top of page

What You Need to Know About Buy Now Pay Later

Buy Now Pay Later programs offer an appealing way to shop online without paying at the time of purchase. At FitMoney, we understand that budgeting and managing finances can be difficult, but by developing financial literacy skills you can build a brighter financial future for you and your family, while also building confidence in everyday spending decisions.

That's why we've launched a brand new module on what Buy Now Pay Later programs are, how they work and some tips to keep in mind when using them.

What is Buy Now Pay Later?

Buy Now Pay Later programs allow you to purchase items now and pay for them later, usually within a set period of time with no interest or late fees. Some companies you may have heard of include Klarna and Afterpay. However, it's important to remember that by entering into a loan agreement through these services, you are still responsible for making payments on the agreed-upon date. Failure to do so could result in late fees and other penalties.

As of the time of publishing, Buy Now Pay Later companies aren't reporting on-time payments to credit bureaus, but missed payments can contribute negatively towards your credit.

How do Buy Now Pay Later programs work?

When using a Buy Now Pay Later program, you will need to provide your payment details such as bank account and credit card information. This is so the lender can set up automatic payments to be deducted from your account on the agreed-upon date.

It’s important to note that when signing up for these services, you are entering into an agreement that must be adhered to or there could be consequences. Be sure to check all terms and conditions before signing up for any loan agreement.

What You Need to Know about Buy Now Pay Later

How can I use Buy Now Pay Later safely?

1. Look around to compare different options and pick the one that best suits your needs.

2. Make sure you can afford the item in full before agreeing to a loan agreement.

3. Always read all terms and conditions before committing to any loan contract.

4. Keep track of your payments and make sure they are up to date by regularly checking your statements, so you always know what is owed and when it's due.

Remember, using these services aren't necessarily a bad choice, but the best choice is making sure you're set up to fulfill all promises and expectations upon entering the loan.

For more resources, lessons, and activities, visit


bottom of page