 — to Experian and TransUnion. This makes Affirm one of the more comprehensive BNPL credit reporters, with automatic reporting that doesn't require an opt-in.
- Reports to: Experian, TransUnion (Equifax not covered)
- How it works: Pay in 4 or monthly installments for 3–36 months
- Interest: 0–36% APR depending on creditworthiness and plan
- Credit check: Soft check initially; hard check for larger/longer-term loans
Perpay Credit Card
Perpay Credit Card
Meet the only card powered by your paycheck. With automatic transfers from your paycheck, you can manage payments stress-free and build credit with ease.
Fee
$9/month plus $9 account opening fee
APR
Marketplace: 0% / Credit Card: 27.74% to 29.99% depending on your creditworthiness.
Minimum Deposit Amount
$0
Credit Check
No
Cashback
2% reward on purchases made in Perpay Marketplace
Benefit
2% rewards, no security deposit
Zilch
Zilch is a UK-based BNPL that expanded to the U.S. and reports payment activity to credit bureaus. It offers pay-in-4 plans with credit bureau reporting.
- Reports to: TransUnion
- How it works: Pay-in-4 with optional credit reporting
- No interest on basic plan: Premium features may have costs
- Credit check: Soft check
Sezzle
Sezzle began reporting payment data to credit bureaus through its "Sezzle Up" program. Opt in through the app to have your on-time payments reported.
- Reports to: TransUnion and Equifax
- How it works: Pay in 4 installments; opt in to credit reporting
- No interest on standard plan
- Monthly fee for credit reporting: Small fee for Sezzle Up program
BNPL Apps That Don't Build Credit
These popular BNPL services currently do NOT report positive payments to credit bureaus:
- PayPal Pay Later — Pay in 4 not reported
- Apple Pay Later — Discontinued as of 2024
- Zip (formerly Quadpay) — Does not report to bureaus. For more on this specific platform, see our deep-dive on whether Zip builds credit.
While these services won't hurt your score through normal use, they won't help build it either. If credit building is your goal, choose a provider that reports.
Risks of Using BNPL to Build Credit
BNPL can help, but there are risks to watch:
- Overspending. Splitting payments makes purchases feel cheaper. Budget as if you're paying the full amount upfront.
- Missed payments still hurt. Even BNPL apps that don't report positive history may report missed payments or send accounts to collections.
- Multiple accounts. Too many BNPL accounts can complicate your credit file and may concern lenders.
- Late fees. Some BNPL services charge fees for missed payments, though many have moved to pausing accounts instead.
Better Alternatives for Credit Building
While BNPL can supplement your credit-building strategy, dedicated credit-building tools are more effective:
- Secured credit cards — Report monthly to all three bureaus, build a full credit history. Self Visa® and OpenSky are top picks.
- Credit builder loans — Designed specifically to add positive payment history. Kikoff is a great option.
- Rent reporting services — Turn existing payments into credit-building activity
Kikoff Credit Account
Kikoff Credit Account
Everything you need to build your credit, right in one app. Build credit, lower debt, and unlock progress with tools that actually work.
Loan Amount
$750-$3,500 depends on the plan
Term
12 months
APR
0%
Admin Fee
$0
Monthly Fee
$5/month for Basic plan, $20/mo for Premium plan $35/mo for Ultimate plan
Credit Check
No
Average Score Increase
An avg increase of +86 points within a year with on-time payments
Frequently Asked Questions
Does buy now pay later affect your credit score?
It depends on the provider. BNPL apps that report to credit bureaus can help (on-time payments) or hurt (missed payments). Apps that don't report have no effect on your score — unless the account goes to collections.
Which BNPL app is best for building credit?
Perpay is currently the best for credit building because it reports to all three bureaus. Affirm is also strong — it now reports all products including Pay in 4 to Experian and TransUnion.
Can BNPL hurt your credit score?
Yes. Missed BNPL payments can be sent to collections, which damages your score significantly. Some BNPL apps also perform hard credit checks for larger purchases.
Is BNPL better than a credit card for building credit?
No. Credit cards — especially credit builder cards — are more effective because they report to all three bureaus monthly and help you build a full credit profile. BNPL is a supplement, not a replacement.
Do I need a credit score to use BNPL?
Most BNPL apps require only a soft credit check or income verification. You can usually qualify with no credit history, making them accessible for beginners.
Disclaimer: BNPL reporting practices change frequently. Check each provider's current policies. Terms and conditions apply. This information is for educational purposes only.
