New Delhi, July 22 -- The buy now, pay later (BNPL) mode of purchasing has offered millions access to electronic purchasing with an instant, interest-free line of credit, revolutionizing online shopping. India's banking system is now intertwined with everything from food staples to electronics. However, a vital question begins to surface with all this convenience in online purchasing: What is the impact of a BNPL on your credit score?

BNPL is a short-term credit facility that allows customers to break down their total cost into smaller and easier payment instalments, usually without incurring interest costs. Compared to traditional loans, BNPL has quicker approvals, fewer requirements (if any), and often does not require a hard credit ch...