Understanding Buy Now, Pay Later

What does 'Buy Now, Pay Later' (BNPL) mean?

• A type of insurance policy.

• A savings account with high interest.

• A loan that divides your purchase into equal payments and you pay after you purchase.

• A credit card with no interest.

When is the first payment due in a BNPL plan?

• At the end of the year.

• At checkout.

• One month after purchase.

• After the last installment.

What is a common model used by BNPL providers?

• Pay-in-four model.

• Pay-in-six model.

• Pay-in-three model.

• Pay-in-ten model.

What happens if you miss a payment in a BNPL plan?

• The loan will be canceled.

• You will receive a discount.

• Your credit score will improve.

• You may be charged a late fee.

What is a potential risk of using BNPL?

• Increases your savings.

• Encourages overspending.

• Improves your credit score.

• Reduces your debt.

How does BNPL affect your credit score?

• It doesn't affect your credit score if payments are on time.

• It always improves your credit score.

• It always lowers your credit score.

• It doubles your credit score.

What should you consider before using BNPL?

• If you have a coupon.

• If the product is on sale.

• If the store is nearby.

• If the purchase is necessary.

What is a benefit of BNPL?

• No-interest financing.

• Guaranteed credit score increase.

• Free products.

• Unlimited spending.

What is a common fee associated with BNPL?

• Late payment fee.

• Early payment fee.

• Application fee.

• Membership fee.

What is a 'soft credit check' in BNPL?

• A credit check that doesn't affect your credit score.

• A credit check that doubles your credit score.

• A credit check that always lowers your credit score.

• A credit check that improves your credit score.