Liz Weston: How buy now, pay later loans could alter credit
3 years ago

Liz Weston: How buy now, pay later loans could alter credit

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Recently, the three major credit bureaus announced plans to incorporate “buy now, pay later” plans, a hugely popular type of point-of-sale financing that until now remained mostly outside the traditional credit ecosystem. Nearly 100 million people used a buy now, pay later option in the past year, says Liz Pagel, senior vice president of consumer lending for credit bureau TransUnion. Buy now, pay later loans also are largely unregulated and lack the consumer protections that cover credit card and debit purchases. But the leading credit scoring company, FICO, is still studying buy now, pay later data to see how well it predicts how people might handle other credit.

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History of this topic

Intrigued by buy-now, pay-later loans? Experts break down 6 pros and cons
2 weeks ago

Intrigued by buy-now, pay-later loans? Experts break down 6 pros and cons

NPR  

Intrigued by buy-now, pay-later loans? For people with no or limited credit history, or those who are worried about dinging their credit score, BNPL loans can be a convenient way to free up cash flow, deHaan says. Unlike credit cards and bank loans, BNPL loans don't often require a hard credit check, deHaan says. Sponsor Message Another significant factor for …

‘Buy now, pay later’ is more popular than ever. It can cost more than you think
3 months, 3 weeks ago

‘Buy now, pay later’ is more popular than ever. It can cost more than you think

LA Times  

More shoppers than ever are on track to use “buy now, pay later” plans this holiday season, as the ability to spread out payments looks attractive at a time when Americans still feel the lingering effects of inflation and already have record-high credit card debt. Buy now, pay later can be particularly appealing to consumers who have low credit scores …

‘Buy now, pay later’ is more popular than ever. It can cost more than you think
4 months ago

‘Buy now, pay later’ is more popular than ever. It can cost more than you think

Associated Press  

NEW YORK — More shoppers than ever are on track to use ‘buy now, pay later’ plans this holiday season, as the ability to spread out payments looks attractive at a time when Americans still feel the lingering effect of inflation and already have record-high credit card debt. Buy now, pay later can be particularly appealing to consumers who have …

Apple kills off its buy now, pay later service barely a year after launch
9 months, 1 week ago

Apple kills off its buy now, pay later service barely a year after launch

Associated Press  

NEW YORK — Apple is discontinuing its buy now, pay later service known as Apple Pay Later barely a year after its initial launch in the U.S., and will rely on companies who already dominate the industry like Affirm and Klarna. The service was Apple’s answer to the growing popularity of buy now, pay later services globally, and considered a …

What the new 'buy now, pay later' rule means for small businesses offering the service
9 months, 2 weeks ago

What the new 'buy now, pay later' rule means for small businesses offering the service

Associated Press  

NEW YORK — “Buy now, pay later” services are a popular way that shoppers pay for goods. If something goes wrong, consumers could blame the small business — even if they have nothing to do with the payment plan. AP AUDIO: What the new ‘buy now, pay later’ rule means for small businesses offering the service AP correspondent Mae Anderson …

Users of buy now, pay later services to undergo credit checks under proposed new law
9 months, 3 weeks ago

Users of buy now, pay later services to undergo credit checks under proposed new law

ABC  

In short: Proposed new legislation will require buy now, pay later services to do basic credit checks on new customers to make sure they can afford the service. Proposed new legislation will require buy now, pay later services to do basic credit checks on new customers to make sure they can afford the service. Users of buy now, pay later …

Buy now, pay later companies must adhere to credit card rules
10 months ago

Buy now, pay later companies must adhere to credit card rules

LA Times  

The Consumer Financial Protection Bureau, led by Director Rohit Chopra, says in a new rule that buy now, pay later lenders must provide the same protections and rights as credit card providers. Buy now, pay later companies must provide consumers with the same legal rights and protections as credit card lenders do, the Consumer Financial Protection Bureau said in a …

Buy now, pay later companies must adhere to credit card standards, consumer agency says
10 months ago

Buy now, pay later companies must adhere to credit card standards, consumer agency says

Associated Press  

NEW YORK — Buy now, pay later companies must provide consumers with the same legal rights and protections as credit card lenders do, the Consumer Financial Protection Bureau said Wednesday in a new rule. “Regardless of whether a shopper swipes a credit card or uses Buy Now, Pay Later, they are entitled to important consumer protections under longstanding laws and …

Experts’ warning for customers using ‘buy now, pay later’ credit
11 months, 2 weeks ago

Experts’ warning for customers using ‘buy now, pay later’ credit

The Independent  

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Many customers who have become reliant on ‘buy now, pay …

Klarna CEO Siemiatkowski says buy now, pay later is used by shoppers who otherwise avoid credit
1 year, 3 months ago

Klarna CEO Siemiatkowski says buy now, pay later is used by shoppers who otherwise avoid credit

Associated Press  

NEW YORK — Sebastian Siemiatkowski is a co-founder and CEO of Klarna, the Sweden-based company that’s one of the world’s biggest providers of buy now, pay later services to customers. Buy now, pay later has become an increasingly popular option for consumers for purchases: its usage is up 10-fold since the pandemic and U.S. regulators see it as potentially a …

Klarna CEO Siemiatkowski says buy now, pay later is used by shoppers who otherwise avoid credit
1 year, 3 months ago

Klarna CEO Siemiatkowski says buy now, pay later is used by shoppers who otherwise avoid credit

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Sebastian Siemiatkowski is a co-founder …

Want to buy now, pay later this holiday season? Ask yourself these 5 questions first
1 year, 4 months ago

Want to buy now, pay later this holiday season? Ask yourself these 5 questions first

LA Times  

“Buy now, pay later” payment plans are a popular financing option, especially around the holiday season. “Buy now, pay later,” a type of payment plan that divides the total cost of your purchase into smaller installments, is offered at most major retailers, including Walmart, Target and Amazon. The short application, immediate approval decision and no hard credit check can make …

More Americans are expected to ‘buy now, pay later’ for the holidays. Analysts see a growing risk
1 year, 4 months ago

More Americans are expected to ‘buy now, pay later’ for the holidays. Analysts see a growing risk

Associated Press  

NEW YORK — Consumers are expected to use “buy now, pay later” payment plans heavily this holiday season, a forecast that bodes well for retailers but that has credit experts again sounding alarm bells. Vivek Pandya, lead analyst for Adobe Digital Insights, said that “rising interest rates, inflation in food prices, and resuming student loan repayments” have increased costs for …

Fifth of buy now, pay later customers ‘have used the credit to fund essentials’
1 year, 6 months ago

Fifth of buy now, pay later customers ‘have used the credit to fund essentials’

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. MaPS is an arm’s-length body …

Buy now, pay later services will be considered credit products by the end of the year. Here's how it will work
1 year, 10 months ago

Buy now, pay later services will be considered credit products by the end of the year. Here's how it will work

ABC  

Australia has joined the UK in regulating the buy now, pay later industry, under sweeping changes announced by the Financial Services minister on Monday. Financial Services Minister Stephen Jones told a borrowing and lending conference in Sydney that buy now, pay later "looks like credit, it acts like credit, it carries the risk of credit" and therefore the services would …

Should you buy now, pay later for your wedding?
1 year, 11 months ago

Should you buy now, pay later for your wedding?

LA Times  

“Buy now, pay later” plans let you break up your wedding purchases into smaller installments that you pay over a series of weeks or months. Couples may turn to increasingly popular “ buy now, pay later ” payment plans to ease the burden. “It’s a way to pay in bite-sized amounts that fits into how couples are used to budgeting.” …

The downsides of the ‘buy now, pay later’ trend
1 year, 11 months ago

The downsides of the ‘buy now, pay later’ trend

LA Times  

Starting this week, Apple is rolling out its version of “buy now, pay later.” Using a short-term loan to finance a small or medium purchase — Apple says Pay Later loans will be available in amounts from $50 to $1,000 — is “sold like a no-brainer” to consumers, personal finance expert Carmen Perez said. And there’s still negative consequences for …

Apple rolls out buy now, pay later service, with guardrails
1 year, 11 months ago

Apple rolls out buy now, pay later service, with guardrails

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Branded as “interest-free loans,” buy …

Buy now pay later to impact credit scores of millions
2 years, 2 months ago

Buy now pay later to impact credit scores of millions

The Telegraph  

Buy now, pay later payments are to impact the credit scores of millions of people for the first time, The Telegraph can reveal. Zilch, a British buy now pay later business with three million users, is to start sharing data on customers' balances and repayments with credit rating agencies in a move that could see people’s ability to borrow restricted …

Buy Now, Pay Later: What is BNPL? Popular E-commerce Payment Option Explained
2 years, 3 months ago

Buy Now, Pay Later: What is BNPL? Popular E-commerce Payment Option Explained

News 18  

Buy now, pay later is a fast-growing financial model most prominently visible on e-commerce and quick commerce websites. Apart from deferred payment, several BNPL service providers also allow for payment in equated monthly instalments once the interest-free deferred repayment tenure ends. The major BNPL brands in India include LazyPay, Simpl, Amazon Pay Later, Flipkart Pay Later, and ZestMoney. In case …

In a year marked by inflation, 'buy now, pay later' is the hottest holiday trend
2 years, 3 months ago

In a year marked by inflation, 'buy now, pay later' is the hottest holiday trend

NPR  

In a year marked by inflation, 'buy now, pay later' is the hottest holiday trend Enlarge this image toggle caption Peter Dazeley/Getty Images Peter Dazeley/Getty Images Buy something now, pay later: It's changing how we shop. "With 'buy now, pay later,' I feel more — I don't know if responsible — but I feel more on top of it," says …

The problems with using buy now, pay later to fund travel
2 years, 3 months ago

The problems with using buy now, pay later to fund travel

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Companies like American Airlines, United Airlines and vacation rental …

As ‘buy now, pay later’ plans grow, so do delinquencies
2 years, 6 months ago

As ‘buy now, pay later’ plans grow, so do delinquencies

Associated Press  

NEW YORK — Americans have grown fond of “buy now, pay later” services, but the “pay later” part is becoming increasingly difficult for some borrowers. Given those features, consumer advocates and financial advisors initially had seen buy now, pay later plans as a potentially healthier form of consumer debt if used correctly. “If these buy now, pay later plans are …

EXPLAINER: What to know about ‘buy now, pay later’
2 years, 6 months ago

EXPLAINER: What to know about ‘buy now, pay later’

Associated Press  

NEW YORK — Since the start of the pandemic, the option to “buy now, pay later” has skyrocketed in popularity, especially among young and low-income consumers who may not have ready access to traditional credit. Branded as “interest-free loans,” buy now, pay later services require you to download an app, link a bank account or debit or credit card, and …

As 'buy now, pay later' plans grow, so do delinquencies
2 years, 6 months ago

As 'buy now, pay later' plans grow, so do delinquencies

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Given those features, consumer advocates and financial advisors initially …

Martin Lewis hits out at ‘painfully slow’ changes to buy now, pay later rules
2 years, 9 months ago

Martin Lewis hits out at ‘painfully slow’ changes to buy now, pay later rules

The Independent  

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please try again later {{ /verifyErrors }} Consumer expert Martin …

What to know before your business adds buy now, pay later
3 years ago

What to know before your business adds buy now, pay later

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy “Buy now, pay later” is …

NatWest will enter the buy now, pay later market this summer
3 years ago

NatWest will enter the buy now, pay later market this summer

The Independent  

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy NatWest plans to enter the buy now, pay later market, …

Beware! Buy now pay later can impact your credit score
3 years ago

Beware! Buy now pay later can impact your credit score

Live Mint  

When you buy something on digital marketplace, or use the post-paid services of cab aggregator, the service will naturally look tempting at the outset. Cab aggregator app Ola-run ‘Ola Money’ enables customers to pay for Ola rides and even pay for a range of other services including cinema, movies, shopping, medicines, among others. Amazon also offers a similar facility known …

Buy now, pay later firms making contract terms fairer and easier to understand
3 years, 1 month ago

Buy now, pay later firms making contract terms fairer and easier to understand

The Independent  

Sign up to our free money newsletter for investment analysis and expert advice to help you build wealth Sign up to our free money email for help building your wealth Sign up to our free money email for help building your wealth SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our …

Debt charity issues warning over Buy Now, Pay Later
3 years, 2 months ago

Debt charity issues warning over Buy Now, Pay Later

The Independent  

Stay ahead of the curve with our weekly guide to the latest trends, fashion, relationships and more Stay ahead of the curve with our weekly guide to the latest trends, fashion, relationships and more Stay ahead of the curve with our weekly guide to the latest trends, fashion, relationships and more SIGN UP I would like to be emailed about …

What is buy now pay later (BNPL)?
3 years, 3 months ago

What is buy now pay later (BNPL)?

Live Mint  

Buy now pay later is a short-term credit facility extended either by banks or online merchants through their tie ups with banks or NBFCs. These facilities usually allow customers to pay for their purchases later as they buy goods on credit for a period anywhere between 15 days to 365 days. HDFC Bank offers pay later option, known as FlexiPay, …

‘Buy now, pay later’ catches on just in time for holidays
3 years, 3 months ago

‘Buy now, pay later’ catches on just in time for holidays

Associated Press  

SAN FRANCISCO — As Americans shop for the holidays, they will likely see a swarm of offers to get their gifts now but pay for them later in fixed monthly installments. One major credit card company says roughly six out of every 10 of its U.S. customers started a buy now, pay later program for the first time this year, …

'Buy now, pay later' catches on just in time for holidays
3 years, 3 months ago

'Buy now, pay later' catches on just in time for holidays

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. One major credit card company says roughly six out …

Buy now, pay later services such as Afterpay and Zip can become a debt trap. Here's how not to get caught
3 years, 4 months ago

Buy now, pay later services such as Afterpay and Zip can become a debt trap. Here's how not to get caught

ABC  

Have you racked up a bit of debt with all of that online shopping during lockdown? ASIC's Moneysmart website says you should make sure you include your buy now, pay later payments in your budget, and link any accounts you have to a debit card instead of a credit card so you don't get hit with credit interest. "Remember the …

Crackdown on buy now pay later sector looms as consultation is launched
3 years, 5 months ago

Crackdown on buy now pay later sector looms as consultation is launched

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Buy now pay later borrowing can be like quicksand …

Citizens Advice reveals dark truth about buy now, pay later
3 years, 6 months ago

Citizens Advice reveals dark truth about buy now, pay later

The Independent  

Looking at the latest Citizens Advice research on the subject of the booming buy now, pay later industry, I was struck by a sudden sense of deja vu. BNPL operators don’t usually charge any interest at all, at least not on their plain vanilla products, which let people pay after 30 days or via a small number of monthly instalments. …

Buy now pay later and its financial inclusion scope
3 years, 6 months ago

Buy now pay later and its financial inclusion scope

Live Mint  

US fintech giant Square recently announced an all-stock acquisition of ‘buy now pay later’ leader Afterpay. Launched in 2015 by Afterpay in Australia, BNPL is a way for users to pay later for their e-commerce buys with limited credit checks and a slick payment experience. PayPal is a notable incumbent which launched a pay later product Pay in 4, while …

How to make the best of Buy Now, Pay Later
3 years, 7 months ago

How to make the best of Buy Now, Pay Later

Live Mint  

What are the various options you have to pay when you purchase a product or service? It means that you get to make a purchase right now, but are allowed to pay later without using a credit card. Some, such as LazyPay, have tie-ups with more than 300 merchant networks, and allow you to make payments upfront to merchants with …

Over-long terms and conditions prompt more fears over ‘buy now pay later’ debt
3 years, 11 months ago

Over-long terms and conditions prompt more fears over ‘buy now pay later’ debt

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. However, a study by the comparison website NerdWallet showed …

Klarna: How the changes to buy now, pay later rules will affect you
4 years, 1 month ago

Klarna: How the changes to buy now, pay later rules will affect you

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Buy now, pay later firms …

One in five consumers using buy now, pay later miss payments, but ASIC stops short of imposing new regulation on the sector
4 years, 4 months ago

One in five consumers using buy now, pay later miss payments, but ASIC stops short of imposing new regulation on the sector

ABC  

Australia's corporate watchdog says some consumers are having to cut back on essentials such as meals because of debt they have racked up from using buy now, pay later, warning one in five consumers are missing payments. Key points: ASIC has stopped short of recommending that buy now, pay later players be regulated in the same way as credit card …

'Buy now, pay later' stars like Afterpay, Zip don't need regulation, Senate inquiry into fintech says
4 years, 6 months ago

'Buy now, pay later' stars like Afterpay, Zip don't need regulation, Senate inquiry into fintech says

ABC  

Consumers don't need to have legal protections when they use "buy now, pay later" services like Afterpay and Zip, because those companies can just self-regulate, according to a Senate inquiry into fintech. Key points: A Senate inquiry has handed down an interim report into the fintech sector, looking at "buy now, pay later" operators like Afterpay and Zip Despite calls …

‘Buy Now, Pay Later’ Is Popular During The Pandemic, But Is It Safe?
4 years, 7 months ago

‘Buy Now, Pay Later’ Is Popular During The Pandemic, But Is It Safe?

Huff Post  

Buy now, pay later: If you’re shopping online with a tight budget, it seems like an offer that’s hard to refuse. The Dangers Of BNP Though BNPL companies market themselves as “interest-free,” that can depend on your payment schedule and credit score, Anastasio said. Rossman said that even though your score could suffer if you miss payments, most of these …

Australians ditch credit cards as millennials turn to 'buy now, pay later' players like Afterpay, Zip
4 years, 7 months ago

Australians ditch credit cards as millennials turn to 'buy now, pay later' players like Afterpay, Zip

ABC  

A global pandemic and the nation's first recession in 29 years haven't stopped the boom in 'buy now, pay later' services. Key points: As 'buy now, pay later' services grow in use during the COVID-19 pandemic, credit card use is in decline Consumer advocates say 'buy now, pay later' should be regulated like credit card companies are, but the fin …

Afterpay's late fees make up 24pc of its income; ASIC recommends buy now, pay later law reform
6 years, 7 months ago

Afterpay's late fees make up 24pc of its income; ASIC recommends buy now, pay later law reform

ABC  

The digital payment app Afterpay, popular amongst millennials, is facing criticisms that it causes "financial stress" for vulnerable consumers. "Our financial counsellors report that we are receiving increasing numbers of calls from people with buy-now-pay-later debts, including Afterpay," said Katherine Temple, the Consumer Action Law Centre's senior policy officer. ASIC's regulatory loophole Also released on Thursday was a report by …

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