Uncovering Your Afterpay Limit: Why is it So Low and How to Increase It?

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Shopping just got a whole lot easier with Afterpay (especially, since business owners can integrate it with different platforms). No more waiting weeks to get your items, no more stress about not having enough money in your account to cover the cost of your purchase, and no more feeling guilty about splurging. The convenience of Afterpay is that you can enjoy your purchase now, and pay it off over time. However, one of the biggest downsides is that your Afterpay limit may be much lower than you’d like. 

So why is it so low, and how can you increase it? Read on to find out.

What is Afterpay?

Afterpay is a form of payment where you can shop now and pay later. This allows you to buy items now and pay for them in four easy installments. It’s kind of like a layaway plan, but with less hassle as you don’t need to put down a deposit. 

In fact, with Afterpay, you don’t even need to provide a credit card to sign up. And if you don’t have a good credit score, you might not even be able to get approved for a credit card. With Afterpay, your credit score is not that significant. Afterpay is available in Australia, New Zealand, and the UK. You can use their app to shop online at retailers like Amazon, Myer, Etsy, and Wish. Afterpay is also available on some retail websites like Kogan and Catch. All you need to sign up is an email address and a phone number.

Why is my Afterpay limit low?

When you sign up for Afterpay, you agree to a small installment loan. Usually, it’s a percentage of your purchase amount every month for four months. For example, if you buy a $100 pair of shoes, you might be required to pay about $4 per month for four months ($12 total). For this reason, Afterpay is an unsecured loan, which means there is no collateral. Therefore, you will have a low credit limit. Some people are lucky enough to be able to get a $1,000 credit limit. But most people will be offered a much lower limit. If you have a limited credit history, low income, or don’t have a job, your Afterpay limit might be as low as $50. If you have a good credit score, have been using Afterpay for a while, and have a decent income, you could be offered a higher limit. But even then, your limit may be less than you’d like.

How does Afterpay determine your limit?

Afterpay doesn’t have a fixed formula for determining your credit limit. However, they use information from your credit report to assess how likely you are to repay them. If you have a low credit score or low income, there is a chance that you won’t be approved for Afterpay at all. However, if you are approved for Afterpay, the amount you are offered will depend on your credit report. Afterpay will also look at your income, previous credit history, and current debt load.

How to increase your Afterpay limit

If you have been using Afterpay for a while and have a good payment history, you might get lucky and get a higher credit limit. But most people have to increase their limit through a process of negotiation. You might not have any control over the factors that Afterpay uses to determine your initial credit limit. However, you can try to negotiate a higher limit by asking. And, sometimes, the request is granted. You can do a few things to increase your credit limit through negotiation. 

  • First, make sure you pay all your Afterpay installments on time. It is the most important thing you can do. 
  • After that, you can also try to discuss your situation with an Afterpay representative. Let them know you want to take out a larger loan, and ask for a higher limit. Be honest about your situation and express why you want a higher limit.

Tips to keep in mind when increasing your limit

Afterpay may not give you a higher credit limit even if you have been a good customer. But it is worth trying! Here are some tips that might help you increase your Afterpay limit.

  • If you are planning to request a higher limit, make sure you have enough money in your account to pay off your existing Afterpay debts.
  •  Avoid using your Afterpay account if you can. The more you use it, the higher your monthly payments will be.
  • Avoid using your Afterpay account on items like groceries and gas. These items will not help you build your credit score. A good credit score is important. But you don’t have to use your Afterpay account to build your credit score. You can do it without Afterpay.

Pros and cons of Afterpay

Like everything in the world, Afterpay has its advantages and drawbacks you might want to know about before you decide to use it. 

We’ll start with some pros that are as follows:

  • Having a low Afterpay credit limit doesn’t mean you’re doomed. It just means you have to be more careful about what you buy.
  • You can buy whatever you want and pay for it later.
  • Afterpay has a money-back guarantee in case you don’t receive the item you purchase.
  • If you are building your credit and have a low credit limit, you can use Afterpay to improve your credit score.
  • You can split a larger purchase into smaller payments.
  • You don’t need to provide a credit card.
  • If you have good credit or a higher income, you can apply for a larger Afterpay loan.

Now, some cons can be good to know:

  • With a low credit limit, you have a higher monthly repayment amount.
  • Your payment is due every month even if you don’t have the money to pay.
  • You have to wait longer to get what you buy.
  • The interest you pay is higher than traditional store-loaned credit.
  • Your credit score might be negatively affected if you don’t make your Afterpay payment on time. 

So, the rule of thumb with Afterpay can be to consider all the pros and cons before any commitment and use it responsibly as a payment plan for your purchases.

Curious about the maximum you can spend on Afterpay? Check it out here!


Afterpay is a useful service that allows you to buy items now and pay for them later. Many retailers use it, as it’s easy to implement and you can flawlessly connect Afterpay to accounting software. However, your credit limit may be much lower than you’d like. It depends on your situation and whether Afterpay thinks you are likely to repay them. You can increase your Afterpay limit by being honest with your representative, making sure you pay on time, and avoiding large purchases. With a higher credit limit, you will be able to make larger purchases and pay them off over time.

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