PayLater: Spend limit and credit assessments

Updated 25 July 2023 10:31

ShopBack PayLater lets you split your purchases into instalments you can pay later. The maximum amount you can spend with PayLater at any time depends on various factors, such as your shopping and payment behaviours and your credit assessment.

Purpose of a credit assessment

ShopBack is committed to Singapore’s Buy Now, Pay Later Code of Conduct (BNPL Code), which aims to safeguard consumers against taking on too much debt. A credit assessment helps ShopBack make decisions on the maximum amount you can spend with PayLater at any time.

This means that if you haven’t provided info for a credit assessment, we can only offer you a maximum PayLater limit of $2,000.

The BNPL Code of Conduct

Credit assessment to increase or maintain PayLater limit

Depending on your frequency of using PayLater and repayment history, you might be asked to do a credit assessment to increase or maintain your PayLater limit. To do this, you’ll be asked to share your income info such as tax notice and CPF contribution via SingPass MyInfo or add your credit card.

We take the privacy and security of your data seriously and will only use it for the purposes of the credit assessment. The process is usually instant, although in some rare cases it may take longer.

New PayLater limit after assessment

Once we have your info, we’ll let you know what your new PayLater limit is. Note that your PayLater limit is based on your credit assessment as well as other factors. It can go up or down as these factors change over time.

Other information we consider

As part of the BNPL Code, all buy now, pay later providers are required to share credit information about their customers with the other providers. This includes:

How much you’ve borrowed across all buy now, pay later providers.
Whether and when you’ve defaulted on any payments.

We may use this information in our credit assessments when determining if you’re eligible to borrow more than $ 2,000 or if we’ll approve your purchase.

Validity period of a credit assessment

When the info you provide is no longer valid (that is, they’ve expired), we’ll need to renew your credit assessment. For most people, this happens 1-2 years after their last assessment.

Don’t worry, we’ll send you a reminder to update your info. If you’ve provided us with multiple pieces of information, we’ll send the reminder before the last piece of information expires. This could be credit card, CPF, tax notices, or work pass info.

If you haven’t requested another assessment when the previous one expires, your limit will be reset.

Quick answers

Will the credit assessment affect my credit score?

No, it will not impact your credit score. Our credit assessment is only used to evaluate your repayment capacity and ensure that you borrow within your means, so as to safeguard you from taking on unmanageable debt.

I submitted a credit card, why did I fail the credit assessment?

Some cards not supported as valid credit cards, please try to add another credit card.

What if I fail the credit assessment?

This is not a test. During the credit assessment process, we evaluate whether we’re able to provide you with a PayLater limit higher than $2,000. So the possible outcomes are:

We increase your limit beyond $2,000.
We keep your limit at $2,000.
We reduce your limit (if you have unpaid overdue instalments with other buy now, pay later providers.)

Is this a one-time thing?

No, ShopBack may conduct periodic credit checks to monitor your financial situation and make sure that you can still afford to repay the amount you borrow. However, we will notify you before conducting any further credit assessments and explain the reason for doing so.

Further info

If you still have questions or need help, please reach out to Sparky, ShopBack's friendly virtual assistant.

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