Buy Now Pay Later on Black Friday: 5 Things to Check First

Buy Now Pay Later can be handy, but late fees and stacked payments catch people out. Here is what the CFPB says to watch for. Not financial advice.

1. How it works

The CFPB says BNPL loans are usually repaid in four or fewer payments, often every two weeks.

2. The fees

Many charge no interest, but most charge late fees for missed payments. Read the terms before you buy.

3. Track the dates

Put every due date on your calendar, especially if you use more than one plan.

4. Budget for all of it

Plan for every payment, not just the first.

5. If something goes wrong

File a complaint at consumerfinance.gov/complaint. Scams go to ReportFraud.ftc.gov.

Sources

CFPB (What is a Buy Now, Pay Later loan?).

FAQ

Does it affect my credit?

The CFPB says your payment history may not be reported to credit bureaus.

How old do I need to be?

Generally 18 or older.