Buy now, pay later (BNPL) services have surged in popularity, especially among online retailers, allowing consumers to make purchases without upfront payments. While these plans can provide immediate access to products, they function like loans, and it's crucial to understand the fine print before committing. Many BNPL services are offered by third-party financing companies, which may charge interest rates up to 30% and impose fees for late payments. To use BNPL wisely, shoppers should treat it as a loan and evaluate their financial situation to ensure they can manage the payment plan within their budget. It's essential to read the financing agreement thoroughly, understand the terms, and research both the retailer and the financing company. Although most BNPL options don't require a credit check, unpaid debts can negatively impact credit scores if they go to collections. By following these tips, consumers can make informed decisions and avoid unexpected financial pitfalls.
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