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"But there can be a downside to BNPL- that flashy purchase may have a negative impact on your credit score with long term consequences. Keep in mind that retailers see BNPL as a tool to encourage you to spend more in their stores and are paying fees to the BNPL providers to be able to offer the service. BNPL is an alternative to other payment products such as credit cards, personal loans and payday loans. In most cases BNPL service providers aren’t required to run credit checks like a traditional lender, which means that it’s easier to access and if you’re already finding it difficult managing your money or spending money that you don’t have, then you could easily end up in a lot of debt. Will it impact my credit score? Your credit score is based on personal and financial information about you that's kept in your credit report. When you apply for a BNPL service, the provider may make a credit enquiry which can affect your credit score. How you use your BNPL service will impact your credit score. You can check your credit score and see if any BNPL accounts have been recorded and if this has impacted your score. Even if you don’t use a BNPL service regularly, if it appears on your credit history, it is considered a small loan by a lender and could influence the outcome of a future lending application."
<https://bankofus.com.au/blog/2023/buy-now-pay-later-whats-the-deal>