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Store Cards vs. BNPL: What Shoppers Prefer This Holiday Season

Store Cards vs. BNPL: What Shoppers Prefer This Holiday Season

As the holiday shopping season approaches, a recent report from LendingTree reveals that 58% of surveyed shoppers prefer retail store credit cards over buy now, pay later (BNPL) plans. This preference persists despite the average interest rates for store cards soaring to over 30%. The survey, which included 2,040 U.S. adults, indicates that while younger generations like Gen Z and millennials lean towards BNPL options, older generations show a stronger inclination towards store cards. Retail store cards offer long-term, revolving credit often tied to loyalty programs, while BNPL loans break down purchases into installment payments. However, both options come with potential pitfalls, including high-interest rates and the risk of accumulating debt. Experts urge shoppers to consider the total cost of ownership and the implications of carrying debt, emphasizing the importance of timely payments to avoid penalties. As banks tighten lending standards, understanding these financial tools is crucial for holiday spending.

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