Search

Does Cash Now Pay Later Affect Your Credit Score?

If you’re wondering how Cash Now Pay Later impacts credit score, we’re here to explain how!
Does Cash Now Pay Later Affect Your Credit Score?
The concept of “Cash Now Pay Later” (CNPL) isn’t new. Traditionally, stores hold on to an item until you can afford to pay for it, CNPL will help you walk out of the store with your item while utilizing a plan to pay for it over time.

CNPL is the way to go right now and the most convenient way to get what you need when you need it and to pay for emergencies. But if you’re wondering how Cash Now Pay Later impacts credit score, we’re here to explain how. We’ll get to that in a minute. Let’s get down to basics first.

What is Cash Now Pay Later?

As the name suggests, CNPL is a new form of layaway. You subscribe to Beem, you become eligible to get a certain amount of money and then you use that money to take your purchase home. How do you pay back then? It totally depends on the payback arrangement you have with Beem. When you initially subscribe, you’ll be able to set up terms to pay off your purchase over a few weeks or months — without interest FYI!

How Does Cash Now Pay Later Impact Your Credit Score?

It doesn’t! That’s the good news. What sets Beem apart is that we don’t do credit checks. A small background check on your banking transactions is done when you initially subscribe to the Beem app. Nothing hardcore don’t worry, it’s a small inquiry that is carried out to see which CNPL plan will suit you best. 

A payment history check is done because it is a factor that determines what plan you qualify for. So, making on-time payments could help qualify for a better plan. But don’t worry if you’ve got a bad credit score, it doesn’t disqualify you from getting Cash Now Pay Later with Beem

But once you sign up for CNPL with Beem, we recommend a repayment plan that will work best for you. 

How Can You Avoid Hurting Your Credit?

Yes, signing up for Beem has nothing to do with your credit score when it comes to Cash Now Pay Later. But maintaining a credit score, in the long run, is good for you. A high score is what will help you qualify for a lower insurance premium and get approved for a home or apartment rental. You will also be able to save money on your security deposit if you have higher credit scores.

So, monitor your credit score and stay up-to-date with your credit status always. Make it a priority to pay your bill on time and in full every month. That way you won’t risk having missed a payment or have default status attached to your credit file.

Most importantly, pay off your balance as quickly as possible. It’s important to be a responsible borrower by making payments in full, on time. This will improve your credit no doubt.

The Bottom Line

Cash Noy Pay Later is worth considering if you’re in a cash crunch. You know you have the means to pay it off over the time given to you by Beem. Don’t set yourself up by buying something you can’t afford to pay for, even over time.

Also, make all your payments on time so you qualify for better CNPL offers and the right type of financing when you need it. But ultimately CNPL or not, make it a priority to establish a solid credit history and maintain it well. 

Was this helpful?

Did you like the post or would you like to give some feedback? Let us know your opinion by clicking one of the buttons below!

👍👎

Author

Picture of Shirlene Grace Isaac

Shirlene Grace Isaac

Shirlene puts words on the Internet because she loves to do so and also for the money! She is a singer, songwriter, occasional poet, artist and muser — all in the body of a 20 something. She's a taleteller of sorts often looking for opportunities to narrate stories untold.

Editor

This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

Related Posts

Rebuilding Your Credit After Setbacks: A Step-by-Step Guide
Rebuilding Your Credit After Setbacks: A Step-by-Step Guide
Why Your Credit Score Affects Your Loan Rates and How to Improve It
Why Your Credit Score Affects Your Loan Rates and How to Improve It
Lower Credit Utilization: The Easiest Way to Improve Your Credit Score
Lower Credit Utilization: The Easiest Way to Improve Your Credit Score
Avoid Late Payments: Simple Tips to Protect Your Credit Score
Avoid Late Payments: Simple Tips to Protect Your Credit Score
How to Get 10 Dollars Fast
How to Create a Custom Credit Improvement Plan That Works
How to Prepare for Major Purchases by Tracking Your Credit Score Effectively
How to Prepare for Major Purchases by Tracking Your Credit Score Effectively 
Features
Essentials

Get up to $1,000 for emergencies

Send money to anyone in the US

Ger personalized financial insights

Monitor and grow credit score

Save up to 40% on car insurance

Get up to $1,000 for loss of income

Insure up to $1 Million

Plans starting at $2.80/month

Compare and get best personal loan

Get up to 5% APY today

Learn more about Federal & State taxes

Quick estimate of your tax returns

1 month free trial on medical services

Get paid to play your favourite games

Start saving now from top brands!

Unlock Low-Interest Loans Today!

Lower Rates, Simplified Payments, Stress-Free.

Save big on auto insurance - compare quotes now!

Zip Code:
Zip Code: