Does Perpay Build Credit?

Perpay is a buy now, pay later (BNPL) platform allowing consumers to purchase goods from an online marketplace and pay over time. It aims to provide accessible purchasing options, often linking payments directly to payroll. A key question for potential users is whether Perpay can contribute to building a positive credit history.

Perpay’s Approach to Credit Building

Perpay’s standard marketplace service, where users purchase items and pay in installments, does not inherently build credit like traditional loans or credit cards. Typical buy now, pay later arrangements do not report payment activity to major consumer credit bureaus. Therefore, on-time payments for marketplace orders do not appear on credit reports. However, Perpay offers an opt-in feature, Perpay+, specifically designed for credit building. This program allows Perpay to report payment data to nationwide credit reporting agencies, transforming routine installment payments into opportunities for credit history development.

The Perpay+ Credit Builder Account

The Perpay+ Credit Builder Account reports a user’s consistent payment activity on their Perpay Marketplace orders to major credit bureaus. To activate this feature, users opt-in through their account dashboard or during their first purchase. Eligibility for reporting begins after four months of on-time payments, with total payments exceeding $200.

Once these conditions are met, Perpay reports information about the user’s marketplace account monthly to Experian, Equifax, and TransUnion. The reported data includes on-time payments, which demonstrate financial responsibility. Perpay can report up to 24 months of payment history, providing a substantial record of consistent financial behavior. This installment payment history can positively influence credit score elements like payment history and credit mix.

While Perpay generally advertises no interest or fees on marketplace purchases, the Perpay+ credit-building feature carries a nominal cost. Users opting into Perpay+ typically incur a small monthly fee, such as $2, when actively carrying a balance. This fee is specifically for the credit reporting service and is not applied if there is no outstanding balance. The direct deposit payment structure, where payments are automatically withdrawn from a user’s paycheck, further supports consistent, on-time payments.

Important Considerations for Building Credit with Perpay

Building credit, even with programs like Perpay+, requires consistent financial discipline. Payment history is the most significant factor influencing a credit score, making on-time payments to the Perpay+ Credit Builder Account essential. Missing or late payments can negate positive impact and potentially harm a credit profile, just as with any other credit obligation.

Credit building is a process that takes time, and immediate dramatic changes to a credit score are uncommon. While some users may observe initial improvements in as little as four months, a sustained positive impact requires longer diligent payment behavior.

Only activity related to the Perpay+ Credit Builder Account, specifically Marketplace order payments, is reported to credit bureaus. General shopping activity on the Perpay platform not meeting Perpay+ criteria will not contribute to credit building. The type of account reported, often an installment loan, can also diversify a credit mix, which is another factor considered in credit scoring models.