How convenient is it to buy something and not have to pay for it straight away? But are you aware of the consequences when trying to apply for a loan?
Buy now pay later, will it affect your loan? Short answer is yes. The reason why it will affect your loan, is that lenders look at your living expenses, they have to go through your living expenses in quite detail, and if they see a lot of after pay, zip pay where you’re putting your purchases on credit then lenders will often question if you are able to manage your cashflow and to them, it also means that you’re purchasing products on borrowed money.
Now there is nothing wrong with using these facilities however lenders will factor in those repayments, even though we know they’re over a very short period of time, but banks have to take them into consideration when calculating your current debts which can then greatly impact how much money you can borrow on your loan.
So to put yourself in a position to get the loan that you want, make sure you pay out the after pay or zip pay loans before you lodge an application and get confirmation, that it’s all closed. Lenders won’t look at it and see it as a liability and won’t reduce the capacity for you to borrow what you’re looking for.
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