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![]() ![]() This means that once the regulations come into effect, you can expect a hard credit check when using Buy Now, Pay Later, as you would with any other credit application. It states that the regulations aim to protect millions of consumers and hold Buy Now, Pay Later to the same standards as other forms of credit. On June 22nd, 2022, the government released its plans to regulate the Buy Now, Pay Later market. However, this will be changing very soon. The first thing to note is that they won’t currently give you a hard credit check if you sign up for a BNPL agreement. Does Buy Now Pay Later affect your credit score? Global Banking Finance reported a 39% increase in BNPL payments in the UK in 2019, and they expect that to double by 2023. It’s a growing market and could soon become the norm. The BNPL payment option currently is only available through a third party such as PayPal, Clearpay, Laybuy, and Klarna – and there are more and more BNPL companies popping up as the trend takes off! You need to make an account with one of these companies and select that payment method when shopping online. ![]() However, these big brands don’t offer a credit scheme themselves. It’s become the norm to see BNPL options on big websites like ASOS, Pandora, M.A.C, Wayfair, and Shein – the list goes on and on. Another perk is that they offer interest-free repayments, but be careful because if you’re late with payments, they may start charging interest, which could be very high! The short time frame and the fact that it’s so accessible means it’s available to almost anyone with just a couple of clicks of a button. One of the main reasons it is so popular is because it doesn’t feel like borrowing money. More and more companies are offering BNPL – you could call it the new trend in credit. Help Managing Buy Now Pay Later Debts So, who offers BNPL as a payment option? Each Buy Now Pay Later option works differently, so you should always read the terms and conditions closely. Then you pay back the provider either in instalments or one sum before the 30 days are up. Simply put, the Buy Now Pay Later provider pays for your desired products. It can be particularly tempting when you’re waiting for payday – want that new game, dress, or pair of shoes, but payday is two weeks away? No problem with Buy Now, Pay Later. First off, what is Buy Now, Pay Later or BNPL?īNPL is a payment plan that allows you to either spread the cost of purchases over three payments or buy something and pay within 30 days. Buy Now, Pay Later is a loan, and it’s always important to remember that. Buying something and not paying for it straight away is almost like getting it for free, right? Maybe for the first month, but not when the payment is due. ![]()
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