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Many online payment networks now allow instant installment plans for small retail purchases. Normally, the purchase would be a one time payment. These products transparently convert it to a payment plan, often without interest.

For example, PayPal has a service where instead of say, paying $60 for a pair of shoes, you can pay 4 installments of $15. This is implemented as a loan, so they ask for SSN, your credit history etc.

Does routinely using such services negatively impact your credit score?

gomennathan
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It may. It will affect the credit utilization, account age, total debt, etc - all factors in determining the score.

It will also affect your record of on-time payments and paying off loans, which are positive signals.

littleadv
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