Understanding Buy Now Pay Later (BNPL)

What is a key difference between BNPL services and traditional loans?

• Traditional loans are managed by third-party companies.

• BNPL services often do not charge interest if paid on time.

• Traditional loans are interest-free.

• BNPL services always charge interest.

Which of the following is a potential benefit of using BNPL?

• It can help manage cash flow by spreading payments.

• It requires a hard credit check.

• It eliminates the need for a budget.

• It always improves your credit score.

What is a potential risk associated with BNPL plans?

• They require a large upfront payment.

• They are only available for electronics.

• They can lead to overspending due to easy payment terms.

• They always have high interest rates.

Which BNPL provider offers a transparent approach with upfront payment details?

• Affirm

• American Express

• Klarna

• Afterpay

How do traditional credit card companies integrate BNPL options?

• By requiring no credit checks.

• By offering interest-free loans.

• By tying installment payments to existing credit accounts.

• By eliminating all fees.