You can tell by its name: Buy Now, Pay Later. This scheme means that you can buy something without paying the price right now, instead, you only have to pay it within a period of time, usually 30 days around. Or you can choose instalment. Providers who offer this method of paying are Klarna, Clearpay, Paypal, Laybuy and Amazon.

How does it work?

When you apply for a Buy Now Pay Later method of payment, you’ll be offered a period of time to complete the payment. If you repay the price on time within the delay period, you don’t have to pay any interest. Because these periods are generally interest-free. However, if you don’t repay on time, you will be charged with interest. The longer you delayed, higher the interest rate will be. For example, 39.9% APR.


What makes “Buy Now Pay Later” popular is its flexibility. You don’t have to wait until you have money on your bank account. If you are looking for the best bargains which are only available for a limited period of time, you can just buy it. Many online shops are also happy with that.


Using “Buy Now Pay Later” can affect your credit score. The method is a credit payment in nature. Some lenders will make a hard pull to check your credit records every time you buy something. These hard pulls will appear on your record. Many records of hard pull will definitely affect your credit history. Also, if you fail to make repayments on time, your credit score will be negatively affected.


Before using “Buy Now Pay Later”, you should first think clear. You have to use it carefully. Correct usage of “Buy Now Pay Later” can greatly make purchase more convenient. However, you also need to pay attention to the negative impact of “Buy Now Pay Later”. You should never miss a repayment.

Leave a Reply

Your email address will not be published.