Buy Now, Pay Later (BNPL) providers are becoming an extremely popular way for consumers to spread their point-of-sale spending for flexible and instant purchases. BNPL options like LatitudePay let consumers pay 10% of their original items purchase price and break the rest into equal instalments, making bigger-ticket purchases easier to budget for over time.

Of course, with any similar old-school lay-by or layaway plan there is always some hesitancy regarding how these payment providers operate and how they might impact an individual's financial future.

Does LatitudePay affect credit score?

On applying for a LatitudePay account you will experience a ‘soft’ credit check, meaning it shouldn't initially affect your credit score. If you are successful in your application, there may be varying eligibility criteria from specific retailers with additional credit checks when purchasing an item.

However, a consumer's credit score may be affected if they are unable to keep up with their repayments and their BNPL provider reports late payments. These will usually default to reports to a credit bureau which is a similar process so a bank reporting a missing loan repayment.

With Latitude pay, consumers are given the opportunity to pay back their payments over a 10 week period, usually making repayments small in value and easy to manage. In comparison to a credit card's monthly payment cycle, consumers will have the constant ability to check in on their repayments and stay on top of their spending weekly rather than worrying about their repayment schedule at the end of the month.

What Happened to LatitudePay? Closure, Migration and What It Means for Your Credit File

LatitudePay is no longer open to new customers in Australia. Latitude Financial Services announced the wind-down of its LatitudePay and LatitudePay+ buy now, pay later products, closing the platform to new sign-ups and new purchases before shutting the service down entirely once existing instalment plans had run their course. If you are researching how LatitudePay works because you are considering it as a payment option at checkout, you will no longer find it offered by Australian retailers. The information below explains what the closure means for anyone who used the service, and what still appears on an Australian credit file afterwards.

Is LatitudePay still available in Australia?

No. New applications closed during the wind-down and the product has been retired in both Australia and New Zealand. Retailers that once listed LatitudePay at checkout - including large electronics and homewares chains - have removed it as a payment option. Because product status can change, it is worth confirming the current position directly with Latitude Financial Services before relying on any date-specific detail.

What happened to existing LatitudePay accounts and outstanding instalment plans

Customers who had active instalment plans when the closure was announced were required to continue making their scheduled weekly repayments until the plan was paid off. Balances were not forgiven, written off or automatically transferred to another lender. Latitude continued to service those plans, take direct debits from the nominated card and send repayment reminders until the final instalment cleared. Once the last payment was made, the account closed. If you believe you had an outstanding balance when the platform shut down and you have not heard anything, contact Latitude directly rather than assuming the debt has disappeared - an unpaid balance can still be pursued and can still be reported.

Does a closed LatitudePay account still appear on my credit report?

Yes, it can. Closing an account does not erase its history. Under Australia's comprehensive credit reporting system, any account information that was reported to a credit bureau while the account was live stays on your file for a set period after closure. That includes the date the account was opened, the date it was closed, the credit limit, and - where the provider reported it - up to 24 months of repayment history. A closed account with a clean repayment record is not a negative mark; it simply forms part of your credit history.

How long do closed BNPL accounts and repayment history stay on an Australian credit file

Consumer credit account information generally remains on your file for two years after the account is closed. Repayment history information is held for 24 months. Credit enquiries stay for five years from the date of the enquiry. A default listing - a payment of $150 or more that is 60 or more days overdue, where the provider has sent you a written notice demanding payment and then a second written notice at least 30 days later warning that a default may be listed - stays for five years, and remains visible even after you have paid it, though it will then be marked as paid. A serious credit infringement can stay for seven years.

What to do if LatitudePay still shows as open or with an incorrect balance on your report

Errors on a credit report can be reversed, and you do not have to pay a credit repair company to do it. Start by checking your credit score and report to see exactly what is listed. If a LatitudePay entry shows as open when you have paid it off, shows the wrong balance, or shows a missed payment you did not miss, raise a correction request with Latitude Financial Services first, then with the credit bureau that holds the listing - Experian or Equifax. Bureaus must investigate free of charge and generally respond within 30 days. Keep receipts, statements and confirmation emails, as documentary evidence resolves disputes far faster than a phone call alone.

Which Latitude products are still open to new customers

Latitude Financial Services continues to operate outside of BNPL. The Latitude GO Mastercard remains available as an everyday credit card with interest-free promotional periods at partner retailers, as does the Latitude 28° Global Platinum Mastercard, which is aimed at overseas spending and international transaction fee savings. Latitude also offers personal loans and car loans. Each of these is a regulated credit product, which means applying involves a full credit check that is recorded as an enquiry on your credit file - a meaningful difference from the soft check LatitudePay once used.

What is LatitudePay?

LatitudePay was an online and in-store Buy Now, Pay Later option offering interest-free instalments, though late payment fees applied if a scheduled repayment was missed, so it was not free of cost in every case. With LatitudePay’s flexible, spreadable payment method, consumers can spread their large sum spending across multiple payments from brands all around Australia.

LatitudePay is backed by Latitude Financial Services who currently provide finance to over 2.6 million Australian and New Zealand consumers today. With Latitude supporting LatitudePay, consumers now have a solution that spreads the cost of purchases over 10 weekly payments, only requiring consumers to pay the first 10% of the price upfront.

How does LatitudePay work?

While it operated, LatitudePay offered both in-store and online options, like many other Buy Now Pay Later providers, with a few differences between the two. The description below is historical - the product closed to new purchases in April 2023. In both instances, a customer can spend up to $1,000 with one of LatitudePay’s selected retailers while only paying 10% of the full price up front. The remaining cost is spread over 9 subsequent weeks, making shopping more manageable and achievable for consumers. While no hidden fees apply, there are late fees of $10 for every payment missed.

To begin using LatitudePay, you will need to sign up for an account which is simple and free! Once the account is approved, shoppers will be able to select LatitudePay at checkout (both in-store and online) and receive their goods instantly, and repay over 10 weekly installments.

There is a $10 late fee for a missed payment, but you will receive a reminder to stay on track.

There are also Latitude finance credit card offered by Latitude Financial Services that specifically support Buy Now Pay Later solutions. A customer can pay using a Latitude credit card at any of the LatitudePay retailers.

Here’s how to use Latitude Pay online and in-store.

Using LatitudePay online

To make a purchase online with LatitudePay a customer simply needs to add the item to their cart and choose LatitudePay during checkout as the payment option. There’s no extra charge to pick LatitudePay as the payment option. If this is the first time a customer is using LatitudePay, they will be directed to an online application page and asked to enter details of their ID (such as a driver's license or passport) and details of debit or credit card for processing the repayments.

Using LatitudePay in-store

When making a purchase in-store consumers must have a phone linked to their LatitudePay account, access to the internet and a credit/debit card with funds for the first 10% instalment.

To use LatitudePay in-stores, at checkout a customer will need to let the retailer know that they want to pay with LatitudePay. After this, the merchant in-store will create a payment plan for the customer, entering their name, mobile phone number and details of the purchase. A confirmation of the payment plan will be sent via text message which asks for LatitudePay login details. To finish, a customer must click confirm and select a payment method after which they will receive an email confirmation that the transaction has been successful.

Where can I use LatitudePay?

BNPL providers are becoming an increasingly popular payment option for retailers across Australia. At its peak LatitudePay was accepted by around 1,100 retailers across Australia, but the service has since ceased operating and is no longer offered at any checkout. A full list of available options can be found here.

Retailers that accepted LatitudePay before the service closed included:

• Cotton On

• JB-HI-FI

• The Good Guys

• Amart Furniture

• Catch

• Harvey Norman

• Kogan

• Typo

• Bing Lee

• Goldmark

• Prouds

Does LatitudePay do a credit check?

LatitudePay no longer accepts applications. When it did, it assessed whether you had a healthy credit score by doing a ‘soft’ credit check before approving an account.

Conducting a credit check involves enquiring with a credit bureau, such as Experian or Equifax, to determine if you have an appropriate credit history. These aggregators of credit information give BNPL providers a view into how often someone has borrowed in the past and the history of their repayments. This information also comes with a ‘credit score’ which helps in determining the success of an application.

More information on each of LatitudePay’s credit bureau partners can be found on their websites where potential lenders can check their credit scores.

• Experian Bureau

• Equifax Bureau

Can using LatitudePay improve your credit score?

LatitudePay is a Buy Now Pay Later provider that does a credit check initially to ensure your eligibility for loan repayments. Eligibility was based on your overall credit history and wider economic conditions. Keeping up with repayments on any credit may mean lenders come to see you as lower risk over time, but no provider can guarantee a score outcome.

Generally, a score in a band such as Looking bright (700-799) may mean lenders see you as lower risk on a home loan application, though approval always depends on the lender's own checks, including affordability. Having good credit utilisation, meaning a person is able to manage their credit without using it, can improve a person's credit score if used strategically.

If you would like to learn about ways to improve your credit score, Latitude has made some handy tips for you that you can find here.

How BNPL Accounts Appear on Your Australian Credit Report

Buy now, pay later accounts show up on an Australian credit report inconsistently, and understanding why matters more than any single provider's policy. BNPL historically sat outside the National Consumer Credit Protection Act 2009, so providers were not obliged to report account data to credit bureaus the way banks and card issuers are. That has now changed: low cost credit contracts, including BNPL, are regulated credit under the Act and providers must hold an Australian credit licence, so reporting practices are still catching up and remain uneven between providers. Some report everything, some report only defaults, and some report nothing at all unless you fall badly behind. That variability is exactly why a BNPL plan can quietly help one borrower and hurt another.

Comprehensive Credit Reporting: what BNPL providers can and cannot report

Under Comprehensive Credit Reporting, licensed credit providers may report positive as well as negative information: the account type, the date it was opened and closed, the credit limit, and a rolling 24-month record of whether each payment was made on time. Only credit licensees can supply repayment history information. Where a BNPL provider does not hold a credit licence, it cannot contribute repayment history at all - but it can still list a default through a bureau, and it can still make credit enquiries. This is the source of most confusion: a provider that never reports your good months can still report your worst one.

Enquiries, open accounts and credit limits - which of these a BNPL plan creates

A BNPL sign-up may generate a credit enquiry, an open account entry, or neither. Where a provider runs a full assessment, an enquiry is recorded and stays on your file for five years. Where an account entry is created, it typically carries a credit limit - and lenders read that limit as available credit, whether or not you are using it. A dormant BNPL account with a $2,000 limit is treated by many assessors as $2,000 you could draw on tomorrow.

Repayment history information versus late fees: when a missed instalment actually lands on your file

A $10 late fee is a contractual penalty, not a credit report entry. The two are entirely separate. If your provider reports repayment history, a payment made more than 14 days after its due date can be recorded as missed for that month. If your provider does not report repayment history, a single late instalment may never appear on your file at all - you simply pay the fee. Neither scenario is a reason to be relaxed about missed payments, because the escalation path is the same for everyone.

The 60-day mark and when a missed BNPL payment becomes a default

A default listing requires an overdue amount of at least $150, a payment that is 60 or more days overdue, and two written notices from the provider: one demanding payment, and a second sent at least 30 days later warning that the default may be disclosed to a credit bureau, with at least 14 days allowed after that before the listing can be made. Once those conditions are met, a default can be listed regardless of whether the provider reports ordinary repayment history - and it stays on your file for five years, even after you pay it. This is the point at which a small instalment purchase turns into a genuine obstacle to a home loan, and it is the single most damaging outcome BNPL can produce.

Why lenders assess BNPL commitments in home loan serviceability even when your score is unaffected

Even where a BNPL account leaves no mark on your credit file, mortgage lenders will find it. Serviceability assessments examine three to six months of bank statements, and regular BNPL direct debits are visible there in plain sight. Assessors treat them as committed monthly expenditure, which reduces your borrowing capacity. Frequent BNPL use can also be read qualitatively as a sign that everyday spending is being smoothed with credit - a judgement that no credit score can insulate you from.

How multiple concurrent BNPL accounts read to a lender

Holding several BNPL accounts at once compounds the problem. Each may carry its own limit, its own direct debit and its own opportunity to miss a payment on a week when money is tight. Where accounts do generate enquiries, several sign-ups in a short period can look like credit-seeking behaviour. Consolidating down to one provider you actually use, and closing accounts you have finished with, is a straightforward way to keep your file clean.

Soft versus hard credit checks explained

A soft check, sometimes called an access seeker or identity verification enquiry, lets a provider view your credit information without leaving a visible enquiry for other lenders to see. It does not affect your score. A hard enquiry is recorded, is visible to future lenders for five years, and can move your score slightly - particularly if several are clustered together. The common misconception is that a soft check means the account has no credit consequences whatsoever. It only means the application itself was invisible; how you handle the repayments afterwards is a separate matter entirely.

Can I pay LatitudePay with a credit card?

While the service operated, LatitudePay repayments could be made using credit cards. You can either use a Visa or MasterCard to make these payments. However, this excludes international cards.

To make payments for LatitudePay with credit cards, you will also need to activate the card. You can do this through the LatitudePay app, place an online request, or speak to someone on the LatitudePay website live chat.

LatitudePay VS Latitude GO Mastercard

If you have a choice between LatitudePay vs Latitude Go MasterCard, what should you choose?

Latitude Financial Services offers Latitude GO Mastercard, an everyday credit card with flexible interest-free payment options. When you apply for the card, Latitude Financial conducts a credit check to determine your eligibility. Approval rests on Latitude's own checks, which weigh your credit score alongside income, existing borrowing and whether the repayments are affordable.

Once you get approved, you can get upto six months zero interest on purchases of $250 or more. You can also enjoy zero percent interest for 55 days on everyday purchases and 19.95 % p.a interest after that. The card can be used to purchase a variety of products at any of LatitudePay retailers online or in-store. A list of what stores use LatitudePay is provided when you sign up for the credit card.

While there is no establishment fee or annual fee payable for the card, you need to pay a monthly account servicing fee when the outstanding balance on the card is more than $10. Unless you make repayments on time, you need to pay an interest of 25.9% p.a. on cash advances and expired long-term interest free payment. You can manage all the payments made through Latitude GO MasterCard using the Latitude App.

Apart from Latitude credit cards, there are also various personal loans offered that can help you take care of your financial needs such as Latitude home loans for carrying out home improvements or purchasing household furnishings.

A card like the Latitude GO Mastercard is one option that supports a Buy Now Pay Later plan, each with its own eligibility criteria, fees, rates and repayment terms. LatitudePay itself is no longer available, as the product has been retired, so anyone after interest-free instalments would need to compare the Latitude GO Mastercard or another provider on their current terms and consider what they can afford. Some plans allow repayment over weekly instalments.

Is LatitudePay the same as AfterPay?

Like LatitudePay, AfterPay is also a Buy Now Pay Later service available in Australia. Both AfterPay and LatitudePay are interest-free.

The key difference between the two lies in their payment plans. When using AfterPay, a customer can split their payments into four interest-free installments, payable fortnightly.

LatitudePay, by contrast, split the payment into ten interest-free payments, payable weekly - though this comparison is now historical, as LatitudePay has closed. LatitudePay supports smaller and more frequent payments that can work better for those on a budget as only a small amount of money is debited from their account every week.

The other difference is the application process. AfterPay does not run any credit checks to approve applicants. If a customer is over 18 years and has a working credit or debit card, they are eligible to set up an AfterPay account.

However, for LatitudePay, credit scores are important. Once the application is received, a credit check is run. Only those applicants who are over 18, have a functional credit or debit card, and meet the required LatitudePay credit score are approved. An acceptable LatitudePay credit score is decided by LatitudePay at its discretion.

Does Latitude have a monthly fee?

There is no monthly fee charged.

LatitudePay's fee structure, while the product operated, was simple: if a customer missed a scheduled payment and the original purchase was less than $50, a $10 fee applied. If the purchase price was over $50, a fee of up to $50 could be charged. These fees are historical, as the service has closed.

LatitudePay alternatives

LatitudePay gave customers the flexibility of purchasing goods over a 10 week period with a maximum of $1,000 at their disposal, but with the product now closed, Australian shoppers need to look at the alternatives below. With LatitudePay, there are minimal late payments of $10 and no additional fees, however, being locked into a 10 week instalment can be difficult. Researching possible alternatives, as the BNPL market is burgeoning with new platforms, is a viable option when looking for loan providers.

There are a few notable LatitudePay BNPL alternatives below, though this comparison does not cover every feature that may be relevant to you:

LatitudePay and Your Credit Score: Frequently Asked Questions

Will a missed LatitudePay payment stop me getting a home loan?

A single missed instalment that you caught up quickly is unlikely to block a home loan on its own. A default listing is a different matter - it stays on your file for five years and most mainstream lenders will question it. Lenders also review your bank statements, so a pattern of dishonoured BNPL direct debits can count against you even without a listing.

Can I get a LatitudePay or BNPL entry removed from my credit report if it is wrong?

Yes. Errors on a credit report can be reversed, and correcting them is free. Raise the issue with the provider first, then with Experian or Equifax if it is not resolved. Bureaus must investigate and usually respond within 30 days. Supply statements or payment confirmations as evidence. Accurate negative listings cannot be removed early, whatever a credit repair firm claims.

How long does it take to recover a credit score after a BNPL default?

The listing itself remains for five years, but its weight fades over time. Any improvement, and how long it takes, varies by credit file, reporting practices and each lender's scoring model, as recent behaviour generally counts for more than older behaviour. Paying the default marks it as paid, which lenders view considerably more favourably than an outstanding one.

Does closing a BNPL account improve my credit score?

Sometimes. Closing an unused account removes an available credit limit that lenders would otherwise count against your borrowing capacity, which helps at application time. It will not remove the account's history, which stays on file for two years after closure. Never close an account with an outstanding balance still owing.

Do BNPL accounts count towards my credit utilisation in Australia?

Where the provider reports an account with a credit limit, yes - that limit forms part of the credit available to you, and the balance forms part of what you are using. Where nothing is reported, the account will not affect utilisation, but the direct debits will still appear on your bank statements and be treated as committed expenditure by lenders.

Can you really raise your credit score in 30 days?

Modest gains are possible in 30 days. Paying down card balances before the statement date, correcting reporting errors, and avoiding new applications can all register within a single reporting cycle. Larger jumps - 500 to 700, or a 700 score from a low base - take months of consistent repayment history, not weeks. Be sceptical of anyone promising otherwise.

What is the single biggest thing that damages an Australian credit score?

Defaults. A payment of $150 or more left 60 days overdue and formally notified becomes a listing that sits on your file for five years and outweighs almost anything else. Beyond that, repeated missed payments and a cluster of credit applications in a short window do the most damage.

Does checking my own credit score with ClearScore affect it?

No. Checking your credit score yourself is a soft enquiry - it is not visible to lenders and has no effect on your score. You can check as often as you like. Only applications for credit create the hard enquiries that other lenders can see.

BNPL Providers in Australia Compared: Credit Checks, Fees and Credit Reporting

With LatitudePay retired, Australian shoppers looking for an instalment option are choosing between a smaller field of providers whose credit checking, fees and reporting practices differ substantially. The table below sets out how the main options compare. Terms change frequently, so confirm current fees and limits with each provider before applying.

How to read this table: 'no credit check' does not mean 'no credit consequences'

The absence of a credit check at sign-up only tells you that applying will not put an enquiry on your file. It says nothing about what happens if you fall behind. Every provider in the table above can pursue an unpaid balance, and most reserve the right to list a default once a payment is 60 or more days overdue. A provider that never reports your good months can still report your worst one.

Which of these providers report repayment history to a bureau

Only credit licensees can supply the month-by-month repayment history that lenders find most informative. That effectively means the regulated products - Zip Money, Humm's longer plans and the Latitude GO Mastercard - build a visible track record, positive or negative. The pure instalment products generally do not, which means paying them perfectly will not lift your score, but missing them badly can still damage it.

Choosing an alternative if you were mid-plan with LatitudePay

If you liked LatitudePay's small weekly instalments, the closest substitutes are the fortnightly four-instalment products, which keep individual payments low and carry no monthly fee. If you were using it for larger purchases near the $1,000 ceiling, a longer interest-free plan may suit better - but check whether it is a regulated credit product, because those involve a hard enquiry and full reporting. Whichever you choose, only take on credit you can afford to manage and repay: open one account rather than several, and set the direct debit to a day shortly after payday.