Risks of Buy Now, Pay Later

BNPL services allow for purchases to be spread into four installments, requiring a down payment and auto-repayment. Popular apps include Affirm, Afterpay, and Klarna. Misuse can cause financial stress. 

They Can Harm Your Credit

Missed payments on BNPL apps hurt credit score and lead to collections, impacting finances.

1

It's Easy to Overspend

Pay later services ease spending, but can lead to overspending and negatively impact low-income households.

2

Fees and More Fee

BNPL apps offer fee-free financing unless payments are missed, resulting in late fees, which can add up.

3

Exorbitant Interest Rate

Missing payments on pay later services may lead to interest penalties, including deferred interest and fees.

4

There's Limited Regulation

BNPL services are popular but lack regulation, leaving users vulnerable to hidden fees and high interest rates.

5

You May Continue a Cycle of Debt

Using BNPL apps for unnecessary purchases can lead to debt, late fees, and lower credit scores.

6

SWIPE UP TO LEARN MORE!