Common Myths Around Buy Now Pay Later Consumer Financing Debunked
As Point of Sale consumer financing has started to gain significant popularity across the globe, there are still concerns consumers have regarding this payment model. And these concerns are rightly justified given the current financial impact COVID 19 has had on the economy.
For many, there is an unwavering fear about getting sucked into a vicious cycle of debt. Consumers are tired of getting their fingers burnt by lenders and some are still trying to pay off hefty loans that come at an extraordinarily high interest rate. Since Buy Now, Pay Later is a relatively new loan model on the market, there are a lot of missing pieces of information that have sparked some misconceptions around the way this financing works. To put your mind at ease, here are a few facts that debunk the myths around using Buy Now, Pay Later solutions:
Myth: Consumers Are Charged Exorbitant Fees And Fines When Opting For POS Financing
False. It’s easy to see why shoppers are wary about hidden costs, however, the Buy Now, Pay Later finance model does not work in the same way that a credit card does. You do not get any unexpected bills and amounts in the post. ChargeAfter’s consumer financing services provide shoppers with a transparent and detailed breakdown of the payment plan before you check out. There are no sign-up fees or ongoing fees once the full payback plan has been settled.
Myth: POS Financing Affects Your Credit Score
True and False. It all depends on your debt habits. If you keep up with monthly payments or are able to settle the entire installment amount before the agreed payment period expires, then it won’t have any negative impact on your personal credit score. However, if you default on monthly payments or are unable to fulfill your end of the agreement in the predetermined period of time, then it can have a negative effect on your credit score, as is the case with any type of credit or loan model.
If you have a healthy financial mindset in terms of paying back debts, then you can rest assured knowing that your credit score will be intact when using ChargeAfter’s POS financing options.
Myth: Applying For Buy Now Pay Later Is A Lengthy Process
False. There is no denying that the biggest downfall of applying for credit is the amount of time it takes. Not to mention the fact that every aspect of your financial past is scrutinized with a fine-tooth comb. However, Applying for Buy Now, Pay Later is a simple process that takes a few minutes to complete. Once you have selected the POS financing option on check out, your details are matched against a large network of lenders. If your application meets the criteria in this network, the loan is approved immediately. There is no need to visit a bank or fill out mountains of paperwork. The application is completed without ever leaving the counter or checkout page.
Myth: You Need A New Credit Card When Applying For Point Of Sale Financing Plans
False. You do not need to sign up for a new credit card or any other type of store card when applying for Buy Now, Pay Later solutions. As we mentioned before, all that is required is a few simple pieces of information during check out. You are also able to choose whether you want the monthly payments to be charged to your existing debit or credit cards.
When done responsibly, using Buy Now Pay Later options from ChargeAfter is a seamless and affordable way to get the goods you want without breaking the bank or getting yourself into mountains of debt.