Mobikwik ZIP Pay Later Credits Usage and Impact on Credit Score July 8, 2024 by Anil Patil

Using Mobikwik Zip Pay Later Services And Want to Some Important Knowledge? This article is for you. 

For peoples between 18 to 30 years of age, Earning money after marriage or in student life can be a very difficult point. If the job and credit score are good then it is fine, otherwise taking loan, borrowing money and making arrangements seems to be a common things at this age.

Mobikwik and thousands of other personal loan apps are available on the finance industry. Nowadays, loans from BNPL (Buy Now Pay Later to personal loans are readily offered.

My name is Anil Patil, and I have been using Mobikwik Zip Pay Later for the past 18 months. In this article, I will share my experience about Mobikwik Pay Later and explain what you should do if you need money right away and how to use these credits.

In Mobikwik, I initially got a limit of Rs 1200 which after regular use has now increased to Rs 7500.

Even if you have poor credit history, you can still get a loan of Rs.10,000–60,000. In this article, we are going to talk about Mobikwik company, which offers a digital credits upto Rs.60,000. However, it is very important to understand its uses and affects on credit scores.

Mobikwik ZIP Pay Later

Mobikwik is run by One MobiKwik Systems Limited company whose head office is located in Haryana. It has around 140 million users including around 25.3 Million zip pay later till FY21 which includes its 1 Lakh+ merchants. Buy now pay later provides digital credits for utility bill payments, merchants and online shopping.

How to use Mobikwik ZIP Balance (Credits)

The company and RBI state that the BNPL credits given by NBFC can be used only for recharges, bill payments, and merchants. Similarly, Mobikwik also gives digital credits worth Rs. 60,000 to its customers after Zip Pay. It cannot be transferred to wallet or bank.

Before using Mobikwik balance, please note that Rs.250-500 penalty charges, 2.5% of the Principal Outstanding (POS) are levied by Mobikwik if the repayment is not made on time.

How to Recharge and Bill payments with Mobikwik ZIP Pay Later

• Open Mobikwik App
• Click On Recharge option
• Enter your Mobile number and plan details
• Select Pay Later as payment method
• Click Submit and your recharge will be successful with Mobikwik Zip Pay Later balance.

Impact on Credit Score

Suppose for some reason you are not able to remarry on time, then what will happen? We know that our credit score will be affected but apart from this we also know that we will have to pay a hefty late fee which is more than the return on FD of any bank.

But not only this, the loan giving company also harasses people through recovery agents, so now understand that this does not only impact your credit score but also impacts your entire life.

How does it impact your credit score?

Imagine, if you have not paid your Mobikwik ZIP Due bill till the 5th of the month, then after a few days you will get a call from the recovery agent, in which he will say that you have not paid your bill yet and will advise you to pay.

Even after this, if you do not have money to pay, then the report of your bad credit will be sent to the Credit Bureau, in this way your credit score points will suddenly fall.

Take a loan from someone, but it is better to stay away from such a company which can affect your entire life if you do not pay on time.

As we know, every day there is news about suicide in the news, in which youth of 18 to 30 years are taking loan from some loan application and committing suicide if they do not pay again.

Also Read: How to Close Mobikwik ZIP Pay Later Account Permanently: Step-by-Step Guide

Conclusion

Not only due to pay later but also in these applications could falls your credit score while inquiring for financial services like personal loan, credit card. I had enquired for HDFC Credit Card and it got rejected, so some points were reduced from my credit score.

I hope now you understand impact on credit score by using mobikwik ZIP Pay later.

Comment if you have any questions about this topic.

Mobikwik Pay Later FAQ’s

Here are some most frequently asked questions,

Where to use Mobikwik ZIP balance?

You can always use Mobikwik ZIP balance for online shopping apps, recharges and bill payments. Let’s know in brief,

Online Shopping & Merchants,

Mobikwik has 1 lakh merchants across differents categories like groceries, medicines, food, clothes, and electronics.

Recharge & Bill Payments,

You can easily recharges for utilities bills like electricity, gas, water, DTH recharge, and mobile recharges using ZIP Pay Later balance.

Pay Rent (Selected users)

You can also pay your house or room rent with mobikwik zip pay later easily, by selecting Pay Rent option from Mobikwik App Home screen select pay later in payment method.