How AfterPay affects Your Borrowing Capacity | JR Prosperity Partners


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How AfterPay affects your borrowing Capacity

We all want to make our money stretch this holiday season and what better way than to buy now pay later with services such as AfterPay. 

And who can blame you? 

Splitting repayments over 6 weeks, no credit check and you get your purchases instantly.

In fact, the humble Sydney-born company has proved that this model is extremely popular when you look at the growth of the company on an international level, turning its founders into Billionaires.

But how does this affect your borrowing capacity? 

Contrary to what many have reported, Afterpay doesn’t affect your credit rating, as noted on their website which is good news for anyone considering using AfterPay. 

So, can it affect your borrowing capacity? 

Yes, and no. 

It depends on the lender. Some lenders will take your Afterpay purchasing history into consideration, just like any other financial commitments you may have so make sure you keep on top of payments and don’t go beyond your capacity, but from a credit rating point of view, it doesn’t. 

So, should you use AfterPay? 

Just like anything in life, if you use it wisely and in moderation, it’s a good service. 

This is general advice only. Please contact your a qualified finance broker for financial advice.