According to the latest report from Juniper Research, global consumer spending through buy now, pay later (BNPL) services is expected to reach $437 billion by 2027. This represents a significant 290% increase compared to 2022. While BNPL services have become popular among consumers, there are also risks associated with them that buyers need to be aware of.
BNPL services allow customers to purchase items and pay for them later in equal installments over an agreed period. While these services are relatively easy to get approved for and have minimal impact on credit scores, they also come with hidden risks that can have significant financial repercussions on buyers.
One of the main risks associated with BNPL services is high-interest rates and late fees. While some providers do not charge any interest or fees as long as payments are made on time, failing to repay on time can result in interest rates and late fees that can add up significantly. Additionally, some BNPL providers have hidden clauses imposing interest rates and fees upfront.
Another potential risk is the impact on credit scores. While most BNPL companies only perform a soft check to approve applications, some conduct a hard check that can negatively impact credit scores. Furthermore, some BNPL providers may report credit activity to one or more major credit bureaus, further affecting credit profiles. In their online reviews, customers indicate competent buy now pay later companies support, like one provided by Affirm customer service, flexible payment plans, and no hidden fees or gimmicks, which makes the service providers reputable
Problems with returns and refunds are also a concern for BNPL users. It can be challenging to get a refund if there are issues with the item purchased, and it may take a long time to receive the money back. Customers may also have to continue making repayments on the item while waiting for a refund.
To avoid these risks, consumers are encouraged to conduct thorough research on prospective sellers and BNPL companies to determine their reputability. They should check overall BNPL providers’ ratings and consumer reviews regarding customer service, hidden interests and fees, return and refund policies, and more. It is also important to sign up with a BNPL company that only performs soft credit checks and make installment payments on time to avoid high-interest rates and being reported to credit bureaus.
Buy now, pay later services offer a convenient and affordable way to purchase items. However, buyers should also be aware of the risks associated with these services and take necessary precautions to avoid financial repercussions. By conducting thorough research and making payments on time, consumers can enjoy the benefits of BNPL services without the potential risks.
Contact:
Consumer Opinion LLC
1930 Village Center Circle #3-6953
Las Vegas, NV 89134, United States
Source: Story.KISSPR.com
Release ID: 598686