Does Afterpay Affect Credit Score?

Understanding how "buy now, pay later" services like Afterpay impact your credit score is crucial for financial health. This guide clarifies Afterpay's reporting practices and offers actionable insights to manage your credit effectively, ensuring you make informed decisions about your financial future.

Does Afterpay Report to Credit Bureaus?

The most direct answer to "Does Afterpay affect credit score?" hinges on its reporting practices. As of 2025, Afterpay's standard reporting policy is that it does not typically report your on-time payment history to the major credit bureaus (Equifax, Experian, TransUnion) for its standard "Pay in 4" product. This means that consistently making your scheduled payments on time will not directly contribute to building a positive credit history through Afterpay. Your responsible use of the service, in terms of timely payments, remains largely invisible to traditional credit scoring models.

However, this is not the complete picture. While regular, on-time payments for the standard "Pay in 4" service are generally not reported, there are specific circumstances under which Afterpay does engage with credit reporting agencies. Understanding these exceptions is crucial for a comprehensive grasp of how Afterpay might influence your creditworthiness. The primary scenario where Afterpay's actions can negatively impact your credit score involves missed payments that escalate to delinquency and potential referral to a third-party collection agency.

This distinction is vital. For millions of users, Afterpay serves as a convenient payment tool without directly influencing their credit reports. The absence of positive reporting means it's not a tool for credit building in the same way a credit card or loan is. Conversely, the potential for negative reporting in cases of severe delinquency highlights the importance of adhering to payment schedules. This nuanced approach means that while Afterpay won't boost your score through good habits, it can certainly damage it through neglect.

The landscape of "buy now, pay later" (BNPL) services is evolving, and regulatory scrutiny is increasing. While current practices indicate no routine positive reporting for "Pay in 4," it's always advisable to check Afterpay's most up-to-date terms and conditions, as policies can change. Furthermore, understanding the difference between "soft" and "hard" inquiries, and how they relate to credit checks, is also pertinent when discussing BNPL services.

Details on Afterpay's Reporting Practices

Afterpay's business model for its core "Pay in 4" product is designed to offer a payment installment plan without the traditional credit-building mechanisms associated with credit cards or installment loans. This means that when you use Afterpay to split a purchase into four interest-free installments, your timely payments are not being submitted to Experian, Equifax, or TransUnion. This is a key differentiator from credit cards, where every transaction and payment is recorded and contributes to your credit history.

The rationale behind this approach is multifaceted. For Afterpay, it allows them to onboard a wider range of customers, including those who may have limited credit history or are looking to avoid adding more tradelines to their credit report. For consumers, it offers a way to manage cash flow without the immediate impact on their credit score that a new credit card application might have. However, this also means that using Afterpay responsibly does not actively help you build a positive credit score. It's a neutral activity in terms of credit building, unless things go wrong.

The crucial exception to this non-reporting policy arises when a customer falls significantly behind on their payments. Afterpay, like any lender or service provider, has mechanisms to recover overdue funds. If your account becomes severely delinquent, Afterpay may engage a third-party debt collection agency. It is at this stage, when an account is sent to collections, that your payment history can be reported to credit bureaus, leading to a significant negative impact on your credit score. This is a standard practice across the financial industry, and Afterpay is no exception in this regard.

It's also worth noting that some BNPL providers offer different product tiers or services that might have different reporting policies. For instance, some may offer longer-term installment plans that could potentially be reported. As of 2025, Afterpay's primary "Pay in 4" service remains the focus for most consumer inquiries, and its reporting remains largely non-impactful for on-time payments. Always refer to the specific terms of service for any Afterpay product you use to ensure you have the most accurate information.

Why Isn't Afterpay Reporting Positive Activity?

The decision by Afterpay and many other BNPL providers not to report positive payment history to credit bureaus is a strategic one, driven by several factors. Primarily, it aligns with their goal of providing a flexible payment option that doesn't necessarily require a deep dive into a user's creditworthiness for every transaction. Traditional credit products, like credit cards and personal loans, are designed to assess risk and build a credit profile. BNPL services, especially those focused on short-term installments, often operate on a different risk assessment model.

By not reporting positive activity, Afterpay can appeal to a broader audience. This includes younger consumers, individuals with thin credit files, or those who are actively trying to limit the number of inquiries and accounts on their credit reports. For these users, the ability to make purchases and manage payments without directly impacting their credit score is a significant draw. It removes a potential barrier to entry that might exist with traditional credit products.

Furthermore, the administrative burden and cost of reporting to credit bureaus for every single "Pay in 4" transaction would be substantial. Credit bureaus have specific data formats and reporting requirements. For a service that facilitates millions of small transactions daily, integrating this into a reporting system for positive payment history would be complex and expensive. The current model, where reporting is reserved for severe delinquency, is more cost-effective and addresses the primary risk for the provider.

However, this lack of positive reporting means that users cannot leverage Afterpay as a tool to actively build or improve their credit score. If your primary financial goal is to enhance your credit profile, relying solely on Afterpay for payments will not achieve that. You would still need to utilize traditional credit products like credit cards or installment loans and manage them responsibly to see improvements in your credit score.

How Afterpay Can (and Cannot) Affect Your Credit Score

The question of whether Afterpay affects your credit score is nuanced. The most common scenario is that it does not directly affect your credit score in a positive or negative way when you use its standard "Pay in 4" service and make all payments on time. However, this is not universally true, and understanding the exceptions is key.

Let's break down the ways Afterpay can and cannot influence your credit score:

Scenarios Where Afterpay Does NOT Affect Your Credit Score

On-time payments for "Pay in 4": As mentioned, when you use Afterpay to split your purchase into four installments and pay them back on schedule, this positive payment behavior is generally not reported to the major credit bureaus. Therefore, it does not contribute to building your credit history or improving your score.
No credit check for "Pay in 4" sign-up (typically): For the standard "Pay in 4" service, Afterpay usually performs a "soft" credit check or a non-credit check assessment to approve your application. Soft inquiries do not affect your credit score. This means applying for Afterpay itself doesn't hurt your credit.

Scenarios Where Afterpay CAN Affect Your Credit Score

Late or missed payments: If you miss a payment or are significantly late, Afterpay may report this delinquency to credit bureaus. This negative information can significantly lower your credit score. The exact timing and reporting thresholds can vary, but severe delinquency is almost always reported.
Accounts sent to collections: If your overdue Afterpay account is passed to a third-party debt collection agency, this is a serious negative event that will be reported to credit bureaus and will severely damage your credit score.
Potential for future reporting changes: While current policies are as described, the BNPL industry is under increasing scrutiny. Regulators and credit bureaus are exploring how to incorporate BNPL usage into credit scoring models. It's possible that future iterations of Afterpay's services, or industry-wide changes, could lead to more comprehensive reporting, both positive and negative.

The key takeaway is that for the majority of Afterpay users who utilize the "Pay in 4" service and pay on time, their credit score remains unaffected. The risk to your credit score comes only when you fail to meet your payment obligations. This makes responsible usage paramount, not for credit building, but for avoiding credit damage.

Afterpay vs. Credit Cards: A Credit Score Comparison

The fundamental difference in how Afterpay and credit cards impact your credit score lies in their reporting practices.

Credit Cards:

Reporting: Credit card companies report your entire payment history, credit utilization, account age, and types of credit to all three major credit bureaus.
Impact:
- Positive: On-time payments, low credit utilization, and long account history build a positive credit score.
- Negative: Late payments, high credit utilization, and defaults significantly lower your credit score.
Credit Building: Credit cards are a primary tool for building and improving credit scores.

Afterpay ("Pay in 4"):

Reporting: Typically does not report on-time payments to credit bureaus. It may report severe delinquencies or accounts sent to collections.
Impact:
- Neutral (mostly): On-time payments have no direct impact on your credit score.
- Negative: Late payments or accounts in collections can severely damage your credit score.
Credit Building: Not a tool for building credit history.

This comparison highlights that if your goal is to establish or improve your creditworthiness, credit cards are a far more effective tool. Afterpay serves a different purpose: facilitating purchases with manageable installments without the immediate credit implications of a traditional credit product, provided you pay on time.

The Real Impact: Late Payments and Collections

While Afterpay's standard "Pay in 4" service doesn't typically report positive payment behavior, its impact on your credit score can be severe when you fall behind. The crucial point is that delinquency and collections are where Afterpay's actions can directly and negatively affect your creditworthiness.

Late Payments and Your Credit Score

If you miss a payment or are significantly late on your Afterpay installments, the company has the right to report this to the credit bureaus. The exact threshold for reporting can vary, but generally, payments that are 30 days or more past due are considered delinquencies and are often reported.

Here's how a late payment can hurt your score:

Direct Reporting: When Afterpay reports a late payment to the credit bureaus, it appears on your credit report.
Payment History Impact: Payment history is the single most important factor in your credit score, accounting for about 35% of the FICO score. A single late payment can cause your score to drop significantly, potentially by tens or even over a hundred points, depending on your existing credit profile.
Reduced Score: This negative mark will remain on your credit report for up to seven years, continuing to affect your score during that period.

For example, if you have a credit score of 750 and miss a payment on Afterpay, your score could easily drop to below 700. This change can affect your ability to qualify for loans, mortgages, or even rent an apartment.

Accounts Sent to Collections

If missed payments continue and the account becomes severely delinquent, Afterpay may decide to send your account to a third-party debt collection agency. This is a more serious escalation and has a more profound negative impact on your credit score.

When an account goes to collections:

Reporting by Collection Agency: The collection agency will report the debt to the credit bureaus. This often appears as a separate negative item on your credit report, in addition to any late payment history already reported by Afterpay.
Severe Score Drop: Having an account in collections is a major red flag for lenders. It signals a significant inability to manage debt. This can lead to a substantial drop in your credit score, often making it very difficult to obtain new credit for several years.
Long-Term Impact: Similar to late payments, collection accounts typically remain on your credit report for seven years from the date of the original delinquency.

Consider this: if your Afterpay account is sent to collections, your credit score could plummet from a good range (e.g., 700+) to a very poor range (e.g., below 500). This makes obtaining any form of credit, from car loans to credit cards, extremely challenging.

Preventing Negative Reporting

The best way to avoid these negative consequences is to be diligent with your payments.

Set Reminders: Use calendar alerts or phone reminders for your payment due dates.
Link a Reliable Payment Method: Ensure the debit card or bank account linked to your Afterpay account has sufficient funds.
Contact Afterpay Immediately: If you anticipate difficulty making a payment, contact Afterpay's customer support before the due date. They may offer options or extensions, though these are not guaranteed and might have their own terms.
Avoid Overspending: Only use Afterpay for purchases you can comfortably afford and for which you have a clear plan to repay the installments.

By understanding the severe repercussions of late payments and collections, you can prioritize making your Afterpay payments on time, thereby protecting your credit score.

This is a common and important question for consumers looking to use "buy now, pay later" services. The answer for Afterpay's standard "Pay in 4" product is generally that they perform a soft credit check or a non-credit check assessment, which does not negatively impact your credit score.

Soft Credit Checks vs. Hard Credit Checks

It's crucial to understand the difference between these two types of credit inquiries:

Soft Credit Check (Soft Inquiry): This occurs when you check your own credit, or when a company checks your credit for pre-approval offers, employment screening, or account reviews. Soft inquiries do not affect your credit score. Afterpay typically uses soft checks to verify your identity and assess your eligibility for their service.
Hard Credit Check (Hard Inquiry): This occurs when you apply for new credit, such as a credit card, mortgage, or auto loan. Hard inquiries can slightly lower your credit score temporarily because they suggest you are seeking new debt. Multiple hard inquiries in a short period can be a red flag to lenders.

Afterpay's Assessment Process

When you sign up for Afterpay and make a purchase, they need to assess your ability to repay. For the "Pay in 4" service, this assessment is designed to be quick and accessible.

Initial Verification: Afterpay will verify your personal information, such as your name, address, date of birth, and phone number.
Soft Credit Check: They will then typically perform a soft credit check. This allows them to see a summary of your credit history without impacting your score. This helps them determine a spending limit and assess risk.
Non-Credit Based Assessments: In some cases, Afterpay might rely more heavily on non-credit-based information, such as your transaction history with them, your bank account details, or other data points, especially for smaller purchases or for users with limited credit history.

The purpose of this soft check is to manage risk for Afterpay and to comply with consumer protection regulations, not to penalize the applicant. Because it's a soft inquiry, it will not appear on your credit report as an inquiry that affects your score, and it won't lower your credit score.

Why This Approach?

Afterpay's strategy of using soft checks or non-credit-based assessments for "Pay in 4" is a key part of its appeal. It allows them to:

Onboard More Customers: By not performing hard credit checks, they can approve a wider range of applicants, including those with less-than-perfect credit.
Maintain User Experience: The application process is fast and doesn't require extensive credit checks that could delay a purchase.
Differentiate from Traditional Lenders: This approach positions Afterpay as a more accessible alternative to traditional credit products.

However, it's important to remember that while the sign-up process is generally credit-score-friendly, the subsequent usage of Afterpay can still impact your credit if payments are missed. Always be aware of the terms and conditions of any financial service you use.

Can You Build Credit History with Afterpay?

This is a critical point for anyone looking to improve their financial standing. The straightforward answer for Afterpay's standard "Pay in 4" product is no, you cannot build credit history with Afterpay.

Why Afterpay Doesn't Build Credit

Credit history is built by demonstrating responsible management of credit obligations over time. This involves having credit accounts (like credit cards, loans, mortgages) and making payments on them consistently and on time. Credit bureaus track this information and use it to generate your credit report and score.

As we've established, Afterpay's "Pay in 4" service typically does not report your on-time payment history to the major credit bureaus. This means that even if you use Afterpay for every purchase and pay every installment perfectly on schedule, this positive behavior is not being recorded on your credit report. Therefore, it does not contribute to:

Increasing your credit utilization ratio (which is not applicable here).
Demonstrating a history of managing installment payments.
Adding to your credit mix (a factor in some scoring models).
Extending your credit history length.

In essence, using Afterpay for on-time payments is like paying your utility bills on time – it's a good financial habit, but it's not typically reported to credit bureaus and therefore doesn't build credit.

What Afterpay IS Good For

While Afterpay isn't a credit-building tool, it serves other valuable financial purposes:

Budgeting and Cash Flow Management: It allows you to spread the cost of purchases over several weeks, making larger items more manageable without incurring interest.
Avoiding High-Interest Debt: For those who might otherwise turn to high-interest credit cards or payday loans for immediate needs, Afterpay offers an interest-free alternative (provided payments are made on time).
Convenience: It simplifies the payment process for many online and in-store purchases.

How to Actually Build Credit

If your goal is to build or improve your credit score, you need to focus on traditional credit products that are reported to credit bureaus. Here are effective strategies:

Secured Credit Cards: These are excellent for people with no or poor credit. You provide a cash deposit, which becomes your credit limit. Responsible use and on-time payments are reported.
Credit-Builder Loans: Some credit unions and community banks offer these loans. The money is held in an account while you make payments, and then you receive the loan amount (minus interest and fees) once it's paid off. Payments are reported.
Authorized User Status: If a trusted friend or family member with good credit adds you as an authorized user to their credit card, their positive payment history can reflect on your report.
Traditional Unsecured Credit Cards: Once you have a basic credit history, you can apply for standard credit cards. Focus on using them for small, planned purchases and paying the balance in full each month.
Installment Loans: Taking out and responsibly repaying an auto loan or a personal loan can also contribute positively to your credit history.

In summary, while Afterpay offers financial flexibility, it should not be considered a substitute for traditional credit-building strategies. To improve your credit score, you must engage with financial products that are designed to be reported to credit bureaus.

Strategies for Responsible Afterpay Use

Given that Afterpay can negatively impact your credit score if payments are missed, but doesn't help build it through on-time payments, responsible usage is paramount. The goal is to leverage its convenience without incurring debt or damaging your financial reputation.

1. Treat Afterpay Like a Debit Card, Not a Credit Card

This is the most fundamental piece of advice. While Afterpay allows you to defer payment, it's crucial to think of the money as already spent from your bank account. When you make a purchase, mentally subtract that amount from your available funds. This mindset helps prevent overspending and ensures you have the money ready when installments are due.

2. Budget Rigorously

Before using Afterpay, incorporate the installment payments into your monthly budget. Know exactly when each payment is due and ensure you have the funds allocated. If you're using Afterpay for multiple purchases, keeping track of all due dates and amounts is essential. A simple spreadsheet or budgeting app can be invaluable here.

3. Understand Your Payment Schedule

Afterpay's "Pay in 4" model typically involves four equal installments. The first is paid at the time of purchase, and the subsequent three are usually due every two weeks. Be acutely aware of these dates. Missing even one can trigger late fees and negative reporting.

4. Set Up Payment Reminders

Don't rely solely on your memory. Set up calendar alerts on your phone or computer a few days before each payment is due. Many banking apps also allow you to set up payment reminders or even schedule automatic transfers to ensure funds are available.

5. Link a Reliable Payment Method

Ensure the debit card or bank account linked to your Afterpay account is active, has sufficient funds, and is one you regularly monitor. Avoid linking a credit card, as this can sometimes lead to cash advance fees from your card issuer and doesn't help with budgeting discipline.

6. Avoid Using Afterpay for Impulse Purchases

The ease of "buy now, pay later" can be tempting for impulse buys. However, these are often the purchases that lead to regret and payment difficulties. Before using Afterpay, ask yourself:

Do I truly need this item?
Can I afford the total cost of the installments within my budget?
Will I still want or need this item when the payments are due?

7. Limit the Number of Afterpay Purchases

The more Afterpay purchases you have active simultaneously, the harder it becomes to track payments and manage your budget. It's wise to limit yourself to one or two active "Pay in 4" plans at a time, especially when you're starting out.

8. Know When to Say No

If you're struggling financially, or if a particular purchase would strain your budget, it's better to postpone the purchase or find a more affordable alternative than to rely on Afterpay and risk missing payments.

9. Review Your Afterpay Account Regularly

Log in to your Afterpay account periodically to review your upcoming payments, past transactions, and any outstanding balances. This helps maintain awareness and catch any discrepancies early.

By implementing these strategies, you can harness the convenience of Afterpay while safeguarding your financial health and protecting your credit score from unnecessary damage.

Afterpay vs. Other BNPL Services: Credit Score Impact

The "buy now, pay later" (BNPL) market has exploded, with numerous services offering similar installment payment options. While Afterpay is one of the most prominent, understanding how its credit score impact compares to competitors is crucial for informed decision-making. As of 2025, the general trend among BNPL providers for their core, short-term installment products is similar to Afterpay: limited or no positive reporting, but potential for negative reporting of delinquencies.

General BNPL Reporting Trends (2025)

Most BNPL services, including Klarna, Affirm (for some products), PayPal Pay in 4, and Zip, follow a pattern similar to Afterpay for their standard "Pay in 4" or short-term installment plans:

No Positive Reporting: On-time payments are typically not reported to credit bureaus. This means these services are generally not used for building credit history.
Negative Reporting for Delinquency: If you miss payments, these services are likely to report the delinquency to credit bureaus, negatively impacting your credit score. Many also use collection agencies for severe defaults.
Soft Credit Checks on Sign-up: Most BNPL providers perform soft credit checks or non-credit-based assessments for initial approval, which do not affect your credit score.

Key Differences and Nuances

While the core principles are similar, there are important distinctions:

Affirm: A More Complex Case

Affirm is a notable exception and often a point of confusion. Depending on the specific Affirm product, it can report to credit bureaus.

Longer-Term Loans: Affirm offers longer-term installment loans (e.g., 6, 12, 24 months) that are often reported to credit bureaus as installment loans. Making on-time payments on these products can help build your credit history.
"Pay in 4" vs. Installment Loans: Affirm's shorter-term "Pay in 4" options might have different reporting policies, sometimes not reporting positive activity. It's essential to check the terms for the specific Affirm product you are considering.
Hard Inquiries: Applying for some Affirm loans may involve a hard credit check, which can temporarily impact your score.

PayPal Pay in 4

Similar to Afterpay, PayPal's "Pay in 4" service generally does not report on-time payments to credit bureaus. It's primarily for managing cash flow without direct credit score impact, unless payments are missed.

Klarna

Klarna's reporting policies can vary by region and product. In some markets, their longer-term financing options may be reported. For their standard "Pay in 4" or similar short-term plans, the pattern of no positive reporting but potential negative reporting for delinquency is common.

Zip (formerly Quadpay)

Zip generally follows the Afterpay model, focusing on short-term installments that do not build credit through positive reporting but can harm it through missed payments.

Comparison Table: BNPL Services and Credit Scores (2025)

Here's a simplified comparison:

Service	Typical "Pay in 4" Reporting	Potential for Credit Building	Credit Check on Sign-up	Impact of Late Payments
Afterpay	No positive reporting	No	Soft/None	Negative (can be reported)
Affirm	Varies (longer terms may report)	Yes (for reported installment loans)	Soft/Hard (depending on product)	Negative (can be reported)
PayPal Pay in 4	No positive reporting	No	Soft/None	Negative (can be reported)
Klarna	Generally no positive reporting (for short terms)	No (for short terms)	Soft/None	Negative (can be reported)
Zip	No positive reporting	No	Soft/None	Negative (can be reported)

Note: Policies can change. Always check the specific terms and conditions of the BNPL service you are using.

Choosing the Right BNPL Service

If your primary goal is to build credit, none of these standard "Pay in 4" BNPL services are ideal. You should focus on credit cards or installment loans that are known to report to credit bureaus.

If your goal is simply to manage cash flow for a purchase, then Afterpay and similar services are suitable, provided you commit to making all payments on time. In this context, the choice between them often comes down to merchant acceptance, user interface, and any specific promotional offers. Always prioritize understanding the payment terms and your ability to meet them.

Navigating Your Credit Report

Understanding how services like Afterpay interact with your credit score begins with understanding your credit report itself. Your credit report is a detailed record of your borrowing and repayment history, compiled by credit bureaus. It's the foundation upon which your credit score is calculated.

What is a Credit Report?

A credit report contains several key sections:

Personal Information: Your name, address, Social Security number, and employment history.
Credit Accounts: A list of all your credit cards, loans, mortgages, and other credit lines. For each account, it shows the lender, account number (often partially masked), date opened, credit limit or loan amount, current balance, and payment history.
Public Records: Information from public sources, such as bankruptcies, liens, or judgments.
Credit Inquiries: A record of who has accessed your credit report and when. This is divided into "hard" and "soft" inquiries.

The Major Credit Bureaus

In the United States, the three main credit bureaus are:

Equifax
Experian
TransUnion

Lenders and other businesses report your credit activity to these bureaus, and they compile the information into your credit report.

How Afterpay Fits In (or Doesn't)

As discussed, Afterpay's standard "Pay in 4" service typically does not report your positive payment history to these bureaus. This means it won't appear as a tradeline on your report that contributes to building positive credit.

However, if you miss payments and Afterpay reports this delinquency, or if your account is sent to collections, this information will appear on your credit report. This is where Afterpay can have a significant negative impact.

Checking Your Credit Report

It's essential to review your credit reports regularly to ensure accuracy and to monitor your financial health.

AnnualCreditReport.com: By law, you are entitled to one free credit report from each of the three major bureaus every 12 months. You can request these reports through the official website: AnnualCreditReport.com.
Review for Errors: Carefully check each report for any inaccuracies. This includes incorrect personal information, accounts you don't recognize, or incorrect payment statuses.
Disputing Errors: If you find errors, you have the right to dispute them with the credit bureau. The bureau is required to investigate your claim.

Credit Scores

Your credit score is a three-digit number, typically ranging from 300 to 850, that summarizes the information in your credit report. Lenders use credit scores to assess your credit risk.

FICO Score and VantageScore: These are the two most common scoring models. While they use similar factors, their exact calculations differ.
Factors Affecting Your Score:
- Payment History (most important)
- Amounts Owed (credit utilization)
- Length of Credit History
- Credit Mix
- New Credit

Understanding your credit report is the first step to understanding your credit score. By knowing what information is being reported (or not reported, in the case of Afterpay's positive activity), you can make informed decisions about how to manage your finances and protect your creditworthiness.

Conclusion: Your Credit Score and Afterpay

The question "Does Afterpay affect credit score?" receives a nuanced answer: primarily, it does not positively impact it, but it absolutely can negatively impact it. For the standard "Pay in 4" service, your on-time payments are generally not reported to credit bureaus, meaning Afterpay won't help you build credit history. However, this convenience comes with a crucial caveat: missed or late payments can and likely will be reported, leading to significant damage to your credit score.

Therefore, the most effective strategy for using Afterpay is with extreme diligence. Treat it as a payment tool, not a credit-building instrument. Always budget for your installments, set reminders, and ensure you have sufficient funds available. If your goal is to improve your creditworthiness, focus on traditional credit products like credit cards and installment loans that are designed to be reported to credit bureaus. By understanding these dynamics and practicing responsible financial habits, you can leverage Afterpay's benefits without jeopardizing your credit future.