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Services like Afterpay, Klarna, and Affirm have made it easier than ever to divvy up a big purchase — all to make you feel like you’re spending less than you are.
But are they actually a smart way to buy?
“Buy now, pay later” (BNPL) usage has exploded in the last few years. An estimated 90 million Americans used a BNPL service in 2025, according to Empower. Here’s a spoiler alert, though: the people profiting most from it aren’t the shoppers.
Before you rely on BNPL, here’s what you should know.
It can help — and hurt — your credit score
For years, one of the big knocks on BNPL was that it was a financial dead end. Payments weren’t reported to the major credit bureaus, so responsible use earned you nothing in terms of your credit score.
That’s recently changed. The most recent FICO® Score models incorporate BNPL data into credit scores, which means your score could improve if you consistently repay BNPL loans on time.
On the other hand, though, missed or late payments can lower your score, just like traditional credit cards or loans.
Also, the upside is modest. FICO’s simulations found that for most consumers, having a BNPL account would result in a change of around 10 points. But the downside, if you fall behind, can be very real.
BNPL is designed to make you spend more
This isn’t a conspiracy theory — it’s actually part of the business model. Merchants pay BNPL providers a fee because those providers help them sell more. And it’s become a boon for merchants looking to increase sales.
Psychologically, it makes sense: Spending $50 four times over feels smarter than spending $200 once. In reality, of course, it amounts to the same thing.
That means BNPL can encourage people to buy things they probably wouldn’t have bought otherwise. In fact, more than 25% of Americans say they regret using BNPL, according to Motley Fool Money research.
If you need to spread payments out, get a 0% intro APR card instead
If you genuinely need to make a big purchase, for whatever reason, a 0% intro APR credit card is almost always a better way to do it.
That’s because top 0% intro APR cards offer up to 21 months of interest-free payments, compared to the six weeks you typically get with a BNPL plan. That’s not a small difference.
Beyond the longer runway, a 0% intro APR card can build your credit more substantially. It might even come with a sign-up bonus, earning rates, and real consumer protections — like the ability to dispute charges, and cover you in case of fraud.
The catch: You need a decent credit score to qualify. Most 0% intro APR offers are geared toward good-to-excellent credit, so if your score isn’t there yet, that option may not be on the table.
When BNPL actually makes sense
There is at least one situation where leaning on BNPL makes sense: You genuinely need something now, you don’t have the cash, and a 0% intro APR credit card isn’t an option.
I’m not talking about concert tickets here — I’m talking something like a medical expense or a necessary home repair. These are real situations where BNPL can bridge a gap without the high interest rates of a personal loan or credit card.
The problem is that most BNPL purchases aren’t that. That means that in most cases, a 0% intro APR credit card — or just good old-fashioned saving — are the way to go.
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