4 Ways To Protect Your Credit If You Use BNPL Apps

Core Insights - The usage of Buy Now, Pay Later (BNPL) services has significantly increased, driven by ease of use and economic challenges, but changes in credit scoring by FICO may impact users negatively [1] Group 1: BNPL Usage and Impact - A recent study indicates that 38% of BNPL users are unaware of upcoming changes to FICO scoring that will include BNPL usage, which could lead to long-term credit issues for many [2] - Approximately 49% of BNPL users have missed payments, which could now adversely affect their creditworthiness due to the new FICO scoring criteria [3] - Over 60% of BNPL users have multiple BNPL loans, with 54% reportedly using these services for luxury items rather than necessities, indicating a potential for overspending [4][5] Group 2: Credit Management Strategies - Users are advised to automate payments or set reminders to avoid missed payments, which can help protect their credit scores [4] - Regularly reviewing credit reports is essential, as 45% of BNPL users have faced legal disputes, with over 60% of those disputes related to billing errors [6] - It is recommended to use only reputable BNPL providers to mitigate risks associated with these services [7]