Can you use Buy Now Pay Later services with no credit check?

Buy Now Pay Later services (BNPL) allow you to make a purchase but pay for it further down the line. It makes for a convenient way to split the cost of something into manageable payments, often with no credit check required. Buy Now Pay Later can be an appealing plan for consumers with bad credit or who may have been financially excluded from having a credit card.

A big advantage of Buy Now Pay Later is that no credit check may be required, or if a check does take place it may be a soft credit check rather than a hard check that gets recorded in your credit report. Even so, there are some drawbacks to Buy Now Pay Later so make sure you’ve got all the facts before you commit to spreading out the cost of a payment using a plan when you purchase.

How does Buy Now Pay Later work?

Providers typically do not require credit checks for Buy Now Pay Later, making them an accessible option for consumers with bad credit or no credit history at all. BNPL aims to make purchasing more attainable without the need for rigorous credit screenings, and usually works in one of the following formats:

• Installment Plans: This splits the total cost of an item into chunks of equal payments, often to be paid in bi-weekly or monthly installments. A £300 purchase could be divided into three separate £100 installments to be paid over the course of three months.
  
  

• Pay Later: Some Buy Now Pay Later schemes allow customers to defer payments until a later date, for example until 30 days after purchase. This can be a good option for those who have guaranteed income in the future but need an item or service urgently.
  
  

• Flexible Payment Plans: Some providers may offer customers a bespoke repayment schedule that best fits their individual financial situation.

What is the difference between soft and hard credit checks?

Some Buy Now Pay Later plans may not conduct any credit check at all. Others will, but in the form of a soft or hard credit check.

If you have bad credit, then a hard credit check is one to avoid in this case. A hard credit check involves a complete search of your credit report, and each check is recorded on that report. Too many hard credit checks in a short space of time can negatively affect your credit score, making it harder for you to get approved for credit.

A soft credit check is more common for Buy Now Pay Later plans, which is a big part of their appeal. A soft check is where a company takes an initial look at certain information in your credit report, without conducting a full in-depth examination. Crucially, soft credit checks are not recorded so won’t affect any future applications you make.

Some examples of Buy Now Pay Later plans with no credit check include:

• Klarna performs a soft credit check on their “Pay in 4” and “Pay in 30 Days” BNPL plans, meaning no credit check will show up on your credit report. Note that their monthly Klarna Financing scheme does conduct a hard credit check, however.
  
  

• Zilch allows you to split payments into interest-free installments over six weeks. They only perform a soft credit check, which won’t affect your credit score. They also offer cashback rewards on some purchases.
  
  

• Clearpay also offers payment separated into four interest-free chunks. There is no hard credit check, just a soft check during the application process.
  
  

• Zip has no credit check beyond a soft check to assess eligibility, and enables you to divide purchases into interest-free installments.
  
  

• PayPal offer a “Pay in 3” service which only has a soft credit check that won’t be recorded on your credit score.

As well as no credit check, what are the pros and cons of Buy Now Pay Later?

As with all financial tools, Buy Now Pay Later has its pros and cons – and it’s worth having a complete picture before you commit to this payment plan, even if the no credit check is particularly appealing to you.

Pros of Buy Now Pay Later

• No interest if paid on time: Many Buy Now Pay Later services offer interest-free periods, meaning you can split a payment into manageable chunks without paying more than the original price. Not all BNPL plans offer this.
  
  

• Increased access to goods and services: one of the major benefits of Buy Now Pay Later is that it lets people access goods and services right away. This can be important in the case of urgently-needed services like power or water as it means consumers can get access immediately even if they don’t have the cash up front.
  
  

• Flexible repayment options: many Buy Now Pay Later providers offer flexible payment schedules, tailored to suit the circumstances and budgets of different individuals.

Cons of Buy Now Pay Later

• Late fees and penalties: Some Buy Now Pay Later plans do offer interest-free payments, but may still charge sizeable late fees if you happen to miss a payment.
  
  

• Potential for overspending: Because BNPL services are so easy to use, there’s a risk that consumers could be drawn into making purchases that they can’t afford over the long term. Coupled with late fees and penalties, this could lead to a build-up of debt.
  
  

• Credit score impact: Although there’s no credit check required for most Buy Now Pay Later schemes, providers may still report missed payments in ways that negatively affect your credit score and potentially harm your access to financial products in the future.
  
  

• May not be suitable for large purchases: Buy Now Pay Later is usually intended as a scheme for short-term financing, meaning it may not be available for large purchases with long repayment periods.
  
  

Using Curve for Buy Now Pay Later with no credit check

One of the best and easiest ways to manage Buy Now Pay Later purchases is by using Curve. By adding your debit or credit card to Curve, you can keep track of your payments and spending more efficiently.

Another major benefit to using Curve with Buy Now Pay Later schemes is the ability to move purchases from one card to another, up to 120 days after you’ve made a transaction. This can be a great way to manage your debt and avoid high interest payments. You can simply move old purchases from one credit card to another and buy yourself more time. 

Buy Now Pay Later plans for those with bad credit

Buy Now Pay Later plans, with no credit check required, can be a huge difference-maker for those with bad credit. It opens up access to essential goods and services even for those with a poor credit score who would be excluded from other financing options. BNPL is not without its disadvantages, though, so make sure you carefully consider all the pros and cons of Buy Now Pay Later before committing to this payment method.

Using Curve can help managing your BNPL even more convenient, as well as allowing you to move payments from one card to another even weeks or months after the point of purchase. Paired together they can make a powerful tool to boost your financial options – even if you have bad credit.