Buy now pay later to impact credit scores of millions

Buy now, pay later payments are to impact the credit scores of millions of people for the first time, The Telegraph can reveal. Zilch, a British buy now pay later business with three million users, is to start sharing data on customers' balances and repayments with credit rating agencies in a move that could see people’s ability to borrow restricted if they fall behind on payments. “For the first time in the UK, customers can now build their credit scores without relying on revolving high interest rate bearing products,” Mr Belamant said. “We hope by the middle of the year we will see regulation move in on this space.” Mr Belamant, the company's 38-year-old South African co-founder, added that new regulations should also ban customers from paying off their buy now, pay later debt with credit cards, which could get them into a spiral of debt. A Zilch spokesman said: “From this month, Zilch is integrating with all reputable credit reporting agencies to start influencing customer’s credit scores, giving them the opportunity to improve their scores if they keep up to date with Zilch and all their credit payments.” The spokesman said the change would enable “people in Britain who responsibly borrow credit through buy now, pay later and repay on time, to both manage cash flow and improve - and in some cases, build - their personal credit records”.