Does PayBright Affect Credit Score? 

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In the past, Canadians often had to resort to using their credit cards and other high-interest sources of funds to make purchases when they’re cash-strapped. Fortunately, there are now many alternatives.

With the advent of “buy now, pay later” or BNPL solutions, you can now make purchases at several retailers and choose to spread the payment over time with no interest. 

One of the popular buy now, pay later (BNPL) providers in Canada is PayBright. It is a financial services company that offers instalment plans for shoppers. 

Canadians hoping to use its services are usually concerned about whether, and how, PayBright impacts their credit score. So, does PayBright affect your credit score in Canada? 

In this article we’ll be discussing PayBright and whether or not it affects your credit score.

So continue reading to find out!

Does PayBright Affect Credit Score?

If you’re thinking of signing up for PayBright, you might be wondering whether it will affect your credit score.

The short answer to the question is Yes. PayBright can affect your credit score but it depends on how.

To be clear, PayBright does not conduct a hard credit check on your profile when you apply. That means your credit score is not affected just by getting approved for a payment plan. 

However, PayBright reports your payment history to the credit bureaus so this could potentially affect your credit score – positively if you make all the payments on time and negatively if you miss payments.

So, if you want to avoid harming your credit score, it’s important to always make your instalment payments on time.

Missing a payment can cause your score to drop. As long as you’re careful and make timely payments, PayBright shouldn’t have a negative impact on your credit score over the long term.

Overview of PayBright

PayBright is a popular Canadian BNPL provider whose goal is to make it easy for you to shop online and pay for your purchases over time. 

The company has a wide range of clients including major retail chains that serves Canadians across the country.

PayBright offers unsecured loans to consumers in Canada who are looking for short or long-term financing at low-interest rates. Their interest ranges from 0% to 29.95%.

The company offers pay-after-delivery loans with two payment plans – “Pay Monthly” and “Pay in 4 plans”. 

Does Paybright affect your Canadian credit score?

With the “Pay Monthly” plan, you can make purchases at partner stores and spread the payments over a number of months that vary depending on the store and item. The period can be as short as 3 to 6 months and as long as a year.

And with the “Pay in 4 plan”, you can make purchases at partner shops under $1,000 and pay back in 4 equal biweekly payments. 

If you’re looking for a flexible and affordable way to finance your next purchase, PayBright could be the perfect solution. 

Pros and Cons of PayBright

PayBright offers a flexible way for shoppers to finance their purchases. The app allows you to make purchases without borrowing money from a financial institution at high interest rates. 

While this can be helpful during an emergency, it does come with its share of cons as well.

Here are some of the pros and cons of PayBright you need to be aware of before deciding on whether or not you should use this service:


  • Interest-free loan: Some PayBright retail partners offer interest-free BNPL that make everything affordable.
  • Flexible payment options: You can clear off your loan faster by paying the full balance or making extra payments without penalty.  This helps you reduce any applicable interest on your loan. 
  • Multiple retail shops: You can shops at over 7,000 stores in Canada through PayBright. This includes Apple, The Bay, Samsung, eBau, Endy and Sleep Country.


  • Hard credit check: If you want to make a purchase through the “Pay Monthly” plan, your credit score may be impacted because some PayBright partners run a hard check for that.
  • Initial payment on purchase: Once your order is confirmed, PayBright will debit your card automatically for the initial payment. This is not the case with other BNPL apps that don’t debit payment on the first purchase.
  • Processing fees: Even though PayBright doesn’t charge prepayment fees, some of its plans charge monthly processing fees.

Overview of Buy Now Pay Later 

Buy now, pay later instalment loans have become increasingly popular in recent years as a way to finance large purchases.

Unlike a traditional instalment loan, which requires a lump-sum payment, BNPL plans allow you to spread out your payments over time. 

This can make it easier to manage your finances and avoid taking on too much debt at once. 

It can also help you to spread out the cost of a purchase over time, making it more affordable. 

However, it is important to be aware of the potential fees associated with these loans before you agree to one. 

Late payments can incur significant fees, and some BNPL plans also charge processing fees. 

These fees can add up quickly, and you may end up paying more for your purchase than you would with a traditional loan. 

Nonetheless, for those who need a little extra time to pay for a purchase, buy now, pay later loans can be a helpful option.

Alternatives of PayBright

PayBright has been around for a long time. It’s well established and has been used by millions of Canadians.

However, if you decide to not use PayBright, there are other options out there. Here are some others that you might want to consider:


Afterpay is a leading BNPL platform that was founded in Australia with the premise that every customer should be able to buy now and pay later without incurring finance charges.

The company offers BNPL financing plans that allow users to buy things online and pay for them over time.

Users can choose to pay off the item in full or make four instalment payments until the full amount is paid off. 

Also, Afterpay does not charge interest on any purchased items and it only charges a fee if the transaction is not completed within the agreed time frame.


Klarna is a Sweden company that also operates in other countries including Canada. 

The company was founded in 2005 and became one of the largest buy now, pay later companies for in-store and online payments. 

When you purchase using the Klarna credit or debit card, the company will automatically deduct four installment payments each week from the card that you link to your account.

The good thing is that Klarna doesn’t charge you anything extra if you pay off a part of your entire loan before the due date.

If you are looking for a secured loan with low-interest rates, Klarna may be a good choice. The service offers low rates and flexible repayment options.

RECOMMEND READING: EI Payday Loans in Canada


Does PayBright prequalification affect credit score?

As part of its pre-qualification process, PayBright checks your credit score, but it won’t affect your credit score. This is a soft credit check that won’t affect your credit score.

Is PayBright a good idea?

The PayBright payment option is a great way to spread the bill of a costly purchase out over time. However, it’s crucial to remember that by using PayBright, you are actually accruing debt. Only buy what you actually need and can afford.

Is PayBright really interest free?

PayBright offers payment plans with interest rates ranging from 0% to 29.95% APR. This means that you can get an interest-free option from PayBright which varies according to retailers. In some cases, there could be interest or payment processing costs.

Can you pay off PayBright early in Canada?

Yes. PayBright allows you to make early payments whenever you wish to without paying any fees 

Does PayBright Affect Credit Score? Now You Know

PayBright is a great way to manage your cash flow when buying items you really need but don’t want to pay cash for. It has been around for many years and seem to have great reviews. 

The problem with PayBright is that it can affect your credit score if you choose the PayBright “Pay Monthly” plan. If you opt for the monthly plan, make sure you’re always on time with your payments to avoid damaging your credit rating. 

I hope this article was helpful in explaining how PayBright can affect your credit score. If you have any questions, please feel free to reach out to us. 

Simon is a CPA by day and a Personal Finance Blogger by night. With over a decade experience in financial services, he's passionate about personal finance, investing and helping people take control of their financial life.

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