Do Buy Now, Pay Later (BNPL) loans have fees?
Generally, yes. While many BNPL loans don’t charge interest, most do charge late fees if you don’t make payments on time. Each BNPL lender has different fees and policies, so it’s important to carefully review each BNPL loan’s terms and conditions to understand these fees and what you can do to avoid them.
Also, be aware that your bank may charge you an overdraft or non-sufficient fund fee if you sign up for automatic repayment through your debit card or bank account and don’t have enough funds to cover the payment. In addition, you could be blocked from using the BNPL loan to make future purchases until you catch up on these payments. If you fail to repay the BNPL loan, your account may be sent to a debt collector. If the debt collector or BNPL lender reports payment information to the credit reporting companies, any missed or late payments might negatively impact your credit history and credit scores.