Zip (known in the US as the company behind Zip Pay and previously Quadpay) offers both short pay-in-4 style plans and larger financing products, and the credit implications differ between them.
Zip Pay (short-term, pay in 4)
Zip’s short-term installment product generally uses a soft credit check for approval, which does not affect your credit score. As with other pay-in-4 providers, the main risk to your score comes from missed payments rather than the initial signup.
Zip Money and larger financing
Zip’s larger financing products are more comparable to a traditional installment loan and are more likely to involve a hard inquiry and formal credit bureau reporting, similar to Affirm’s longer-term loans.
- Read the terms shown at checkout — Zip typically indicates which product type you’re being offered
- Missed payments can lead to collections, which is the biggest risk to your score
- Zip’s policies, like most BNPL providers, have changed over time as the industry matures
For the bigger picture on how many BNPL accounts is reasonable to hold at once, read how many BNPL loans is too many, or go back to the full US BNPL guide.