Did you know that trendy “Buy Now Pay Later” (BNPL) options on quick commerce apps and websites could quietly damage your credit score if you’re not careful? As highlighted by Business Today, young Indian consumers are increasingly falling into BNPL traps, unaware that missed or late payments are reported to credit bureaus like CIBIL, affecting their creditworthiness. What may seem like a convenience can quickly snowball into financial stress, reduced loan eligibility, and a hard hit to your CIBIL score.
In this article, we’ll unpack how Buy Now Pay Later (BNPL) and CIBIL Score are interconnected, what you need to know before opting in, and how platforms report your behavior to credit bureaus. We’ll also explore how to bounce back—especially if you’ve already missed a few payments.
BNPL is a short-term micro-credit facility that allows consumers to purchase goods and services immediately and pay later—often in interest-free installments ranging from 15 to 90 days. BNPL schemes on e-commerce platforms like Amazon, Flipkart, etc., have made it easy to buy everything from smartphones to groceries without upfront payment.
It appeals most to young salaried professionals, freelancers, and students—offering instant gratification with minimum documentation.
But what’s not as widely advertised is this: BNPL is a credit product. And like any loan, it impacts your credit report.
Meet Neha, a 25-year-old freelance graphic designer in Bengaluru. She used BNPL to buy a ₹20,000 smartphone, planning to repay in four installments of ₹5,000. Work slowed down, payments got delayed, and two EMIs were missed.
Within a month, her CIBIL score dropped from 720 to 680—a red flag for lenders. The BNPL provider reported her delay, and it showed up on her credit history as a “late payment.”
Neha was shocked. She thought BNPL was “casual credit,” not something that could affect her future personal loan or home loan eligibility.
Let’s break it down.
Every BNPL transaction—whether it’s ₹1,000 or ₹50,000—can show up on your credit report if the lender is RBI-registered and reports to a bureau like CIBIL, Experian, or CRIF High Mark.
Here’s what gets tracked:
Just like credit cards, the BNPL impact on credit score depends on how responsibly you repay.
While credit cards offer longer tenures and clearer reporting mechanisms, BNPL has its own quirks:
Feature | BNPL | Credit Cards |
Interest-Free Period | Yes (usually 15–90 days) | Yes (up to 50 days) |
Credit Score Impact | Yes | Yes |
Reported to CIBIL? | Often Yes | Always |
Payment Flexibility | Lower | Higher |
Risk of Overuse | High | Medium |
If left unmanaged, BNPL loans can quietly add up and impact your CIBIL score and BNPL loans performance record—making you appear riskier to future lenders.
Multiple missed BNPL payments can drastically reduce your score by 50–100 points over time
To use BNPL wisely, follow these practical steps:
Use apps or reminders to track due dates. Never let multiple BNPL services overlap without a plan.
Set automatic UPI or net banking payments where possible. Even a one-day delay can be reported.
Avoid using BNPL for essential recurring expenses like groceries or bills. Use it only for planned, one-off purchases.
Go to CIBIL’s official website and check your score. If you see a BNPL delay, act immediately.
If you’ve already missed a payment, respond quickly. Negotiate or request a restructure before it escalates.
So you’ve missed a few payments. Maybe you’re juggling BNPL loans across platforms. Maybe calls or emails from third-party recovery agents are giving you anxiety.
This is where SingleDebt steps in.
SingleDebt is India’s first ISO 9001/27001 certified debt solutions platform offering:
If you’re feeling overwhelmed, unsure how to deal with BNPL repayment pressure or a sudden CIBIL drop, our team of experts can help you create a realistic, legal plan to regain financial stability.
Tempted by another BNPL deal? Before you click “Pay Later,” ask yourself:
Let SingleDebt step in.
From legal protection to repayment solutions, they’ll help you rewrite your credit story—with confidence.
Yes. BNPL is a form of credit. Timely payments can help maintain your score, but any late or missed payments are reported to credit bureaus like CIBIL and can significantly lower it.
Yes. Lenders can report any BNPL transaction, whether it’s for a small or large amount. Every transaction is treated as a short-term loan on your credit report.
If you miss a payment, your CIBIL score will drop because the default is reported. This makes you appear riskier to lenders, which can lead to the rejection of future loan applications like personal or home loans.
First, clear your outstanding dues with the BNPL provider immediately. Then, regularly monitor your CIBIL report. If you have multiple debts, consider seeking help from a debt management company to create a repayment plan and rebuild your score.
