Sezzle launched Sezzle Up in 2021, a product that allows its users to build credit with BNPL payments. In the beginning, Sezzle Up only reported to TransUnion, but it has since started reporting to all three credit bureaus.
However, using Sezzle on its own won’t help you build credit. So, how do you upgrade to Sezzle Up, and are there any caveats to upgrading?
How Can I Build Credit with Sezzle Up?
Sezzle Up is available to all US shoppers, and enrolling in Sezzle Up is done by:
- Paying off one order on time
- Linking your bank account
- Setting that bank account as the default for scheduled payments
- Entering your valid SSN and confirming your personal information.
You can find out if you’ve enrolled in Sezzle Up successfully by:
- Opening the Sezzle App
- Clicking on ‘Account’
- And click on ‘Sezzle Up.’
This will take you to a page that will display whether or not your transactions in a particular month have been reported to the credit bureaus.
Does Sezzle Up Perform a Credit Check?
A soft credit check may be performed at Sezzle’s discretion when you first sign up. Enrolling in Sezzle Up does not prompt additional credit checks. This means that upgrading to Sezzle Up shouldn’t affect your credit score negatively.
Will Late Sezzle Payments Affect My Credit Score?
Sezzle Up reports both on-time payments and delinquencies. This means that late payments will affect your credit score negatively.
To find out if there have been any reported late payments, go to the Sezzle Up section of your account. Then look for the months that display the phrase “Not Current.” These are the months in which failed or late payments have been reported to the credit bureaus.
Sezzle considers payments overdue by 30 days or more to be failed or late payments. This gives users a bit of leeway in terms of resolving any late payments before they’re reported to the credit bureaus. However, once you have a late or failed payment, it will be reported to the credit bureaus each month until it is resolved.
How Do I Unenroll from Sezzle Up?
Unfortunately, the only way to unenroll from Sezzle Up is to delete your Sezzle Account entirely. And you won’t be able to do this until you pay off all your outstanding orders. Worse yet, deleting your Sezzle account will cause your Sezzle Up line of credit to be closed, which can affect your credit negatively.
This means that you need to make sure that you truly want to enroll in Sezzle Up before doing so because there’s no easy way to undo it. There are other ways of reporting your BNPL payments to the credit bureaus, and it’s best to look at the options before locking in your decision.
Summary
US shoppers can enroll in Sezzle Up, which allows them to build credit with their BNPL payments. Sezzle Up reports both your on-time and late payments to TransUnion, Experian, and Equifax.
Users who want to cancel their Sezzle Up upgrade can only do so by deleting their Sezzle account entirely. So it’s best to look at other options like Cushion before committing to the Sezzle Up upgrade.
