 TITLE: Layaway or Credit: Which Is Best? CONTENT: Can Layaway Impact Your Credit Score?\n-------------------------------------\nLayaway plans have zero impact on your credit scores. The store does not check your credit report to see if you qualify, so a hard inquiry won't be posted on your credit report, and a layaway agreement won't show up as positive payment history.\nAdditionally, layaway plans do not show up as any kind of debt on your credit report. Late payments won't hurt your credit scores, either. Since the amount won't show up on your credit report, your credit utilization ratio (the amount you owe compared with the amount you can charge) won't change. For these reasons, layaway plans have a neutral effect on your credit.\nOne downside to layaway is that your on-time payments won't improve your credit score. Since stores do not report your layaway payment history to the three major credit bureaus (Experian, TransUnion and Equifax), don't expect your credit score to change. END