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If you get offered BNPL with no interest or extra fees, isn't it a no-brainer to take it, even when you could afford to just pay the whole cost up front?
by josephcsible 4y ago
If you get offered BNPL with no interest or extra fees, isn't it a no-brainer to take it, even when you could afford to just pay the whole cost up front?
- Jochim 4y agoNot sure about the US but in the UK it's now supposed to show up on your credit report. You also need to be the type of person that keeps on top of your finances. The main trap for inexperienced/impulsive people is getting locked into paying for more than they can afford. Without BNPL they might look at their balance and decide not to buy the item. BNPL introduces a different type of calculation where you now "it's only $5/mo", and need the experience to consider "how many more $5/mo payments do I have". The other problem is people with a volatile monthly income. They might be fine paying $50/month for a few months but due to their industry or changes in their financial situation they're now stuck with a commitment they can't afford and otherwise wouldn't have had without BNPL.
- amerkhalid 4y agoPerhaps also consider any points and other freebies like extended warranties that when using credit cards.
- jlarocco 4y agoTechnically you're right, but is it worth the trouble for groceries?
- paxys 4y agoYou are missing out on credit card rewards. You don't get the consumer protections (disputes, extended warranties and more) offered by credit cards. It doesn't help build your credit history. And even if you think you can make all payments on time, if you happen to miss a single one then you are going to be hit by like 30% interest and other fees.
- josephcsible 4y ago> It doesn't help build your credit history. Will missing payments of it hurt your credit history? If so, why is such one-sided credit reporting legal?
- paxys 4y agoYes, because they will send the debt to collections