If you clicked on this article, you must be wondering does Sezzle report to Credit Bureaus. Keep reading to find out!
Sezzle’s buy now, pay later business model brings a lot of questions when it comes to credit reports. They barely do a soft credit check. Yet, you are buying products on credit and don’t have to pay interest or any kind of fees if you repay them on time. Considering all these aspects, does Sezzle report to credit bureaus?
Is Sezzle Reporting To Credit Bureaus?
The answer to whether does Sezzle report to Credit Bureaus is No, but Sezzle Up sends your credit information to three of the major credit bureaus. The upgraded version of Sezzle, Sezzle Up reports to TransUnion, Experian, and Equifax.
Sezzle Up is the buy now, pay later option that works with you to help build your credit. When you upgrade to Sezzle Up, you enable us to report your payment history to the credit bureaus. By making your payments on time, you can increase your credit score!
How Does Sezzle Report to Credit Bureaus?
Although the answer to whether does Sezzle report to Credit Bureaus is no, Sezzle Up does report the information. How do they do it, though? You might wonder about the extent to which Sezzle reports your payment activities.
Here’s what happens. When you become a Sezzle Up member, you are giving Sezzle permission to report your payment competency to the three bureaus.
Sezzle reviews your current payment status and outstanding balance at the end of the month. Only your month-end standing is sent to the bureaus.
If you missed a payment earlier in the month but paid it on the next scheduled 48 hours with the $10 fine, it does not affect your score at the end of the month. It is only when you miss the payment for an entirety of 30 days that Sezzle sends the failed payment report to the bureaus.
- The longer you delay your payment, the more you rack up negative scores on your report. If you go past 90 days, your credit score will take a massive hit. Sezzle might also close your account.
- Even if you make a late payment, if you do it by month-end, Sezzle will report it as on time. This positively affects your credit score as credit bureaus deem you reliable. However, the scores from Sezzle might not have a huge impact on your overall credit.
- Still, on-time payments can accumulate up to a good credit score with time.
- Your payments won’t be sent to the bureau if you aren’t a Sezzle Up member.
- Failed or late payments are reported the month after. For example, if you fail a payment on 15 February and continue to not pay for 30 days from the scheduled due date, Sezzle will send the failed payment report to the credit bureaus in March.
As is the case with all new credit accounts, when Sezzle first begins reporting your payment activities, you may see a dip in your credit score. This is because needing to borrow money, in itself, is considered a negative aspect.
However, as you continue to make payments on time, your consistency in showing up has a way bigger positive effect on your credit score.
What Information Does Sezzle Send to the Credit Bureaus?
Sezzle takes a couple of snapshots of your account and sends them to the credit bureaus.
- Late or failed payments for over 30 days.
- Current balance, including payments due in the future.
- Your credit limit on Sezzle.
- Your date of joining on Sezzle.
- Your SSN, date of birth, address, and legal name.
Once the snapshot is sent, it can take some time before you see it reflect on your credit score. This is because the credit bureaus take time to process the details.
How to Upgrade to Sezzle Up?
Sezzle is a payment platform where you pay for products in four installments. You pay 25% upfront and pay the rest in three installments over the course of six weeks. Each installment is paid every two weeks.
What happens is that Sezzle pays the entire amount for you to any of the 48,700 brands you chose from their rotation. Your job is to repay Sezzle for it. If you do it on time, you don’t have to pay any kind of interest.
In the event you miss a payment, Sezzle will shift the due date 2 days later and add a late payment fee of $10 to the missed installment.
Sezzle Up is the upgraded version for users.
While Sezzle does have a premium membership option, it’s not how you can upgrade to Sezzle Up. If you want, you never have to pay anything to use Sezzle. There is no cost to signing up to Sezzle at all. Instead, there are three things you can do:
- Link your Sezzle account to your bank account as the default payment method.
- Continuously pay your order installments on time. In fact, try to pay earlier than the due date.
- Verify your account with your zip code, legal name, and Social Security Number.
If you show up consistently, you will get to the Sezzle Up tier in no time.
In addition to building your credit score, Sezzle Up raises your spending limit. You start with a $500 spending limit per month on Sezzle Up, raise it to $750 if your standing balance continues to be good.
Eventually, you get to $2500, which is the highest you can spend on Sezzle.
1. Does Sezzle perform a credit check?
Yes, Sezzle performs a soft credit check when you sign up. This does not affect your current credit in any way. It is only when you upgrade to Sezzle Up, and Sezzle begins reporting to credit bureaus of your payment history that there could be an impact on your credit.
2. Why isn’t there any Sezzle activity on my credit report?
Sezzle takes about 60 days from your sign-in date to begin reporting your information to the credit bureaus. You have to account for the time you took to upgrade to Sezzle up too.
3. What kind of credit is Sezzle credit?
The credit you owe to Sezzle is considered revolving credit. It is in the same veins as owning a credit card.
Does Sezzle report to credit bureaus? They do. If you are seeing negative credit scores despite making on-time payments on Sezzle, it may have nothing to do with Sezzle at all. Lots of other factors affect your credit score. The best way to understand your credit report is to get a financial advisor who can give you tips on how to improve your credit.
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