I'm trying to understand the likely longer term effects of BNPL, but I don't understand the credit rating system very well. I understand that most of the big BNPL have monthly fees, late fees etc that make up a big chunk of revenue. I understand if you fail to make payments using them it can reflect negatively on you (reported in your negative credit rating score), however if you do make payments it does not effect positively on you. Given the way SPT works using existing credit debt, is it possible it's unique to the BNPL sector as you can indirectly build your positive credit score as if you do make your payments, it's paying off locked credit?
so in this sense you could damage your rating using SPT if late, but you can also improve it by being on time (which the others don't offer?)
