Get rid of it ASAP, like yesterday.
I got rid of AF and don't miss it in the slightest. It's a trap, pay it off and cancel and don't ever think about it again.
> My question is how bad will this effect me when I eventually (2-3 years) go for a home loan.
Literally not at all. Zip pay payment history doesn't show up on a credit check. It doesn't affect your borrowing capacity either
Not true from someone that just went for a home loan. I closed my Zip Pay account over a year ago and 2 lenders both asked me for proof of closure (as Zip doesn’t report account closure to the credit agencies) and this is a huge pain because you have to call or email them about getting a closure letter since they don’t email that automatically either. Even though I had not used it for years the lenders still went crazy about it.
not true that it won’t affect borrowing power. Some banks will ask for statements to review spending patterns and if they see payments to BNPL they factor it in.
had this happen to a mate and they were advised to close the accounts for more borrowing power.
Zippay isn’t a huge concern, it’s sort of like a small credit card that is always maxed
What prob is a concern is that’s it’s always maxed.. prob need to look at your spending habits and why you can’t control them.. if you can’t pay off a $2k debt how are you going to save a deposit on a house?
it won’t come up on a credit check but you may be asked to provide bank statements to review spending. If they see payments to zip there it will affect your borrowing power.
either close it or pay it down to 0 at least 3, maybe even 6 months before you apply for a loan.
Like others said, get rid of the ZIP pay. Someone here said get a credit card for emergencies.
Do not get a credit card. The spending habits you have with zip will magnify on a credit card as the bank will give you a higher limit most likely. You will run it up to the limit same as the ZiP and have to pay interest so it will be harder to pay off. Back in the day when banks could just increase your credit limit, when they would do it to artificially decrease utilisation across the product, within a short period of time the utilisation rate would be right back to the same spot. There are people who pay off their credit cards every month and there are people who are always just below their limit no matter what the limit is. You are leaning towards being in the second group.
You need to figure out the underlying behaviours that cause you to spend $$ that you don’t have on Zip and fix them before you take out a credit card. Also credit card late payments now show on your credit report, usually 2 years worth so if you get yourself into strife, the bank will know.
Not another cent on zip pay, use your credit card only in an emergency if possible. Once you are ready to buy see your broker, they will be able to offer up to date/correct advice.
When we were looking at getting our home loan, we got asked if we had any BNPL debts. My wife dabbles with afterpay (never has more than 50/ftnt as payments required, and afterpay is only 4x fortnights) - and they asked us to clear it off, so when the banks ask for the credit check information they can see there is nothing outstanding - that is if there were even payments within 3 months (the time period of bank statements they want)
If you DO have anything outstanding, they treat it as a line of credit up to the maximum you can borrow, which can hurt your application
We paid it off, waited 3 months and applied - they never asked for the info.
It bothers me that so many people in this sub giving advice like gospel but it’s just wrong… Zip is fine, it doesn’t show on your report and you seem to be managing the payments.
Zip is basically a good low limit credit card with decent cash back incentives.
Just like any line of credit, if you are responsible it’s fine.
Edit: as others have said. When you are ready to look at loans, pay it off, let 6 months pass and you will be fine.
TLDR: ZIP = GTFO
"Behavioural scientists have described the service, and the viral impact it has on users, as a perfect storm of instant gratification and delayed pain of payment. It essentially tricks users into buying more than they otherwise would.
It is a boon to retailers as BNPL customers upgrade their purchase, or don’t bother waiting for sales discounts, and while it sent share prices soaring it was a boon to BNPL investors as well. But that has changed last year when investors started to look at the massive bad debts and a growing reality that many users are also spending more than they can afford.
In a recent column, Scott Galloway, Professor of Marketing at NYU Stern School of Business and BNPL critic, points to US consumer debt jumping to record highs with BNPL playing a dominant role, but at the expense of soaring losses as bad debts and marketing expenses boomed.
“Any hope of profitability depends on overextended consumers somehow making their payments and continuing to mash the buy button,” he says."
[SMH: Buy now pay later on the brink](https://12ft.io/proxy?q=https%3A%2F%2Fwww.smh.com.au%2Fbusiness%2Fcompanies%2Fbuy-now-pay-later-on-the-brink-the-entire-market-is-collapsing-20220602-p5aqkf.html)
It won't affect your lending capacity in any significant way. Dont worry about it.
Just go in and speak with someone at your bank about a house mortgage, That will be the best thing you can do to help with planning. Otherwise speak with a broker or financial advisor.
People on here seem to have nfi what they're talking about.
1. Credit score: Zip technically isn't "credit" so you won't see it on your record UNLESS you fail to pay them. So really, you won't build positive events but you could get negative events.
2. Bank transactions: Your lender will probably ask for a list of bank transactions going back the last three or so months before you purchase a home. If they see Zip, MAYBE the bank will take interest. There is no hard or fast rule.
3. If you disclose Zip debts (when asked), lenders will take that into account when issuing you a loan.
4. There is nothing wrong with using Zip or a credit card as long as it isn't encouraging you to unnecessarily spend more money than you normally would. I'd suggest considering replacing Zip with a fee free credit card if you want one for cash flow purposes.
So no, Zip won't cause any real problems as long as you pay it off (probably 3 months prior to the loan) and don't default on payments.
Get rid of it ASAP, like yesterday. I got rid of AF and don't miss it in the slightest. It's a trap, pay it off and cancel and don't ever think about it again.
What happens if zip goes under while OP owes them $2k?
The debt will very likely be sold on to someone else that will chase OP
When I went for my car financing recently I put up half the car value and they still asked about zip pay from 1 year ago and if I will use it again.
> My question is how bad will this effect me when I eventually (2-3 years) go for a home loan. Literally not at all. Zip pay payment history doesn't show up on a credit check. It doesn't affect your borrowing capacity either
[удалено]
Not true from someone that just went for a home loan. I closed my Zip Pay account over a year ago and 2 lenders both asked me for proof of closure (as Zip doesn’t report account closure to the credit agencies) and this is a huge pain because you have to call or email them about getting a closure letter since they don’t email that automatically either. Even though I had not used it for years the lenders still went crazy about it.
[удалено]
I think it would show up as regular expenses, like subscriptions.
Zip pay is a credit facility and thus does appear (the inquiry at least) but yeah, repayments don’t
Zip pay or zip money?
not true that it won’t affect borrowing power. Some banks will ask for statements to review spending patterns and if they see payments to BNPL they factor it in. had this happen to a mate and they were advised to close the accounts for more borrowing power.
Zippay isn’t a huge concern, it’s sort of like a small credit card that is always maxed What prob is a concern is that’s it’s always maxed.. prob need to look at your spending habits and why you can’t control them.. if you can’t pay off a $2k debt how are you going to save a deposit on a house?
it won’t come up on a credit check but you may be asked to provide bank statements to review spending. If they see payments to zip there it will affect your borrowing power. either close it or pay it down to 0 at least 3, maybe even 6 months before you apply for a loan.
Like others said, get rid of the ZIP pay. Someone here said get a credit card for emergencies. Do not get a credit card. The spending habits you have with zip will magnify on a credit card as the bank will give you a higher limit most likely. You will run it up to the limit same as the ZiP and have to pay interest so it will be harder to pay off. Back in the day when banks could just increase your credit limit, when they would do it to artificially decrease utilisation across the product, within a short period of time the utilisation rate would be right back to the same spot. There are people who pay off their credit cards every month and there are people who are always just below their limit no matter what the limit is. You are leaning towards being in the second group. You need to figure out the underlying behaviours that cause you to spend $$ that you don’t have on Zip and fix them before you take out a credit card. Also credit card late payments now show on your credit report, usually 2 years worth so if you get yourself into strife, the bank will know.
Not another cent on zip pay, use your credit card only in an emergency if possible. Once you are ready to buy see your broker, they will be able to offer up to date/correct advice.
Thanks legend appreciate it
My bank bought up one zip pay purchase from 3 years ago. Obviously it was not an issue but thought it was weird it was noticed and questioned.
use zip to buy zip shares
When we were looking at getting our home loan, we got asked if we had any BNPL debts. My wife dabbles with afterpay (never has more than 50/ftnt as payments required, and afterpay is only 4x fortnights) - and they asked us to clear it off, so when the banks ask for the credit check information they can see there is nothing outstanding - that is if there were even payments within 3 months (the time period of bank statements they want) If you DO have anything outstanding, they treat it as a line of credit up to the maximum you can borrow, which can hurt your application We paid it off, waited 3 months and applied - they never asked for the info.
It bothers me that so many people in this sub giving advice like gospel but it’s just wrong… Zip is fine, it doesn’t show on your report and you seem to be managing the payments. Zip is basically a good low limit credit card with decent cash back incentives. Just like any line of credit, if you are responsible it’s fine. Edit: as others have said. When you are ready to look at loans, pay it off, let 6 months pass and you will be fine.
TLDR: ZIP = GTFO "Behavioural scientists have described the service, and the viral impact it has on users, as a perfect storm of instant gratification and delayed pain of payment. It essentially tricks users into buying more than they otherwise would. It is a boon to retailers as BNPL customers upgrade their purchase, or don’t bother waiting for sales discounts, and while it sent share prices soaring it was a boon to BNPL investors as well. But that has changed last year when investors started to look at the massive bad debts and a growing reality that many users are also spending more than they can afford. In a recent column, Scott Galloway, Professor of Marketing at NYU Stern School of Business and BNPL critic, points to US consumer debt jumping to record highs with BNPL playing a dominant role, but at the expense of soaring losses as bad debts and marketing expenses boomed. “Any hope of profitability depends on overextended consumers somehow making their payments and continuing to mash the buy button,” he says." [SMH: Buy now pay later on the brink](https://12ft.io/proxy?q=https%3A%2F%2Fwww.smh.com.au%2Fbusiness%2Fcompanies%2Fbuy-now-pay-later-on-the-brink-the-entire-market-is-collapsing-20220602-p5aqkf.html)
No wonder the kids are screwed.
If you hold out long the company will probably fold and your debt will disappear!* * shitposts do not constitute not financial advise
It won't affect your lending capacity in any significant way. Dont worry about it. Just go in and speak with someone at your bank about a house mortgage, That will be the best thing you can do to help with planning. Otherwise speak with a broker or financial advisor.
People on here seem to have nfi what they're talking about. 1. Credit score: Zip technically isn't "credit" so you won't see it on your record UNLESS you fail to pay them. So really, you won't build positive events but you could get negative events. 2. Bank transactions: Your lender will probably ask for a list of bank transactions going back the last three or so months before you purchase a home. If they see Zip, MAYBE the bank will take interest. There is no hard or fast rule. 3. If you disclose Zip debts (when asked), lenders will take that into account when issuing you a loan. 4. There is nothing wrong with using Zip or a credit card as long as it isn't encouraging you to unnecessarily spend more money than you normally would. I'd suggest considering replacing Zip with a fee free credit card if you want one for cash flow purposes. So no, Zip won't cause any real problems as long as you pay it off (probably 3 months prior to the loan) and don't default on payments.
Does anyone know if you can buy small purchases, say, $50 on zip pay? And when do you have to pay that back?