What happens if I don't pay my PayLater?

Consequences of Defaulting on PayLater Payments

PayLater services offer convenient payment options by allowing customers to purchase goods or services and defer the payment until a later date. However, failing to make timely payments on these services can have significant consequences.

Suspension of Account

If a PayLater payment is missed, the account will be suspended. This suspension prevents the customer from making any further purchases or withdrawals using the service. The suspension remains in place until the missed payment is cleared.

Overdue Balance and Account Closure

Failed auto-payments can lead to an overdue balance on the PayLater account. If the overdue balance is not resolved promptly, the account may be closed. This means that the customer will no longer have access to the PayLater service and may face additional penalties, such as late fees or interest charges.

Impact on Credit Score

PayLater payments are reported to credit bureaus, so defaulting on payments can negatively impact a customer’s credit score. A damaged credit score can affect a person’s ability to obtain loans, credit cards, and other financial products in the future.

Recommendation

It is crucial to prioritize PayLater payments and ensure that they are made on time. If a payment is missed or an auto-payment fails, customers should contact the PayLater provider immediately to resolve the issue and avoid suspension or closure of their account. Timely payments help maintain a good credit history and ensure continued access to PayLater services.