Avoid Using AfterPay If You Want A Home Loan

AfterPay users have been warned to avoid using the service if they are planning to make a home loan application, in another sign buy now, pay later schemes are on the radar of lenders.

“AfterPay creates questions, such as is this person living beyond their means” - Managing Director of Home Loan Experts, Otto Dargan.

Mr. Dargan also warned that AfterPay raises a “question mark when combined with other factors” for banks because it can give the impression that the customer does not have “large amounts of cash on standby and they are living paycheque to paycheque.”

A survey by the investment bank found that buy now, pay later users tend to have more types of debt and are more likely to have been declined for credit cards in the past. It is important that customers know that having a ‘buy now, pay later’ products is part of what you’re assessed on when applying for credit.

(Laura Chung & Colin Kruger - The Sydney Morning Herald 2019)