While doing your Christmas shopping, you’ve no doubt run into online retailers that are happy to offer a “buy now, pay later” option for your purchases. Just because it’s available to you doesn’t mean you should do it. Here are a few expert tips:
- Don’t use it unless you’re sure you can pay it off. Being approved doesn’t indicate you have the credit worthiness…it just means they’re “willing to take your word for it”
- Avoid taking out multiple BNPL loans simultaneously and risk overloading
- Don’t give in to the trap of “impulse buying” and using BNPL to make the purchase
- Don’t use BNPL if it’s an item that might require more purchase protection. If it arrives busted, you’re still on the hook for it while you deal with getting a repair or a replacement
Source: NPR