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Risks of Buy Now, Pay Later You Need to Know Before Making Any Transaction

By Eskanisa R

19 October 2020

Know the risks before trying this payment service.

Photo source: Pixabay
 
We are familiar with term of buy now pay later. As the name implies, this service enables users to pay for their various products with instalments. If used wisely, this pay later service is convenient of payment and financing. Here are some important points you need to keep in mind before applying pay later.

1. Consumptive
Pay later can be dangerous for those who have not learned to use them. It’s easy and convenient to spend money with pay later. It can be easier to access than credit card, but if you do not using it responsibly, you could end up having to spend too much. Moreover, the ease of payment and purchase increasing tendency to buy goods or items you do not really need.

2. Indebtedness
Grant Thornton, a global organization provides advisory, assurance, and tax services revealed that indebtedness while using pay later service will cause a bad credit. Bad credit is a person’s record of past failures to make timely payments and will damage their reputations to the credit bureaus. Your loan application for housing or vehicle may be declined if credit bureaus do not think you can afford to pay the loan.

3. Cybercrime
Cybercrime make everyone nervous. It is not only someone’s computer but also online where number of people are at risk. There is always the possibility, even (pay later) companies prepared to survive an attack of cybersecurity.

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