Afterpay Is a Terrible Idea. Here’s What You Should Do Instead

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If you’re relying on “buy now, pay later” (BNPL) services like Afterpay to cover big expenses, you’re quietly losing out on money — and the chance to grow your credit score.

While Afterpay can be a decent last resort to cover immediate expenses, there are a few alternatives to rely on before you get to that point. Here’s why Afterpay’s not your best option — and what to do instead.

Afterpay is designed to make you spend more

Afterpay might seem too good to be true: Split your big purchase into multiple easy payments with no interest, no credit check, and no big upfront hit.

But here’s what Afterpay doesn’t lead with — merchants who offer it see a 58% higher average order value, according to the company’s own data. That’s not a coincidence.

The “multiple installments” framing makes everything feel more affordable than it is. That means you’re more likely to buy something you shouldn’t, or simply spend more than you planned. Not great.

On-time payments don’t build credit — but missed ones can hurt it

Unlike a credit card, your Afterpay payments aren’t reported to the credit bureaus. That means even if you pay on time, every time, it does nothing for your score.

If you miss a payment, though, that can show up — damaging your credit without ever building it up. It’s basically the worst of both worlds.

The better move: Save in installments, then buy

Let’s flip the math: If you can afford four payments of $50 over six weeks, you can afford to save $50 every week, and buy the thing outright once you’ve saved up.

That might not seem like a big difference — but with the right savings account and credit card, it can mean a lot.

Right now, many online savings accounts are offering 4.00%+ APY or higher. That means you can earn real interest on your money while you save. Then, when you’re ready, make sure to put the purchase on a rewards credit card to earn even more.

Here’s your anti-Afterpay checklist:

• Save here: Put your money in a top high-yield savings account, currently offering 4.00% APY or higher.
• Pay with this: Land a top rewards credit card with great bonus categories — or even a flat-rate cash back card like the Wells Fargo Active Cash® Card (earns 2% cash rewards on purchases).
• Enjoy your credit score boost: Unlike Afterpay, on-time payments on credit cards are reported to all three credit bureaus. That means you’re boosting your long-term financial profile, too.

That combination does everything Afterpay promises — spreading costs over time — without the temptation to overspend and the downsides to your credit score.

Ready to get started? Check out our list of the best rewards credit cards out now and find the one that’s right for you.

If you need immediate help, a 0% intro APR card is a better option

Some big expenses genuinely can’t wait — a car repair, a broken appliance, a medical emergency.

If that’s where you’re at, a 0% intro APR credit card is almost always a better option than BNPL. Here’s why:

• They have longer runways. Afterpay gives you six weeks to pay. The best 0% intro APR cards give you 21 months to pay off your balance, interest-free.
• They build your credit. Again, with 0% intro APR credit cards, on-time payments get reported to the bureaus. You’re financing a purchase and strengthening your credit profile at the same time.
• You can earn rewards. Many 0% intro APR cards still earn cash back or points on purchases. Afterpay earns you nothing.
• Wider acceptance. With a 0% intro APR card, you’re not limited to merchants that accept BNPL programs. Just use your card anywhere credit cards are accepted.

The catch here is that you need decent credit to qualify. You’ll also have to be disciplined enough to pay off your balance before the intro period ends. Otherwise, you’ll owe interest on the remaining amount.

If you can clear those hurdles, though, it’s a much better tool than Afterpay for any purchase you can’t cover immediately.

Want a better way to save on big purchases? Check out our list of the best 0% intro APR credit cards available now.

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