According to LendingTree’s online survey on February 5, 2024, 31% of U.S. consumers have considered using BNPL this month.
Zip is accepted by over 80,000 merchants and it currently claims the top one spot in PYMNTS’ BNPL Provider Rankings. With its widespread availability and current popularity among American consumers, Zip will most likely process a huge chunk of these February 2024 BNPL payments.
If you’re among these Zip users, you’re probably wondering if these payments go toward building your credit history.
Can I Build Credit with Zip?
Yes, it’s possible to build credit with your Zip purchases but only with the use of third-party apps like Cushion. But without the help of Cushion, your installment payments with Zip will go unreported unless you make late payments.
This is because Zip currently doesn’t report to the credit bureaus. However, accounts with payments that are past due for an extended period of time will be sent to collections. When this happens, your delinquency will be reported to the credit bureaus.
Can I Reschedule Payments with Zip?
Yes, Zip allows you to reschedule your due dates. Better yet, the first time you move a due date every month is free! After that, you’ll need to pay a $2 fee each time you reschedule a payment.
Moving a due date in Zip isn’t instant though. There’s a 24 delay before the changes take effect. And while there’s a 7-day grace period before you get hit with a late penalty, it’s important to keep in mind that you’ll need to move a due date at least a day before the grace period ends.
Keep in mind that the succeeding installment dates (if there are any) will also be adjusted if you do decide to use this feature.
Does Zip Charge Interest for their Pay-In-4 Loans?
No, Zip doesn’t charge interest for its pay-in-4 loans. It does, however, charge installment fees for its pay-in-4 loans.
| Installment Fee | Maximum Purchase Cost |
| $4* | $99.99 |
| $5* | $199.99 |
| $6* | $200 |
*The installment fee listed above is the total amount you’ll need to pay for each pay-in-4 loan.
Does Zip Offer a Pay Monthly Option?
No, Zip currently doesn’t offer a pay monthly option in the US.
What are the Requirements for a Zip Account?
In order to get approved for a Zip loan, you’ll need to meet the following requirements:
- Be at least 18 years old
- Live in the US
- Have a valid and verifiable mobile number
- Use a US credit or debit card to make a purchase
- Have a valid US mailing address (not an APO, FPO, AE PO, or PO Box)
Related articles:
- How Does Afterpay Affect Your Credit Score?
- How Does Sezzle Affect Your Credit Score?
- How Does Klarna Affect Your Credit Score?
Summary
At the time of writing, building a credit history with Zip can only be done through the help of apps like Cushion. Despite this, Zip can still negatively impact your credit score by sending your account to collections should you have payments that are past due for an extended period of time.
To avoid the negative impacts of late payments, be sure to take advantage of Zip’s payment rescheduling feature. You can reschedule 1 due date for free each month! After that, it will cost you $2 for each due date that you reschedule. And that’s on top of the installment fee that’s charged for Zip pay-in-4 loans.
