That “Pay in 4 Installments” button at checkout seems harmless enough. A $200 purchase becomes four easy payments of $50. No interest, no credit check — what’s not to love?
But here’s the thing: Those small payments can add up fast, especially when you’re juggling multiple Buy Now, Pay Later (BNPL) plans at once. And since Fall 2025, how you handle BNPL debts could actually affect your credit score.
If you’ve ever lost track of a BNPL payment — or wondered whether all those “easy” installments are really working for you — you’re not alone. Let’s break down what’s happening with BNPL, why it matters and what you can do to stay in control.
What Is Buy Now, Pay Later?
Buy Now, Pay Later is a type of short-term financing that lets you split a purchase into smaller installments — usually four payments over six weeks. Most BNPL plans don’t charge interest if you pay on time — but start missing payments, and you could see those terms change.
Because BNPL approval is quick and doesn’t usually require a hard credit check, it can feel like a separate thing from traditional credit. But make no mistake: It’s still debt.
Why BNPL Is Growing Fast
BNPL usage has exploded in recent years. In 2024, about 86.5 million Americans used BNPL services, and that number is expected to climb to over 90 million in 2025. Monthly BNPL spending increased nearly 21% between June 2024 and June 2025.
BNPL is a convenient solution, which is why nearly half of Americans say it makes managing large or unexpected expenses easier. And for younger shoppers, it has a reputation of being an accessible alternative to credit cards. But it’s exactly that ease of access is also what makes BNPL risky.
The Hidden Risks of BNPL
BNPL has been normalized as a payment method, and its popularity can obscure its risks. Seeing “$40 due today” instead of the full $160 tricks your brain into thinking the purchase has less impact on your wallet. And because you can buy in a tap, there’s no pause to really assess the reasons for buying what you’re buying.
And while impulse purchases happen, BNPL plans can break your budget in more ways than one.
Overlapping Due Dates
When you have three or four BNPL plans running at once, payments can hit your account on different days — sometimes in the same week.
Missed Payments
Nearly one in four BNPL users made a late payment in 2024, up from 18% in 2023. Younger users are even more likely to fall behind.
Late Fees and Overdrafts
If a BNPL payment fails, you could get hit with fees from both the BNPL provider (and even your bank!).
Credit Score Impact
Since late 2025, FICO has incorporated BNPL data into some credit scores. That means missed payments could hurt your credit — just like a late credit card bill.
How to Make BNPL Payments Work for You
Already started an installment plan? Then you have a few opportunities to make these programs benefit your short- and long-term financial goals.
- Pay On-time: If you consistently make your BNPL payments on time, it may boost your credit — and that could be an advantage if you have a limited credit history. But be cautious: Write down the total purchase and payment dates. Don’t rely solely on app reminders as they’re easy to miss.
- Use BNPL Strategically: Opening several BNPL accounts quickly could signal risky borrowing behavior to lenders. But for people who miss payments or stack multiple loans, the impact could be bigger.
- Limit how many plans you have at once: One BNPL might be a good idea and benefit your budget. Three or four at the same time? That’s trouble. Ask yourself: Can I afford this without BNPL? If the answer is no, it might be worth reconsidering the purchase altogether.
Already Juggling Multiple Debts, Including BNPL Plans?
If you’ve got more than one BNPL plan running — or if BNPL debt has piled up alongside credit cards and other bills — the first step is to get a clear picture of what you owe.
That’s where we can help. When you talk to Accredited Debt Relief about a new approach to repayment, we’ll walk through all your outstanding debts — including BNPL, credit cards and personal loans — and show you how we can get those bills into one manageable monthly payment (and even help you get debt-free in as little as 24-48 months!).