🚨 Big Changes for Buy Now, Pay Later!
Today, new rules for BNPL new regulations Australia officially started. This means services like Afterpay, Klarna, and Zip Pay are now like regular credit products, such as credit cards. If you sign up from today, you might find your spending limit is lower than before.
⚖️ Why the New Laws?
These new BNPL new regulations Australia are here to protect millions of Australians. The Australian Securities and Investments Commission (ASIC) wants to make sure people don’t get into financial trouble with these services. Research shows many Aussies use BNPL, especially younger generations.
💳 What’s Different for New Users?
From June 10, BNPL services need a special credit licence. This means:
- They’ll ask more questions about your money. 🤔
- You’ll need a credit check before borrowing.
- Your first spending limit might be lower based on your credit score. For example, Afterpay used to give everyone $600, but now it could be less.
⏰ Missed a Payment? Here’s What Happens
Because BNPL new regulations Australia treat these services like other credit, missing a payment can now impact your credit score!
- Late payments might show up on your credit report. 📉
- This could make it harder to get bigger loans later, like for a house. So, paying on time is more important than ever!
🤔 Afterpay Eyes Supermarkets!
Afterpay wants to expand into major Australian supermarkets like Coles, Woolworths, and Aldi. Their co-founder believes the new BNPL new regulations Australia will give these big stores the confidence to accept Afterpay as payment. Afterpay is already used in some IGA and Drakes stores.
Card 6: 🛒 Concern for Grocery Debt
Experts are “very concerned” about Afterpay in supermarkets. Andrew Grant, a finance expert, worries shoppers might spend more than they can afford on everyday groceries. Domenique Meyrick from Financial Counselling Australia says using credit to just “make ends meet” often leads to big problems and more debt for people.
✅ Good or Bad for Your Credit?
Is BNPL bad for your credit score? Not always!
- Missing payments can hurt your score. 😥
- But, making all your payments on time could actually help your credit score! ✨ Remember, this information is general. Always think carefully about your own financial situation.
Want to Learn More?
For more details on how these regulations might affect you, read this article: