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EASY WAY TO GO BROKE?: 4 DANGERS OF BUY NOW, PAY LATER APPS

Paying for items upfront can be tough if you are financially constrained. Buy now, pay later apps promise a flexible plan with minimal strings attached.

Sounds like a terrific way to manage cash flow, right? Beware – these apps pose some risks.

Problematic Dangers of BNPL Services

By their very nature, pay later services make it easier for you to spend money. For example, loan apps make qualifying easy and often have a spending limit between $50 and $1,000.

It’s Easy to Overspend

BNPL apps sell themselves as the perfect alternative to credit cards. Unfortunately, most buy now, pay later companies only perform a soft credit check.

They Can Harm Your Credit

Buy now, pay later apps market themselves as a fee-free way to get monthly financing on a purchase. But, of course, that is only true if you don’t miss payments.

Fees and More Fees

Many services charge late fees once you miss a payment. 

Pay later services are a fantastic way to get an interest-free short-term loan. While true if you have a good payment history, that is only if you don’t miss a payment.

Exorbitant Interest Rates

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