So just received an email that says :
This means credit checks on increase of limits which was not the case previously. Your thoughts ?
BNPL services are proving to be such a trap for the younger kids coming out of high school
I see that as more a parenting/education failure. Teaching my kids how to be financially responsible is certainly something I have taken on board. Don't blame the service because some don't know how to use it.
Don't blame the service because some don't know how to use it.
Not every kid gets the perfect parent, and a financially uneducated parent will likely raise a financially uneducated kid, and if the kid isn't told by their parent, or school, and the company doesn't make it obvious that using their services will affect your credit score, then how would the kid know better?
Schools certainly don't teach about credit scores, so why can't I blame the product?
Schools, government etc teach about how bad smoking is. No one teaches our kids about debt, except parents, and not all of them do unfortunately
Yep, predatory product designed to make things seem cheaper than they are, to get people to buy things they don't need.
Parenting is the key. But there's also something to be said for targetted advertising using billions of data points about your child's online activity in order to nudge and manipulate them with high precision at an age when their brains are not yet fully physically developed and most are generally considered 'highly impressionable'.
I find AfterPay makes you more aware of your spending. If you buy a burger with cash, you hand over the cash, eat the burger, then it's like it never happened. Pay with Afterpay and you a confirmation notification, email, then four payment notifications, four emails, spread out over two months reminding you about the burger again and again.
I only use it on amounts over 200 to 500 . It helps me keep money in offset longer .
Your point on trapping younger kids is valid thats how they earn
This means credit checks on increase of limits which was not the case previously. Your thoughts ?
Sounds like only those with bad credit would be concerned about this……
First they came for the bad debtors, And I did not speak out
Because I was not a bad debtor…..
LOL you're free to lend them money if you want! Make a stand, and lend these people now, no questions asked!
I understood this reference.
It depends how AfterPay do the credit check. If it's an inquiry then it will lower your score a tad and appear on the record. Maybe 20 points, judging by past experience when applying for credit like a mobile phone plan.
I use AfterPay regularly and direct all payments from my credit card. Pay off everything on time, in full, no interest. Lets me keep my money offsetting my mortgage for longer.
Pay off everything on time, in full, no interest. Lets me keep my money offsetting my mortgage for longer.
This is the way.
Pay off everything on time, in full, no interest. Lets me keep my money offsetting my mortgage for longer.
Why do you need AfterPay involved in this? Doesn't just using your credit card let you do this?
AfterPay splits half the repayments into the credit card statement in two months time.
Does "two months time" mean longer than 55 days?
@tenpercent: Lets see, if you purchase through afterpay less than 14 days left of your CC cycle, the first repayment won't be until the next invoice. So, yes, it means longer than 55 days.
A hit on your credit file from a BNPL facility can be detrimental to you obtaining better credit (car loan etc).
Until now, Afterpay doesn't seem to have hit credit files
My credit score is over 1000 so any impact on me will be minimal. The score usually recovers a few months after a credit check. But for someone on a low score it could be a problem.
My credit score is near perfect….just under 1000….I thought 1000 was the top score??
I just assumed Afterpay did credit checks already. If they didn't surely they should have.
To encourage innovation in the provision of finance products BNPL were made exempt.
Currently BNPL products:
are not regulated under the Credit Act because they fall under the exemptions available to certain types of credit in Schedule 1 of the Credit Act (the National Credit Code).
are not subject to responsible lending standards or other requirements of the Credit Act, and BNPL providers do not need to hold an Australian Credit Licence (ACL).
Bro, 99.8% of Australians are using afterpay so don’t bother.
I don't use Afterpay because…
…I'm not poor and there seems to be no advantage to use Afterpay.
Only a poor person doesn't manage spending based on cash flow
Hence I don't use Afterpay.
I tend to agree, the advantage of spreading payments over such a limited time seems to be more of a nuisance than a benefit.
Bearish signal
Buy gold?
Albo's Afterpay
"These changes are mainly driven by new Australian laws for Buy Now, Pay Later services, with a few extra updates to reflect your rights and obligations, as well as ours." - Afterpay email.
I do not need to use afterpay but I do.
Psychologically it makes me feel better about buying things that are more than a certain amount
Most of the time I go home and pay it off within 7 days. I don't miss the $ so much when I split it up but when it all goes in one hit at the shop I feel sad.
My limit is 4k, I don't use it all and don't want or need a bigger limit so I guess they won't credit check me.
I just want Zip to increase my limit, man
My thoughts - I only use after pay if it’s part of some deal. Otherwise CBF. If they’re gonna start doing credit checks I’m out. I don’t need that on my file.
So will they be doing credit checks on an account that's not asking for a speeding increase?
Are existing accounts going to be checked?
I don't use Afterpay because I'd rather just know what I was spending, and I don't need to smooth payments over multiple payments…
BNPL services are proving to be such a trap for the younger kids coming out of high school, and some are already (profanity) up their credit scores