Will Sezzle Affect Your Credit Scores?

Will Sezzle Affect Your Credit Scores?

Written by Lisa Rennie
Fact-checked by Caitlin Wood
Last Updated April 5, 2022

Wouldn’t it be nice if you didn’t have to fork over the full purchase amount when you shop for products online? Moreover, how great would it be if you could finance a purchase without a credit check?

Sezzle makes that possible with its buy-now-pay-later service. 

Rather than pay for products in full with online merchants, Sezzle gives you a few weeks to make payments. That way, you can keep your hard-earned money in your pocket for a little while longer. 

Let’s take a closer look at how Sezzle works and why you might want to use it for your next online purchase. 

Who Is Sezzle? 

Sezzle is a financial technology company that operates in Canada and the US. The firm offers a buy-now-pay-later alternative payment solution involving interest-free payment plans with various online merchants, allowing consumers to purchase products and then pay for them in installments instead of one upfront payment.

How To Sign Up For Sezzle

Using Sezzle is a very straightforward process. You need to be at least 18 years old and have a valid Canada phone number or email address.

To sign up for Sezzle you can either navigate directly to their website and create an account or you can choose Sezzle as your payment method on the check-out page of any online retailer that has partnered with Sezzle.

How Does Sezzle Work? 

When you make an online purchase, you’ll have the option to finance it with Sezzle with participating merchants. Simply select Sezzle at checkout, and you’ll be prompted to create a Sezzle account the first time you use it.

When you create an account, Sezzle will conduct a soft credit check and provide an instant decision. If approved, you’ll be required to make the first of the 4 installment payments immediately which is also considered the down payment. Then, the next 3 installment payments will be scheduled over a 6-week period. 

There is no interest involved, nor are there any fees if you make timely payments. 

Do My Payments Go To Sezzle Or The Merchant?

Sezzle will pay the merchant in full on your behalf so the order can be processed on the spot and fulfilled without delay. Then, you’ll pay Sezzle back through installment payments. 

What Happens If I Can’t Make A Payment? 

You’ll get one reschedule option per order to help avoid late fees. After that, you’ll get two $5 reschedules. If your payment does not go through, you’ll be charged $10. That said, you can waive this fee if you can come up with your payment within 48 hours. 

Will Sezzle Affect Your Credit Scores? 

Since there is no credit check required, using Sezzle will not show up on your credit report and affect your credit scores. Moreover, Sezzle does not report payments to the credit bureaus, so your payments will not help build your payment history. 

Sezzle does have a feature called Sezzle Up, which allows you to have your payment history reported to the credit bureaus. However, this option is only available in the US.

What Happens If You Miss A Payment?

If you miss a payment Sezzle will charge you a $10 fee which can be waived if you make your payment within 48 hours. 

Pros And Cons Of Using Sezzle

There are plenty of incentives to using Sezzle, but there are a few drawbacks that you may want to consider as well.


  • No interest. As long as you make timely installment payments, you won’t have to worry about paying any interest. 
  • Your credit score won’t be affected. As mentioned, Sezzle only performs a soft credit check when you open an account. Unlike hard credit checks, soft credit checks will not affect your credit scores. Moreover, Sezzle does not report payments to the Canadian credit bureaus, so late payments also won’t affect your credit. However, you will incur a late fee, if you miss your payment. 
  • Spread Costs – Buy-now-pay-later services like Sezzle allows Canadians to finance the costs of everyday items over 6 weeks at no charge. 


  • Down payment required. You’ll need to put at least 25% down toward the purchase price (which is the first payment of your 4 installment payments) in order to use Sezzle at checkout. 
  • Can’t boost your credit score. Unlike the US, Canadians can’t upgrade their account to Sezzle Up and have their payment history reported to the credit bureaus. While late payments won’t affect your credit, on-time payments also won’t help your credit scores.

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What Happens If You Want To Return Something You Purchased?

You’re free to return your item and get a full refund, even if you’ve financed a purchase with Sezzle. To get a refund, you’ll have to initiate the process with the merchant, who will then send the refund to Sezzle. You’ll be notified once Sezzle receives the refund, and your payment plan will automatically be updated. 

You’ll still be required to keep up with your payments as per your agreement until the merchant processes your refund to Sezzle. Whatever is refunded to you will cancel your outstanding payments. Anything left over will be sent to the payment method you chose when you initially placed your order. 

If you receive store credit from your merchant, no changes will be made to your order. In this case, you’ll still be obligated to make your installment payments. 

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Sezzle FAQs

Is Sezzle safe? 

Yes, the buy-now-pay-later service Sezzle is safe to use. It’s in compliance with Payment Card Industry (PCI) standards, so your personal information and payment transactions are secure. 

Does Sezzle require a hard credit check?

No, a hard credit check is not required to use Sezzle. Sezzle only requires a soft credit check, after which you’ll receive notification of their decision right away.

What is Sezzle’s credit limit? 

Your credit limit will be automatically determined by Sizzle’s decision process. It will consider your history with Sezzle including your payment history and open orders.

Final Thoughts

Sezzle can be a great tool to use if you’re looking for a way to avoid paying in full for an online purchase, but without the hassle that may come with credit cards or getting your credit checked for a loan. If you’re looking for an interest-free way to finance an online purchase, consider opening up a Sezzle account at your next online checkout.

Rating of 5/5 based on 1 vote.

Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.

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