Does Buy Now Pay Later Affect Your Credit Score in the UAE?

Understand how installment repayments can affect your credit history, how to manage them responsibly and where to explore Deem Easy Payment Plans.

Yes, buy now, pay later (BNPL) can affect your credit score in the UAE. Reported late or missed payments may affect your credit record and future credit applications. Paying on time supports a positive repayment history, although it does not guarantee a specific increase in your score.

If you are planning to spread the cost of a purchase, Deem Easy Payment Plans allow eligible Deem Credit Card purchases to be repaid in monthly installments, subject to approval and applicable terms. Before choosing a plan, understand the full cost, check the repayment schedule and make sure the monthly commitment fits your budget.

This guide explains how instalments and credit reporting work together, what Deem offers and how to keep your repayments on track.

Planning a Purchase? Explore Deem Easy Payment Plans

Deem Easy Payment Plans give eligible Deem Credit Card customers the option to spread purchase repayments over an agreed period. Available offers include 0% interest installment plans at participating merchants, subject to the specific offer terms.

Visit the Deem Easy Payment Plans page to explore participating merchants and available offers. Before choosing a plan, check:

• The minimum purchase amount and transaction eligibility.
• The available repayment periods and monthly instalment.
• The applicable interest rate and any processing fees.
• The total amount payable.
• The conditions for cancellation or early settlement.

A 0% interest offer does not necessarily mean there are no fees. Review the relevant merchant offer and the Easy Payment Plan Key Facts Statement before accepting.

With a Deem Easy Payment Plan, monthly installments are billed through your Deem Credit Card statement. This differs from a third-party BNPL arrangement, where repayments follow the provider’s own schedule.

How Do Instalment Payments Work?

Instalment plans divide a purchase into payments over an agreed period. Depending on the arrangement, you may make an initial payment at checkout or repay through scheduled monthly installments.

For example, an AED 1,200 purchase divided into four equal payments would mean paying AED 300 each time, assuming no interest or fees. While each payment is smaller, you are still committing to repay the full AED 1,200.

Before taking on a plan, consider whether you can comfortably meet every repayment alongside your essential expenses and existing commitments.

How to Manage Your Instalments Responsibly

Budget for the full commitment

Review all your instalments together, including any BNPL plans, card repayments and loans. Several small payments can add up to a significant monthly amount.

Choose a repayment period based on what you can afford and the total cost of the plan. A lower monthly installment over a longer period may cost more overall if interest or fees apply.

Keep track of payment dates

Record the amount and due date of each repayment. Set reminders and check that automatic payments have been processed successfully.

For a Deem Easy Payment Plan, review your monthly card statement and pay according to the amount and due date shown. Your statement may also include other purchases, fees and charges, so the instalment amount alone may not cover your payment obligation.

Understand your card repayment

Paying only the minimum amount due can increase the time and interest needed to repay your remaining credit card balance. Plan to pay your full statement balance by the due date, in accordance with your card and installment terms. Any interest agreed under your installment plan remains applicable.

Check refunds and cancellations

If you return or cancel a purchase, confirm how the refund affects your installment plan. Do not assume that the repayment schedule has stopped until the relevant provider confirms the change.

Keep your payment confirmations and refund records until the adjustment is reflected correctly.

Seek support before a payment becomes overdue

If you expect difficulty making a repayment, contact the relevant provider before the due date to discuss the options available.

For help with your Deem Credit Card or Easy Payment Plan, contact Deem Customer Care on 600 525550.

What Does AECB Reporting Mean for BNPL Customers?

Etihad Credit Bureau, commonly known as AECB, has included BNPL account information from Tabby and Tamara in UAE credit reports with effect from July 2026. The update covers existing and new customers and includes relevant historical transaction data.

This means reported BNPL commitments can form part of the credit information available to authorised lenders when assessing an application. Reporting arrangements may differ for other providers, so check directly with your provider if you are unsure.

Your credit report contains account and repayment information, while your credit score summarises credit risk. Read Deem’s guide to credit scores in the UAE to understand the difference and how to review your credit information.

Can Missed Instalments Affect Your Credit Score?

Reported late or missed repayments may affect your credit record and score. The impact depends on your overall credit profile; there is no fixed score change for every purchase or missed installment.

If you have a Deem Easy Payment Plan, your installments form part of your card repayment obligations. Missing the required card payment may result in applicable charges and affect your credit record.

Having an installment plan does not automatically make you ineligible for future credit. However, lenders may consider your reported commitments and repayment history alongside your income, existing liabilities and ability to afford additional repayments.

What If You Use Your Deem Credit Card to Pay a BNPL Provider?

If a third-party BNPL provider accepts your Deem Credit Card, each successful installment charge becomes part of your card balance.

You therefore have two payment dates to manage: the provider’s instalment date and your Deem Credit Card payment due date.

For example, when a provider charges AED 300 to your card, that instalment is paid to the provider. The AED 300 remains payable on your Deem card account.

• If the provider’s charge fails: The instalment remains payable to the provider. Check your card status and available credit, then contact the provider to confirm how to complete the payment.
• If the charge succeeds: Include it in your card repayment budget and pay according to your Deem statement.

An interest-free BNPL arrangement does not automatically make an unpaid credit card balance interest-free. Review the Deem Credit Card Key Facts Statement for repayment requirements and applicable charges.

Where Can You Find Deem’s Instalment Options?

Explore offers: Visit Deem Easy Payment Plans to view participating merchants and their offer terms.

Review costs and conditions: Open the Easy Payment Plan document on Deem’s Key Facts Statement page.

Check your options: Contact Deem Customer Care on 600 525550 for assistance with eligibility and how to request a plan.

Find repayment methods: Visit Deem’s payment options guide and follow the payment instructions and due date on your statement.

Choose a Plan That Fits Your Budget

Spreading the cost of a purchase can offer flexibility when you understand the terms and can meet every repayment. Review your existing commitments, compare the full cost and keep track of your payment dates.

Planning your next purchase? Explore Deem Easy Payment Plans to find available installment offers and check the terms before choosing a plan.

Frequently Asked Questions

Does BNPL affect your credit score in the UAE?

Yes, it can. Reported late or missed payments may affect your credit record and score. Paying on time supports a positive repayment history but does not guarantee a score increase.

Does Deem offer installment plans for credit card purchases?

Yes. Eligible Deem Credit Card purchases may qualify for Deem Easy Payment Plans, subject to approval and applicable terms. Visit the Easy Payment Plans page for available merchant offers.

Are all Deem Easy Payment Plans interest-free?

The interest rate and fees depend on the plan or offer. Deem advertises 0% instalment offers at participating merchants, but processing fees or other conditions may apply. Check the specific terms before accepting.

How do I repay a Deem Easy Payment Plan?

Monthly instalments are billed through your Deem Credit Card statement. Follow the payment amount and due date shown, taking account of any other card transactions and charges.

Is paying a BNPL provider the same as paying my Deem card bill?

No. When a BNPL instalment is successfully charged to your Deem Credit Card, the provider receives payment. You must still repay the resulting amount on your card account according to your statement and terms.

Where can I find Deem Easy Payment Plan fees and terms?

Visit the Easy Payment Plans page for merchant-specific offers and the Key Facts Statement page for product information. Confirm the interest, fees, repayment period and total cost applicable to your plan before accepting.

This article provides general financial information. BNPL reporting arrangements and provider terms may change. Deem products, instalment plans and credit applications are subject to eligibility, applicable terms and Deem’s assessment and approval.