Buy Now, Pay Later: Difference between revisions

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===Ease of debt===

Many credit lenders offer soft credit checks and low interest rates to entice un-creditworthy consumers. While these practices do have some benefit, particularly for financially aware individuals seeking to improve credit, these enticements often bring in consumers who are more vulnerable. Buy Now, Pay Later lenders are especially egregious in advertising to vulnerable consumers, often advertising alongside necessary online purchases such as groceries. The lack of gatekeeping from hard credit checks and interest rates means that more consumers are accruing easily avoided debt.

Many credit lenders offer soft credit checks and low interest rates to entice un-creditworthy consumers. While these practices do have some benefit, particularly for financially aware individuals seeking to improve credit, these enticements often bring in consumers who are more vulnerable. Buy Now, Pay Later lenders are especially egregious in advertising to vulnerable consumers, often advertising alongside necessary online purchases such as groceries and even rent and utilities. The lack of gatekeeping from hard credit checks and interest rates means that more consumers are accruing easily avoided debt.

===No safeguards===

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==Examples==

*[https://www.affirm.com/ '''Affirm'''] ~~to pay for your groceries.~~

*[https://www.affirm.com/ '''Affirm''']

*[https://www.afterpay.com/ '''Afterpay'''] ~~to pay for gas.~~

*[https://www.afterpay.com/ '''Afterpay''']

*[https://www.klarna.com/ '''Klarna'''] ~~to pay for Doordash deliveries.~~

*[https://www.klarna.com/ '''Klarna''']

*[https://www.shopabunda.com/ '''Abunda'''] ~~to pay for clothes and household items.~~

*[https://www.shopabunda.com/ '''Abunda''']

*PayPal

*Apple Pay

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 ===Ease of debt===
-Many credit lenders offer soft credit checks and low interest rates to entice un-creditworthy consumers. While these practices do have some benefit, particularly for financially aware individuals seeking to improve credit, these enticements often bring in consumers who are more vulnerable. Buy Now, Pay Later lenders are especially egregious in advertising to vulnerable consumers, often advertising alongside necessary online purchases such as groceries. The lack of gatekeeping from hard credit checks and interest rates means that more consumers are accruing easily avoided debt.
+Many credit lenders offer soft credit checks and low interest rates to entice un-creditworthy consumers. While these practices do have some benefit, particularly for financially aware individuals seeking to improve credit, these enticements often bring in consumers who are more vulnerable. Buy Now, Pay Later lenders are especially egregious in advertising to vulnerable consumers, often advertising alongside necessary online purchases such as groceries and even rent and utilities. The lack of gatekeeping from hard credit checks and interest rates means that more consumers are accruing easily avoided debt.
 ===No safeguards===
@@ Line 19: / Line 19: @@
 ==Examples==
-*[https://www.affirm.com/ '''Affirm'''] to pay for your groceries.
+*[https://www.affirm.com/ '''Affirm''']
-*[https://www.afterpay.com/ '''Afterpay'''] to pay for gas.
+*[https://www.afterpay.com/ '''Afterpay''']
-*[https://www.klarna.com/ '''Klarna'''] to pay for Doordash deliveries.
+*[https://www.klarna.com/ '''Klarna''']
-*[https://www.shopabunda.com/ '''Abunda'''] to pay for clothes and household items.
+*[https://www.shopabunda.com/ '''Abunda''']
 *PayPal
 *Apple Pay