Does Humm affect your credit score?

Understanding how Humm's 2025 transformation impacts your credit rating in Australia

• Humm underwent a major transformation in June 2025, retiring its Buy Now Pay Later product and launching a new regulated loan service with full credit reporting

• The new Humm product conducts hard credit checks when you apply, which appear on your credit report and may temporarily affect your score

• Payment history with the new Humm service is reported to credit bureaus, meaning both on-time and missed payments can significantly impact your credit rating

• If you're an existing Humm Classic user, your legacy BNPL account has minimal credit impact unless it goes to collections

• You can monitor how credit products affect your credit by checking your free credit report with ClearScore

Humm can affect your credit score in Australia, but how it impacts you depends on which Humm product you're using. In June 2025, Humm underwent a significant transformation that fundamentally changed how the service works and reports to credit bureaus.

The new Humm service, launched on June 10, 2025, operates as a regulated loan product under Australia's National Consumer Credit Protection Act. This means Humm typically conducts hard credit checks when you apply, and the company reports your payment history to credit bureaus. If you're an existing humm Classic user (the legacy Buy Now Pay Later product that stopped accepting new purchases on June 9, 2025), your account works differently and has minimal credit impact unless payments are severely overdue.

Understanding which Humm product you have and how each one affects your credit can help you make informed decisions about managing your finances and protecting your credit health.

Australia's regulatory update in 2025 represents a significant shift in consumer credit protection for Buy Now Pay Later services. The Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024 came into effect on June 10, 2025, bringing BNPL services under the National Consumer Credit Protection Act.

These changes aim to prevent over-commitment and ensure BNPL users receive the same protections as other credit consumers. The regulations classify BNPL as "low-cost credit contracts," extending responsible lending obligations to providers who previously operated in a largely unregulated space.

Key regulatory changes

• BNPL classified as consumer credit – services like Humm are no longer exempt from credit legislation, bringing them in line with personal loans and credit cards

• Responsible lending assessments required – providers must verify your income, expenses, and existing debts before approving applications

• Comprehensive credit reporting – payment history and account information can now be reported to credit bureaus, influencing your creditworthiness for future applications

• Enhanced consumer protections – this includes clearer disclosure requirements, dispute resolution processes, hardship assistance provisions, and regulated fee caps

• Licensing requirements – providers must hold an Australian Credit Licence to operate

Understanding Humm's 2025 transformation

In June 2025, Humm made a significant change to its business model in response to new Australian regulations governing Buy Now Pay Later services. This transformation split Humm into two distinct products.

Humm Classic (legacy BNPL product):

• The original Buy Now Pay Later service

• Stopped accepting new purchases on June 9, 2025

• Existing customers can still manage and pay down current balances

• Accessed through the separate Humm Classic app and portal

• Limited credit score impact historically

New Humm (regulated loan product):

• Launched June 10, 2025

• Operates as a regulated credit product under the National Consumer Credit Protection Act

• Available only through participating merchant partners

• Full credit reporting to bureaus

• Replaces the traditional BNPL model

Your credit score reflects your credit history and your ability to manage financial commitments responsibly. Credit reporting agencies calculate your score based on several factors, including:\

• Your repayment history for loans and credit products *The amount you have borrowed and your current credit limits
• The frequency of your credit applications
• Evidence of missed or late repayments
• Any defaults, bankruptcies, or court judgments in your name

The new Humm service can potentially impact your credit history in several ways. When you apply for Humm, the company typically conducts a credit assessment to evaluate your ability to repay. This assessment includes a hard credit check that appears on your credit report and can temporarily affect your score.

Additionally, your payment behaviour with the new Humm service is reported to credit bureaus. Making your payments on time can help maintain a stable credit score, while missed payments or defaults may cause significant damage that remains visible on your credit file for years.

This comprehensive credit reporting represents a major change from the legacy Humm Classic product, which had minimal credit score impact during normal use.

Current reporting practices

Since June 10, 2025, the new Humm service operates under the same credit regulations as banks, credit card companies, and personal loan providers. This regulatory framework brings Humm under the National Consumer Credit Protection Act, fundamentally changing how the service interacts with your credit profile.

Under this framework, Humm functions as a credit provider and must comply with comprehensive credit reporting obligations. This means your Humm activity now forms part of your permanent credit history, visible to lenders when you apply for credit cards, personal loans, car finance, or home loans.

What Humm reports to credit bureaus

Under the new regulatory framework, the Humm service may report:

• Credit checks when you apply – hard credit inquiries appear on your credit report when Humm assesses your application, helping them meet responsible lending obligations
• Your payment history – both positive and negative payment behaviour can be recorded on your credit file, showing lenders how reliably you manage credit
• Late payments and defaults – missed payments may appear on your report, visible to future lenders for up to seven years
• Loan details – information about your Humm loan, including the amount and repayment terms, contributes to your overall credit profile
• Account status – whether your account is current, overdue, or closed affects your creditworthiness assessment

The extent and timing of reporting follow standards set by the Privacy (Credit Reporting) Code 2024, which governs how credit providers in Australia handle credit information. This ensures consistency across the industry and provides consumer protections around credit reporting practices.

How humm Classic reporting differed

For existing Humm Classic users, the reporting practices were significantly different:

• Applications involved soft credit checks that didn't appear on your credit file
• On-time payments were not reported to credit bureaus
• Only serious defaults (typically accounts sent to collection agencies) could be reported
• Credit activity remained largely invisible to other lenders

This limited reporting meant that Humm Classic had minimal impact on credit scores during normal use. However, the new Humm service operates under completely different principles, with comprehensive reporting similar to credit cards or personal loans.

Does Humm do credit checks?

Yes, the new Humm service typically conducts a hard credit check when you apply for financing. Understanding the difference between hard and soft credit checks can help you manage your credit score effectively.

Hard credit checks:

• Appear on your credit report and can be seen by other lenders
• May temporarily lower your credit score by a few points
• Remain visible on your credit report for up to five years
• Multiple hard checks within a short period can have a greater cumulative impact
• Used when making actual lending decisions

Soft credit checks:

• Don't appear on your credit report in a way that's visible to other lenders
• Don't affect your credit score
• Typically used for pre-qualification, account reviews, or when you check your own credit
• May be used for marketing purposes

This responsible lending assessment is required under the National Consumer Credit Protection Act. Humm must verify that you can afford the repayments before approving your application, similar to how banks assess personal loan applications.

One or two hard credit checks usually create minimal impact on your credit score, with the effect typically recovering within a few months.

However, applying for multiple credit products within a short timeframe can signal financial stress to lenders and may have a more significant impact on your score.

Best practices for new Humm users

Set up automatic payments – link your account to automatic payments to ensure you never miss a due date. The new Humm service allows you to schedule payments from your bank account or debit card, reducing the risk of late payment marks on your credit file.

Only borrow what you can afford – before using Humm, confirm you can comfortably make all scheduled payments from your regular income without hardship. Remember that Humm must now assess your ability to repay, but you're still responsible for honest budgeting.

Track your payment schedule – use Humm's app or portal to monitor upcoming payments and ensure sufficient funds are available in your linked account before each due date.

Limit applications – avoid applying for multiple credit products within a short period, as multiple hard credit checks can temporarily lower your score and may signal financial stress to lenders.

Understand the total cost – review establishment fees, monthly fees, interest charges (if applicable), and the total amount you'll repay over the loan term before committing.

Keep loan terms manageable – while Humm offers repayment terms up to 10 years, shorter terms typically mean less total cost and faster credit file clearance.

Best practices for Humm Classic users

Continue making payments on time – even though Humm Classic has limited credit reporting, defaults can still damage your credit score if accounts go to collections.

Pay down balances quickly – clearing your Humm Classic accounts reduces your overall debt obligations and may improve your chances of approval for other credit products.

Don't rely on minimal reporting – future lenders may ask about BNPL accounts during applications, even if they don't appear comprehensively on your credit file.

Transition planning – if you were relying on Humm Classic for purchases, consider whether the new Humm service, credit cards, or personal loans better suit your needs going forward.

What to do if you're struggling

If you're finding it difficult to meet your Humm commitments:

Contact Humm's hardship team immediately – they can work with you to create a manageable payment plan before your account defaults. Under the National Consumer Credit Protection Act, Humm must have hardship assistance provisions in place.

Review your budget comprehensively – identify areas where you can reduce spending to free up funds for essential credit payments.

Seek free financial counselling – organisations like the National Debt Helpline (1800 007 007) offer free, confidential advice to help you manage debt and credit commitments.

Prioritise your payments strategically – focus on commitments that have the biggest credit impact and essential expenses like housing and utilities.

Avoid taking on new credit – don't apply for additional credit products while you're already struggling with existing commitments.

Document everything – keep records of your communications with Humm, especially if you're seeking hardship assistance or disputing charges.

Monitoring your credit report

You can track how Humm and other credit products affect your credit score by regularly reviewing your credit report. In Australia, you're entitled to access your credit report for free.

What to look for in your credit report:

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• Hard credit inquiries – applications for new Humm loans will appear as credit inquiries, showing when you applied and which credit provider checked your file
• Account information – active Humm accounts may be listed with details about loan amounts, repayment terms, and current status
• Payment history – your Humm payment behaviour, including on-time payments and any late payments, can be recorded
• Defaults – serious payment failures appear as defaults and remain visible for up to seven years, significantly affecting your creditworthiness
• Credit score changes – monitor how your score trends over time in relation to your Humm activity and other credit behaviour

For Humm Classic users, you may see limited information on your credit report unless your account went to collections. The legacy product's soft credit checks and minimal reporting mean normal use typically didn't appear on credit files.

Using ClearScore to monitor your credit

With Humm now operating as a regulated loan product with full credit reporting, monitoring your credit score has never been more important. ClearScore gives you free access to your credit score and report, helping you track progress and spot opportunities to grow your financial wellbeing. With ClearScore, you can:

• Check your credit score regularly without affecting it
• See which credit applications appear on your file, including Humm inquiries
• Monitor changes to your credit score over time
• Receive alerts about significant changes to your credit report
• Access tips for improving your credit health
• Understand how different credit products impact your profile

Regular monitoring helps you understand how Humm and other financial decisions impact your credit profile. If you notice unexpected changes, such as inquiries you don't recognise or payment information that seems incorrect, you can take action quickly to investigate and, if necessary, dispute errors.

Understanding your credit report information

Credit inquiries from Humm:

• Hard inquiries typically lower your score by 5-10 points temporarily
• Multiple inquiries within a short period have a more significant impact
• Inquiries remain on your report for 5 years, but the impact diminishes over time
• Most scoring models focus on inquiries from the past 12 months

Payment history reporting:

• On-time payments demonstrate reliability to lenders
• Late payments can cause significant score drops (30+ days overdue is the most impactful)
• Payment history typically carries the most weight in credit score calculations
• Consistent positive behaviour gradually improves your score

Account status:

• Active accounts with good payment history can strengthen your profile
• Closed accounts in good standing remain on your report
• Accounts in default severely damage your credit score
• Collection accounts are particularly harmful to creditworthiness

Buy Now Pay Later can affect your credit score under Australia's new regulations. While responsible use may help maintain good credit standing, missed payments can cause significant damage. The key is understanding how each BNPL service operates and managing your payments carefully.

Your credit score can influence many financial opportunities, from loan approvals to rental applications. Keep track of your BNPL commitments and prioritise on-time payments.

See your credit score for free – forever. ClearScore gives you free access to your credit score and report, helping you track progress and spot opportunities to grow your financial wellbeing.

Does Humm affect credit score?

Yes, the new Humm service can affect your credit score. Applications typically trigger hard credit checks, and payment history is reported to credit bureaus under Australian credit regulations. The legacy Humm Classic product had minimal credit impact unless accounts defaulted.

Does Humm do credit checks?

Yes, the new Humm service typically conducts hard credit checks when you apply. These checks appear on your credit report and may temporarily affect your credit score. The legacy Humm Classic product used soft checks that didn't appear on credit files.

What happened to Humm Buy Now Pay Later?

Humm's original Buy Now Pay Later product was retired on June 9, 2025, and renamed "humm Classic." No new purchases can be made using Humm Classic accounts. Humm launched a new regulated loan product on June 10, 2025, in response to Australia's BNPL regulations.

Is Humm still Buy Now Pay Later?

No, Humm is no longer a Buy Now Pay Later service in the traditional sense. The new Humm product launched in June 2025 operates as a regulated loan product under the National Consumer Credit Protection Act, with comprehensive credit reporting and responsible lending requirements.

Can I still use Humm Classic?

If you have an existing humm Classic account, you can continue to manage and pay down your current purchases through the humm Classic app or portal. However, you cannot make new purchases using humm Classic. The product stopped accepting new purchases on June 9, 2025.

How does the new Humm affect your credit score compared to Humm Classic?

The new Humm service has significantly more credit impact than Humm Classic. It conducts hard credit checks that appear on your report, and comprehensively reports payment history to credit bureaus. Humm Classic used soft checks and only reported serious defaults, meaning normal use had minimal credit impact.

How long do Humm credit checks stay on your credit report?

Hard credit checks from new Humm applications typically remain visible on your credit report for up to five years. However, their impact on your credit score diminishes significantly after the first 12 months, with most scoring models focusing on recent inquiry activity.

What should I do if Humm has damaged my credit score?

Focus on making all future payments on time, avoid new credit applications for several months, keep your credit utilisation low on any existing accounts, and consider seeking advice from a financial counsellor. Payment history typically recovers over time with consistent positive behaviour.

Does Humm report to all credit bureaus in Australia?

Humm reports to major Australian credit bureaus as required under the National Consumer Credit Protection Act and the Privacy (Credit Reporting) Code 2025. The main credit bureaus in Australia are Equifax, Experian, and illion (formerly Dun & Bradstreet).

Can I use Humm to build credit if I have a limited credit history?

The new Humm service can help establish credit history through reported payment behaviour, similar to personal loans. However, you'll need to be approved first, which requires passing a responsible lending assessment. Consistent on-time payments can demonstrate creditworthiness to future lenders.

How does Humm compare to Afterpay or Zip for credit score impact?

Since June 2025, all major BNPL providers, including Afterpay and Zip, have been conducting credit checks and reporting payment history under new regulations. However, Humm's transformation into a loan product with higher amounts and longer terms means it may appear more like a personal loan on your credit file.

What are Humm's fees, and how do they affect affordability?

The new Humm service may charge establishment fees, monthly loan fees, and late payment fees ($20 for missed payments). Interest rates may also apply depending on the merchant and loan terms. These costs affect your total repayment amount and should be considered when assessing whether you can afford the commitment, as Humm must verify affordability under responsible lending obligations. Check Humm’s terms before using the service for the latest pricing.

Disclaimer

This article provides general information only and does not constitute financial advice. Individual circumstances vary, and you may wish to seek independent advice before making financial decisions. Information is accurate at the time of writing and may be subject to change. Humm's product offerings, fees, and terms may vary by merchant and are subject to approval and lending criteria.