Buy Now, Pay Later:

Introduction 

Buy Now Pay Later (BNPL) is gaining popularity in Malaysia, especially among young shoppers and online buyers. With providers like Atome, Grab PayLater, and Shopee SPayLater offering easy instalment plans, it is tempting to split payments without worrying about interest. But here is the big question: Does using BNPL affect your credit score in Malaysia? For now, the answer is no. But that is changing quickly. With the upcoming Consumer Credit Bill, BNPL services will soon impact your credit profile (Malay Mail, 2024). 

In this article, we explain how BNPL works, the credit risks involved, and what you should do to protect your financial health. 

BNPL in Malaysia: What Is It? 

BNPL allows you to buy items and pay over several instalments, usually interest-free if payments are made on time.  

Common BNPL providers in Malaysia: 

• Atome 

• Grab PayLater 

• Shopee SPayLater 

It is fast, requires no upfront credit check, and works for both online and offline purchases. 

Current Impact on Your Credit Score (2025): 

• BNPL usage is not reported to credit bureaus like CCRIS or CTOS (Baker McKenzie, 2024). 

• Missed payments may lead to late fees, but they will not affect your credit report. 

• Overusing BNPL can still lead to unmanageable debt, which affects your ability to repay other loans (Channel News Asia, 2024). 

What Is Changing with the Consumer Credit Bill 2025? 

Once the Consumer Credit Act takes effect, BNPL providers will need to follow new regulations (Consumer Credit Oversight Board Task Force, 2025): 

• Mandatory credit reporting: Your BNPL borrowing and repayment history will be shared with credit bureaus. 

• Impact on score: 

• Timely payments may improve your credit score. 

• Missed payments may lower it. 

• More transparency for lenders: Banks will be able to view your BNPL usage when assessing your loan or credit card applications. 

Quick Reference Table: BNPL and Credit Health in Malaysia 

Mistake 1: Thinking BNPL Is Free Money 

BNPL may feel like an easy way to delay payment, but it is still debt. Using multiple BNPL providers increases the chance of late payments or overlapping bills.  

How to Avoid: Use BNPL only for essential or planned purchases and stick to one provider.  

Tip: Set payment reminders or enable auto-debit to stay on track. 

Mistake 2: Ignoring How BNPL Affects Future Loans 

When BNPL activity becomes visible to credit bureaus, lenders will assess your repayment patterns. Too much short-term borrowing can affect your loan eligibility. 

Real Case: In countries like Australia, heavy BNPL usage has led to loan rejections, even without missed payments, as it indicates poor financial habits (Channel News Asia, 2024). 

Tip: Check your credit score with FinDoctor before applying for loans to see where you stand. 

Mistake 3: Missing Payments and Accumulating Fees 

Late BNPL payments come with penalties, typically between RM10 and RM30 per instalment. Some accounts may even be sent to collections. 

How to Avoid: Keep track of payment dates and settle dues quickly.

Tip: If you miss a payment, pay it off as soon as possible to avoid escalation. 

Bonus Tip: Start Monitoring Your Credit Today 

Even if BNPL is not currently affecting your credit score, it will soon. Monitoring your credit gives you control and helps you prepare for future financial decisions. 

• Know your financial standing 

• Catch errors early 

• Build a strong credit profile for upcoming loan or credit card applications 

Conclusion 

BNPL is convenient, but it is still a form of credit. With the Consumer Credit Bill 2025, your repayment habits will soon impact your credit score in Malaysia. The key is to use BNPL responsibly, pay on time, and stay informed about regulatory changes. 

To check your credit score or explore loan options from over 20 banks, visit FinDoctor.my for smart and secure financial planning.