Millions use Afterpay to split purchases into smaller, interest-free payments, but very few realize how it affects their credit. You might be surprised to learn that using Afterpay likely won't help your credit score at all. In fact, it could potentially hurt it.
Does Afterpay Report to Credit Bureaus?
The short answer is no — by default. Afterpay does not automatically report your payment history to the three major credit bureaus: Equifax, Experian, and TransUnion. This means standard on-time payments won't boost your credit score.
Afterpay did partner with Experian in 2024 to offer opt-in reporting, but this is not automatic and only covers Experian. Most users' Afterpay payments don't appear on any credit report unless they've actively opted in.
How Afterpay Can Hurt Your Credit
While Afterpay doesn't report positive payment history by default, it can still damage your credit in a few ways. First, Afterpay may perform a hard inquiry when you apply, which temporarily lowers your credit score by a few points.
Second, missing payments to Afterpay can trigger collections agencies, which will appear on your credit report. This is a serious mark that lenders will see. Third, using too many BNPL services can signal financial trouble to lenders, even if you pay on time.
Afterpay vs Other BNPL Services
Afterpay isn't the only BNPL app people wonder about. Other services vary significantly in how they handle credit reporting:
- Affirm is notably different from Afterpay: as of 2025, Affirm reports all of its products — including Pay in 4 — to Experian and TransUnion automatically. This makes Affirm a more meaningful credit-building tool than Afterpay.
- Klarna reports longer-term financing plans (not pay-in-4) to TransUnion.
- Afterpay offers Experian opt-in reporting but doesn't report automatically.
The trend in the BNPL industry is toward more reporting, but Afterpay's default remains non-reporting. For a full comparison, check our guide to the best BNPL apps that build credit.
The BNPL Built to Report Your Payments
If the whole reason you are reading this is that Afterpay will not build your credit, Perpay is worth a serious look. It is a buy-now-pay-later marketplace where you shop up to $1,000 and pay over time directly from your paycheck, with 0% interest and no credit check to get started. The key difference from Afterpay: Perpay reports your payments to all three bureaus, so every installment you make is helping build your credit history rather than vanishing off the radar. Users who pay on time see an average increase of around 32 points, which makes it the natural pick if you want pay-over-time flexibility and credit progress at the same time.
Perpay
Perpay
Access up to $1,000 to shop and pay over time from your paycheck while building credit. Increase your credit score by 32 points on average!
Standout feature
Buy Now, Pay Later with Credit Building
Fees
Free ($5/mo for Perpay+ to build credit)
Pros
Up to $1000 spending limit and reporting to Experian, Equifax and Transunion
Cons
Cost $5/mo for credit building
Better Ways to Build Credit Than BNPL
If you're looking to build credit, BNPL services should not be your go-to strategy — especially Afterpay. Real credit-building tools report to credit bureaus consistently and help establish a positive payment history.
Secured credit cards are one of the best alternatives. They require a cash deposit but function like regular cards, building credit with every purchase and reporting to all three credit bureaus.
Credit builder loans work differently — you borrow money and repay it over time, but the lender holds your cash as collateral. When you finish making payments, you get your money back plus credit history improvement. These loans report to credit bureaus and typically help boost scores by 50-100 points in 6-12 months. Learn about the differences in our guide comparing credit builder loans vs secured credit cards.
Ava Credit Builder Card
Ava Credit Builder Card
Ava gives you access to a suite of credit-building products including Credit Builder Card, Credit Builder Loan, and Rent Reporting. 74% of members seeing an increase in score in the first week.
Fee
$8/mo (annual) or $10/mo (monthly)
APR
0%
Minimum Deposit Amount
$0
Credit Check
No
Cashback
None
Benefit
Ava reports account activity weekly to all three major credit bureaus: Experian, Equifax, and TransUnion
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.
Standout feature
An avg increase of +86 points within a year with on-time payments
Fees
$5/month for Basic plan, $20/mo for Premium plan $35/mo for Ultimate plan
Pros
Helps both payment history and credit utilization, the two factors that move scores most
Cons
Monthly fee continues for as long as you keep the account open
How to Use Afterpay Without Hurting Your Score
If you already use Afterpay or plan to, here's how to avoid credit damage. Only make purchases you can afford to pay back on the scheduled dates. Set reminders so you never miss a payment, as missed payments are the main credit risk.
Limit how often you use BNPL services. Using multiple BNPL apps for every purchase might trigger fraud checks or soft credit inquiries that add up. Think of Afterpay as a convenience tool, not a credit-building tool.
If you're serious about building credit, combine Afterpay use with a secured credit card or credit builder loan. That way you get the convenience of splitting purchases plus the benefit of consistent credit reporting. See what credit builder accounts can do for your financial health.
FAQ
Does Afterpay build credit if I pay on time?
Not by default. Afterpay does not automatically report payments to credit bureaus. There is an opt-in Experian reporting option, but most users' Afterpay payments don't appear on any credit report.
Can Afterpay hurt my credit score?
Yes, if you miss payments. Missed payments can go to collections and appear on your credit report. Afterpay hard inquiries may also cause small temporary score dips.
What's better than Afterpay for building credit?
Secured credit cards and credit builder loans are proven tools that report to all three credit bureaus. Affirm also reports to Experian and TransUnion (including its Pay in 4 plan) making it a better choice than Afterpay if you want BNPL payments to build credit.
Is Afterpay safe to use?
Afterpay is safe as long as you make payments on time. Just don't rely on it to build credit.
Do any BNPL services report to credit bureaus?
Yes. Affirm reports all products (including Pay in 4) to Experian and TransUnion. Klarna reports longer-term plans to TransUnion. Afterpay offers opt-in Experian reporting. Perpay reports to all three bureaus. The landscape has shifted significantly since 2024–2025.
