<ul data-eligibleForWebStory="false"><li>Buy now, pay later (BNPL) services provide short-term financing by breaking purchases into installments, often interest-free. Usage of BNPL services like Klarna and Affirm is increasing for various purchases, including meals from DoorDash.</li><li>Comparison between BNPL services and credit cards show differences in structure, fees, and credit score impact. Credit cards offer rewards and help in building credit, whereas not all BNPL services report to credit bureaus.</li><li>BNPL services can be enticing for those with low credit scores, but may lead to financial risk. Consumer Financial Protection Bureau report reveals usage patterns and risks associated with relying heavily on BNPL services.</li><li>Financial advisor warns against overdependence on BNPL services for instant gratification, highlighting the importance of responsible usage. Recommends using BNPL for one-time large purchases and suggests utilizing 0% APR credit cards to avoid interest payments.</li></ul>

The Smart Shopper’s Guide To Buy Now, Pay Later: Why Credit Cards Still Come Out On Top

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