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Does ZipPay Affect Credit Score?

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Comparison rate3

8.34 %

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Disclaimer: This calculator provides an estimate only and a comparison rate based on the example information provided. Other fees, costs and charges are not included. This calculation is not an offer for credit. The amount you can borrow may vary once you complete a loan application and all the details relevant to our lending criteria are captured and verified. The interest rate for this product is variable and subject to change. Any calculations made by you using this calculator is intended as a guide only.

3This comparison rate is based on an unsecured variable rate personal loan of $30,000 for a term of 5 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. $495 establishment fee and $10 monthly fee applies. Comparison as of:06/06/2022

Does ZipPay affect credit score?

Buy now, pay later services are now the most popular choice of payment for consumers across Australia, so it’s no wonder customers are beginning to ask, ‘Does ZipPay affect credit score’, ‘Does Zip Money affect credit score’, and ‘Does Afterpay affect credit score’? 

Using the MoneyMe credit score finder to periodically check how your credit score is faring thanks to your buy now, pay later habit is an easy way to make sure you’re in the best position to apply for that loan or credit card you’ve been contemplating. 

What are buy now pay later services?

Buy now, pay later (BNPL) services offer customers access to a limited amount of credit with which they can purchase goods or services and pay for them at a later date. 

The BNPL provider covers the full cost of the item or service at the time of purchase, which is then repaid in instalments by the consumer over a set period of time.

ZipPay, Zip Money, and Afterpay are currently the most popular BNPL services in Australia, with each offering easily accessible credit and a range of rewards to their customers.

How do buy now pay later services work?

Each buy now, pay later provider operates in a slightly different way.  

ZipPay (for amounts $350–$1,000) allows customers to purchase without paying anything upfront. They also allow consumers to set their own repayment frequency, from weekly to fortnightly to monthly. At a minimum, Zip requires a monthly repayment and charges a monthly account fee if the balance is not paid in full.  ZipPay also offers functionality where customers can use their credit to pay utility bills via BPAY and fund subscriptions. 

Zip Money (for purchases between $1,000 and $5,000) offers the above benefits, as well as a guaranteed three-month interest-free period on larger purchases. Beyond that point, outstanding balances on Zip Money purchases are charged at a predetermined interest rate (19.9% p.a. at time of writing).

Unlike Zip products, Afterpay divides the total cost of goods or services purchased into four equal fortnightly repayments. Afterpay typically requires the first quarterly instalment to be paid on the date of purchase; however, depending on how regularly you use the service, you may be rewarded with perks such as ‘nothing to pay today’ (the deferment of the first instalment). 

All services offer exclusive rewards for use via the app and in-store with select retail partners. With their payment flexibility, lack of interest charges, and extended interest-free periods, buy now, pay later services have become the preferred choice over traditional credit cards. 

What is ZipPay?

ZipPay is one of two buy now, pay later services offered to consumers by Zip, an Australian-based credit lender (they also offer a business service). The second is Zip Money. 

ZipPay is targeted at smaller purchases, with a ZipPay limit between $350 and $1,000. Customers can shop in-store by simply adding Zip to their phone’s digital wallet. Where Zip checkout is unavailable online, the app offers the ability to generate a single-use ZipPay credit card to enable purchases. There are no establishment fees or interest charges with Zip Money, and customers can schedule their own ZipPay repayments. 

While ZipPay offers customers buy now, pay later credit for smaller purchases and bills, Zip Money is specifically targeted at larger purchases, with Zip Money credit limits between $1,000 and $5,000 available to approved customers.

Does ZipPay do credit checks?

Despite being legally permitted to share your credit information with credit bureaus, Zip may not do so proactively. Rather, they may make decisions to share your information based on their own discretion. 

You can be sure that missed payments will be reported – which will subsequently affect your credit score. The question is whether your regular, timely payments will be reported as well. Consequently, it is difficult to determine whether the credit behaviour demonstrated through your Zip account will affect your credit score in a positive way. 

Periodically ordering a free credit report to check your credit health is a great way to calculate credit score and tell if it’s being affected by your use of ZipPay or other buy now, pay later services. 

How does credit score work?

Your credit score tells lenders what level of risk they are taking when they approve you for credit. 

The higher your credit score, the better your credit health is.  A good credit score is typically demonstrated by timely repayments and a diverse but small credit portfolio. As your credit score increases, the more likely it is that you will be approved when applying for new credit products such as personal loans, mortgages, and credit cards. A good credit score also gives you a better chance to be offered higher credit limits and lower interest rates. 

If, on the other hand, your credit has taken a beating, you might be offered less credit, given a much higher interest rate, or have your application for credit declined. But it’s not all bad – these days, your credit is assessed on more than just the blemishes on your record. Credit reporting agencies now also consider your history of repayments in the past two years – so if you experienced a rough spot 18 months ago but have been making regular repayments for the last 10 months, you’re well on your way to rebuilding your credit health and taking control of your personal finance. 

What affects your credit score?

Your credit score can be affected by a number of things, such as the following:

  • Defaults on your personal loan, mortgage, or credit card payments
  • Excessive hard credit checks by lenders due to multiple applications for credit within a short period
  • Unpaid utility bills or later repayments on a buy now, pay later service
  • Multiple applications for balance transfers
  • Payday loans 
  • Bankruptcy or court judgements 

Thanks to changes in the way credit is reported, it’s now much easier to learn how to improve credit score – and put those lessons into action. 

How to improve your credit score?

Thanks to comprehensive credit reporting, your positive credit behaviours now also influence your credit rating – so the sooner you can demonstrate a consistent pattern of repayments (by making smart choices around managing your debt), the sooner your credit score will begin to improve. This is the number one way how to increase credit score.

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Does ZipPay Affect Credit Score?

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Transparent and
simple pricing

Interest rate

6.95 %
to 22.95 %

Comparison rate*

8.34 %
to 24.33 %

Establishment fee
(Direct applications)

$395 for loans between $5,000 and $15,000

$495 for loans between $15,001 and $50,000

Monthly fee


Loan terms

Minimum 3 years

Maximum 5 years

Early exit fees


*This comparison rate is based on an unsecured variable rate personal loan of $30,000 for a term of 5 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. $495 establishment fee and $10 monthly fee applies. Comparison as of: 06/06/2022

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