![]() ![]() The terms of the providers often differ, with some charging late fees or reporting to credit bureaus, while others don’t. Those penalties may come as a surprise to some consumers, who may lose track of their payments or use more than one BNPL plan. One out of three in that group said their credit score declined significantly. The Credit Karma survey found that 72 percent of those who missed a payment said they thought their credit score dropped as a result. Late payments can result in fees or even put you on debt collection lists depending on the terms of the BNPL provider. 22 percent of Gen Xers and just 10 percent of baby boomers. Of those, younger shoppers were far more likely to fall behind, with more than half of Gen Zers and millennials reporting they missed a payment vs. Consumers love it, and it’s likely here to stay,” says Matt Schulz, chief industry analyst at Lending Tree.īut there are financial risks to choosing a BNPL plan, especially if you miss a payment.Īccording to a recent study by Credit Karma, 34 percent of consumers who used BNPL services fell behind on one or more payments. ![]() “Those are remarkable numbers for a relatively new product. Of those who opted for such financing, 62 percent said they had done so five times or more, and 81 percent said they would do so again. But banks, credit card issuers, and payment services, including American Express and PayPal, offer their own flexible payment plans.Ībout one-third of shoppers have used buy now pay later (BNPL) financing, according to a recent survey by Lending Tree, an online lending marketplace. To provide these options, many merchants have teamed with financial technology companies such as Affirm and Klarna. The typical installment arrangement might let you put down 25 percent of the purchase price, then make three equal payments over six weeks. ![]() The payment plans are offered by a growing number of retailers, including Amazon, Shopify, and Walmart, both online and in stores. As the holiday shopping season shifts into overdrive, more and more consumers are opting for buy now, pay later plans, which let you spread out your bill payments over additional weeks, usually with no interest or fees. ![]()
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