Will Very Pay affect my credit score?

If you’re browsing Very with a specific item in mind or simply hoping to indulge in a little retail therapy, the prospect of Very Pay can make it feel even easier to click through to checkout – even if you can’t afford your purchase right now.
Very Pay is designed to offer flexible payment plans that let customers split the cost of their shopping over time or delay paying for their purchase.
Sounds like a win/win? Before you head over to the website and start your shopping spree, it’s worth taking some time to understand how it all works and what might happen to your credit score:

What is buy now, pay later?

While individual providers can operate slightly differently, in a nutshell, buy now, pay later means you can buy an item now and then pay for it days, weeks, or even months later.
This payment option was popularised by catalogue companies who have given their customers the ability to defer their payment or pay in instalments for several years now.
But the growth of online payment providers like Klarna, Clearpay, and PayPal Pay in 3 has brought more attention to this type of finance.  
In most cases, you won’t have to worry about paying interest if you make your payments on time. However, if you choose to start a retailer credit account and only make the minimum monthly payment instead of clearing the balance, interest might be charged.

What is Very Pay?

Very.co.uk is one of the UK’s biggest online retailers that sells a range of fashion, home, and electrical goods to its 4.4 million customers.
If you’ve shopped with Very, you’ll likely have been offered Very Pay. This is the umbrella term used to describe a selection of payment options the company provides to eligible customers.
There are three main ways to pay with Very Pay:

Take 3

This lets you split the cost of an item into three payments over three months. If you make all the payments on time, you won’t have any interest charged.

Buy Now, Pay Later

Depending on your eligibility and the amount you spend, you could delay paying for an item for up to 12 months.

Pay Monthly

You could delay paying for an item for at least 20 days by choosing to pay monthly. This option works a lot like a credit card, you’ll have a set credit limit and receive a monthly statement based on the purchases you’ve made. You’ll need to make a payment towards your balance on the same day each month. You can choose to either pay off the balance or just the minimum. If you do decide to only pay the minimum, you’ll be charged interest.

Does Very Pay affect your credit score?

As a credit provider, Very Pay does report details of your account to the UK’s credit reference agencies. This means how you manage your Very Pay can affect your credit score.
Opening a Very Pay account only involves a soft credit check to assess your eligibility, so this shouldn’t affect your credit score in any way.
However, once you start making use of the flexible payment terms on offer, the way you manage your payment schedule can have a positive or negative effect on your score.

Will using Very Pay improve my credit score?

If you manage your Very Pay account without any issues and make all your required payments on time and in full, it might improve your credit score.
Having a successfully managed finance option like Very Pay on your credit report may show other lenders that you can budget, make payments on schedule, and can be a reliable borrower.

Is there any negative impact on my credit score?

Very Pay could cause your credit score to fall if you don’t keep up with your repayments.
If you need to buy an item quickly but don’t know if you can afford it or you’re tempted to splash out with the promise that you don’t need to pay immediately, your payment date might arrive before you know it, and before you’ve had the chance to get the funds you need.
In this case, you won’t have fulfilled the terms of your agreement and could have the product withdrawn. Your default will also likely be reported to the credit reference agencies and could negatively impact your credit score. Having missed payments on your credit report shows lenders that you may not be able to manage finance correctly and might make them more reluctant to offer you credit in the future.

Do Very Pay do a credit check?

If you choose to shop with Very Pay and open an account, they’ll carry out a credit check to assess your eligibility and affordability. This will typically be a soft credit check, which allows them to see your financial history but won’t be visible to other lenders and shouldn’t affect your credit score. Very will also use this information to determine your credit limit, which is how much you can borrow with Pay Monthly.

FAQs about Very Pay and credit

Do all buy now, pay later companies conduct ‘soft’ credit checks?

Most companies will carry out a soft credit check before approving you for their buy now, pay later programmes. This lets them get a top-line view of your financial history, but the check won’t be visible to other lenders and shouldn’t impact your credit score.


Klarna, Clearpay, and PayPal Pay in 3 all conduct a soft credit check as part of their eligibility assessments. However, Laybuy carry out a hard credit check straight away. Hard credit checks leave a mark on your credit report for up to two years and having too many hard checks in a short time could negatively affect your credit.

What happens if I miss my payments?

No matter whether you miss a payment by accident or because you can’t afford to pay it, falling behind on your Very Pay schedule could impact your financial situation and your credit score.


If you’ve opted for Take 3, for example, missing a payment will mean you’re no longer eligible for the product and you’ll likely face interest charges. Very may also charge an additional fee of £12.


Fail to pay at all and your account could fall into default, which will be reported to the credit reference agencies and could damage your credit score.


Contact Very if you’re concerned you won’t be able to make a payment and they may be able to offer alternative solutions before interest and penalty charges are applied.

What can I do to improve my credit score?

No matter what your credit score looks like right now, you can always take steps to improve it over time. While it’s not an exact science and different factors can affect your credit differently, following the below tips could help give yours a boost:
·      Registering on the electoral roll
·      Make debt payments in full and on time
·      Check your credit report regularly and act quickly to get any errors removed
·      Minimise the number of hard searches you have in a short time
·      Keep your credit utilisation percentage low
·      Make sure you’re not financially linked to people with bad credit scores

What are better ways to build credit?

While using Very Pay can be convenient, especially if you’re a regular shopper with Very, and give you some time to get the funds to cover a purchase you need straight away, it’s not always the best way to build credit.
You may be better off building credit by taking out an interest free credit card. If you have a good credit score, can manage the payments responsibly, and will clear the balance before the 0% rate period ends, buying on credit card could boost your credit score. Even so, it’s a good idea to not max out your credit cards each month and leave a gap of at least a few months before applying for another card.