Flourish eMAG Apr 25 - Flipbook - Page 52
Easy to Access
Helps Manage Cash Flow
Unlike credit cards, BNPL providers don’t
require extensive credit checks. This makes it an
attractive option for young adults, students, and
those who might struggle to get a traditional line
of credit.
For those who budget well, BNPL can help spread
out payments so you’re not hit with a large
expense all at once. This can be especially useful
for things like emergency purchases (think car
repairs or medical bills).
Convenient & Seamless
BNPL is integrated into thousands of online
and in-store checkout systems, making it
incredibly easy to use. No need to 昀椀ll out lengthy
applications—you can often sign up in seconds.
THE CONS
OF BNPL:
THE HIDDEN
RISKS
Encourages Overspending
Because you’re not paying upfront, it’s easy to
lose track of how much you’re actually spending.
BNPL users are more likely to overspend and
impulse buy, which can quickly lead to 昀椀nancial
stress.
Late Fees Can Add Up Fast
If you miss a payment, you’ll get slapped with
a late fee, and multiple missed payments can
snowball into bigger 昀椀nancial problems. These
fees can sometimes be higher than credit card
interest rates!
Can Impact Your Credit Score
While some BNPL providers don’t report positive
repayment history, missed payments can be
recorded on your credit 昀椀le. This means that
BNPL can hurt your credit score if you’re not
careful.
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