As a consumer, it is important to pay your instalments when you use buy now pay later (BNPL) for several reasons. First and foremost, failing to pay your instalments can damage your credit score. When you make timely payments on your BNPL account, it can help to improve your credit score. However, if you fail to make your payments on time, it can have the opposite effect and negatively impact your credit score. This can make it more difficult for you to get approved for traditional forms of credit in the future, such as a credit card or a loan.
Another reason why it is important to pay your instalments when you use BNPL is that it can save you money. Many BNPL providers offer interest-free financing, which means that you won’t have to pay any additional fees or charges on your purchases. However, if you fail to make your payments on time, you may be charged late fees or other penalties, which can add to the cost of your purchases.
Additionally, paying your instalments on time can help you to avoid additional fees and charges. If you fail to make your payments on time, your BNPL provider may charge you late fees or other penalties. These fees can add to the overall cost of your purchases, making them more expensive than they would have been if you had paid on time.
Furthermore, paying your instalments on time can help you to maintain a good relationship with your BNPL provider. If you have a history of making timely payments, your BNPL provider may be more likely to offer you additional financing options or other benefits in the future. However, if you have a history of late or missed payments, your BNPL provider may be less likely to offer you these benefits.
Overall, as a consumer, it is important to pay your instalments when you use BNPL. Not only can failing to pay your instalments damage your credit score and cost you money, but it can also negatively impact your relationship with your BNPL provider. By making timely payments on your BNPL account, you can avoid these potential drawbacks and take advantage of the many benefits that BNPL has to offer.
Paying your BNPL instalments on time is like the holiday version of ‘no peeking’ on gifts. If you peek and don’t pay on time, you’ll be left with an unpleasant surprise.
Think of paying your BNPL instalments on time as the holiday version of being on the nice list. You don’t want to end up on the naughty list with late fees and penalties.