<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australians who sign up to a buy now, pay later (BNPL) service like Afterpay, Klarna or Zip Pay from today may find themselves with a lower spending limit than those who joined yesterday.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>That's because from today, BNPL services will be regulated like any other credit product in Australia (such as credit cards), forcing BNPL giants to change the way they do business.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The new regulations are designed to safeguard the millions of Australians who use BNPL services from potentially harmful credit contracts, according to the Australian Securities and Investments Commission (ASIC).</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/world/los-angeles-protests-us-marines-being-mobilised-sources-say/cff8fb51-fdb3-498d-9c95-e45e179f4c32" target="_blank"><strong><span>About 700 Marines being mobilised in response to LA protests</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Research from August 2024 showed that two in five Aussies had used a BNPL service in the previous six months, with Gen Z and Gen Y most likely to use them.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Here's everything you need to know about the new regulations.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/prue-car-nsw-deputy-premier-diagnosed-breast-cancer/5557902e-fe10-4a1d-b6ee-ce550ad7fd2e" target="_blank"><strong><span>NSW Deputy Premier Prue Car diagnosed with breast cancer</span></strong></a></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/buy-now-pay-later-changes-new-bnpl-regulations-explained/980f4155-5f2b-4f5c-9f48-daad30422f16" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><strong><span>What are the new laws for buy now, pay later services in Australia?</span></strong></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>From Tuesday, June 10, BNPL services will be required hold a credit licence and comply with existing credit laws.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Under the new regulations, they will have to ask more questions and enforce stricter policies when assessing new borrowers in a bid to prevent financial strain.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>New customers will now have to answer questions about their finances and undergo a credit check before they are allowed to borrow money and their initial spending limit may be affected by their answers and credit score.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>For example, Afterpay used to offer all new customers a $600 starting limit but from today, borrowers may be given a smaller starting limit if they have a lower credit score.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Customers with existing BNPL accounts will not be required to undergo a credit check, but BNPL services may affect all users' credit scores.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/world/qantas-jet-diverted-to-azerbaijan-in-emergency/e1d41e36-ca65-4ef1-8bb2-8be34a41f96c" target="_blank"><strong><span>Hundreds stranded after Qantas jet forced to divert</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><strong><span>What happens if I miss a payment under the new buy now, pay later rules?</span></strong></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Because BNPL services are now regulated like any other credit product, missed repayments may have a negative impact on borrowers' credit scores.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Missed or late BNPL repayments may appear on their credit reports, making it more difficult for them to take out future loans.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>This could cause issues down the road, especially when it comes to securing loans for major purchases like a home.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><strong><span>Is buy now, pay later bad for your credit score?</span></strong></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Not necessarily. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>While missed or late repayments could negatively affect a person's credit score, consistent, on-time payments may have a positive impact.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><em><span>The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.</span></em></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/how-to-follow-9news-digital/29855bb1-ad3d-4c38-bc25-3cb52af1216f" target="_blank"><strong><em><span>DOWNLOAD THE 9NEWS APP</span></em></strong></a><strong><em><span>: Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. 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