Credit Building > Does Zilch Improve Your Credit Score? Here's What You Need to Know

Does Zilch Improve Your Credit Score? Here's What You Need to Know

Wollit Team2 minute read · Updated 18th February 2025

If you're looking to build your credit score, you might be wondering whether Zilch can help. While buy now, pay later services can affect your credit score, it's important to understand exactly how it works and whether it's the right choice for your credit-building journey.

How Does Zilch Work?

Zilch is a regulated UK payment platform that lets you split purchases into installments using a virtual Mastercard. When you apply, Zilch performs a soft credit check that won't affect your credit score. New users typically start with a credit limit of £50, which may increase over time with responsible use. You can choose to pay in installments or pay upfront for rewards.

Can Zilch Help Build Your Credit?

Zilch does report your payment behavior to credit reference agencies, which means it can influence your credit score. Making payments on time can demonstrate responsible credit management and potentially help improve your score over time. As you prove your reliability, Zilch may gradually increase your credit limit, which can also positively impact your credit profile.

However, it's crucial to understand that missed payments can have serious consequences. Late payments are reported to credit agencies and can remain on your credit file for several years, potentially making it harder to access credit in the future. If an account falls into default, the damage to your credit score can be significant.

Using Zilch Responsibly

Managing a Zilch account effectively requires careful attention to your spending and payment schedule. Only make purchases you can confidently afford to repay, and always ensure you have sufficient funds available for the automatic payments. While Zilch offers a payment snooze feature for temporary difficulties, it's best used sparingly and not relied upon regularly.

Remember that while Zilch can help build credit, it's primarily designed as a payment service rather than a dedicated credit-building tool. Its main purpose is to provide flexible payment options for purchases, with credit building as a secondary benefit.

A More Focused Approach to Credit Building

If your primary goal is to improve your credit score, you might benefit from a more structured approach. Dedicated credit-building services, like Wollit's Credit Builder, focus specifically on improving your credit score through regular, manageable monthly payments that are reported to all major credit reference agencies.

Unlike buy now, pay later services, dedicated credit builders don't involve shopping or the temptation to spend. Instead, they provide a clear path to credit improvement through consistent payment reporting and progress tracking.

Making the Right Choice

When considering whether to use Zilch for credit building, think about your primary goal. If you're mainly looking for flexible payment options while shopping, Zilch could be a good choice - just be sure to manage it responsibly. However, if your main priority is improving your credit score, a dedicated credit-building service might better suit your needs.

Either way, remember that building credit takes time and consistency. The key is choosing a method that aligns with your financial habits and goals while helping you maintain responsible credit behavior over time.