While many BNPL companies don’t charge interest, most do charge late fees if you miss a payment. Be sure to research whether or not a BNPL company reports to credit bureaus before using their service. If you make a late payment, and the BNPL company reports your late payment to a credit reporting company, this can harm your credit history. While most BNPL companies don’t currently report to consumer reporting companies, there are some that do. If getting or building credit is your goal, use our resources to better understand how to improve your credit record over time. It’s important to know that most BNPL credit is not reported to the credit bureaus and won’t impact your credit score. Some consumers might assume that BNPL credit helps them build their credit history. This can help you establish credit or build a credit score or hurt your credit profile if you make late payments or use too much of your available credit. Your repayment behavior on many types of loans and credit products is reported to consumer reporting companies. Contact a qualified financial advisor if you need help creating a budget or check out the CFPB’s resources. ![]() Just because you qualify for BNPL or any other credit product, doesn’t mean you should use it. Because you can qualify for BNPL without passing a hard credit inquiry, make sure you have a good sense of your finances and whether the payments will fit within your budget. Don’t overextend your financesīNPL can be a tempting payment option for many consumers because it makes it easy to purchase something today and pay for it later. ![]()
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