The Risks of Buy Now, Pay Later Services
High Fees and Credit Score Harm Reasons for Caution
Consumers enjoying the convenience of buy now, pay later (BNPL) products such as AfterPay and Klarna should be aware of potential risks, consumer advocates warn. While these services can be helpful, they can also hurt a consumer’s credit score and sometimes carry high fees.
Lauren Saunders of the National Consumer Law Center (NCLC) says of these products:
“Buy-now-pay-later products, if affordable and truly free to the…