Interest-free payment providers such as Afterpay, Openpay and zipMoney, provide a “buy now, pay later” style credit and are growing at an alarming rate. And with Christmas right around the corner, I wonder if this new credit crazy sweeping the retail world will cause a serious case of the credit crunch blues this January and February.

AfterPay allow you to purchase now, and pay off your purchase in 4 fortnightly instalments. So those who see this as an option to splurge this Christmas may find the repayments in January and February quite painful as the Post-Christmas festivities will be limited as all disposable income goes to pay off Christmas all the way through to March. Ouch!!

A bigger concern for the Blackbox Finance team is what it’s doing to YOUR CREDIT SCORE. Consider this, you buy 10 Christmas presents on your credit card. Not ideal as you’re paying interest on the purchases but if you miss one payment, it’s ONE payment that might hit your credit score as late. Now consider what happens to you with AfterPay, you forget to transfer money into the right account and the AfterPay payments can’t be taken. That’s 10 hits on your Credit Score. And 10 hits can kill you score limiting your ability to get a car loan, personal loan or even Home Loan.

If you don’t repay (from Afterpay’s Terms of Service)
“Afterpay reserves the right to report any negative activity on your Afterpay Account (including late payments, missed payments, defaults or chargebacks) to credit reporting agencies.”

Now we definitely aren’t telling you not to use AfterPay and other systems, we are just trying to help you protect your Credit Score. We would hate to see those really cool presents ruin your score and limit your ability to lend for an extended period. Make sure you have money in your account on the designated AfterPay direct debit dates. Each purchase is a potential of 4 hits on your Credit Score if you’re not on top of the repayment schedule.


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Want to know more about Afterpay, Openpay and zipMoney click on each for a Finder review.

If you have any questions or concerns please contact us at Blackbox Finance, there is often a solution to low scores or even defaults on your file. Let us show you how, call 1300 70 12 17 or

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