Search

Buy now, pay later (BNPL) plans have become popular for purchasing a variety of items, and some lenders are starting to report these loans to credit reporting companies. While this could help consumers build a credit history, it could also negatively impact their credit scores. BNPL services allow consumers to make payments over a few weeks or months without interest, but late payment fees can be high, and there are concerns that these loans encourage overspending. Most BNPL providers do not currently report payments to credit reporting companies, and credit scoring models have not adapted to incorporate BNPL payments. Therefore, it is not advisable to rely on BNPL services to develop a positive credit history. The most effective way to build credit is to apply for a credit card, pay bills on time, and keep the balance low. [Extracted from the article]

AHEAD RETIREMENT may represent a fresh episode of your life, but a surprising twist might be a drop in your credit score. Alternatively, you can use a service such as CreditKarma.com, which offers VantageScore credit scores from your Equifax and TransUnion reports, or Experian's FreeCreditScore.com, which provides a FICO score based on Experian report data. [Extracted from the article]