Pay later or postpaid services can impact your credit score

When going through your credit report, don’t be surprised if you see loans or enquiries from lenders whom you have never approached. There is a likelihood that these lenders are partners of e-commerce platforms from which you had availed of pay later or postpaid services.

Take the example of Amazon India. The company has tied up with Capital Float and IDFC First Bank for its pay later services, according to the company’s website. If you sign up for it, you will see an approved credit line in your credit report from one of the lenders.

Similarly, Ola Money had a tie-up with Aditya Birla Finance Ltd (ABFL). If you had signed up for Ola Money Postpaid, your credit report would have a limit sanctioned by ABFL.