As online shopping grows, ‘Buy Now, Pay Later’ (BNPL) services are becoming increasingly popular because they are easy to use and initially appear interest-free. However, experts warn that this convenience can quickly turn into a debt trap. Many users take multiple small BNPL loans across different platforms without realising the cumulative burden. Missed repayment dates can soon strain household budgets and damage credit scores. Therefore, we will talk about BNPL. We will also know that- Expert: Jitendra Solanki, Financial Advisor, Ghaziabad Question- What is BNPL? How is it different from EMI? Answer- This is a digital payment service. With its help, you can buy something and pay for it later or in installments. If you pay on time, no interest is charged. Difference between BNPL and EMI Why is the trend of BNPL increasing in online shopping apps? To this, the expert explained that there are several reasons. Such as: What mistakes do people make when using BNPL? Jitendra said that it is easy to use, but people repeatedly make some common mistakes. See common mistakes in the graphic below- How do small BNPL payments become big debt? Understand this with pointers How to keep track of BNPL? For this, see all the necessary steps in pointers What are the disadvantages of not making BNPL payments on time? What is the impact of BNPL on credit score? BNPL affects the credit score in the following ways: What to do if you are stuck in BNPL debt? See the graphic for ways to get out of BNPL debt How to use BNPL correctly so that debt does not increase? Keep in mind some of the points given in the graphic – Common questions and answers related to BNPL Does BNPL also create a credit history? To this, he said that many BNPL service companies report user payment behavior to credit bureaus. Therefore, timely payment is very important here too. Making payments on time improves your history, while delays or defaults damage your score. All services indirectly affect your credit profile. Who should avoid taking BNPL? BNPL can increase financial stress for these people- What is the difference between BNPL and credit cards, which is better to choose? BNPL involves small, short-term payments, while a credit card provides a formal credit line. Post navigation Get a tax refund on PF withdrawals and FD interest:Step-by-step process of filing ITR under both old new income tax regimes Homebuyers can seek relief for delay after possession:What exactly has the Supreme Court ruled, and why does it matter for consumers?
