The catch with buy now, pay later could be your credit
By JACKIE VELING of NerdWallet
Buy now, pay later payment plans often promise no interest or hidden fees, which can make them a tempting financing option for shoppers. But unlike traditional lenders, some of the popular buy now, pay later providers don’t report on-time payments to the major credit bureaus, meaning you can’t use these plans to help build your credit. However, some providers will report late or missed payments, which can hurt your credit score. If you want to focus on building credit, look instead to other financing alternatives like a secured credit card or credit-builder loan.
