As Christmas approaches many families are feeling the pressure to buy their family members gifts.
Mounting bills, gas and food prices are causing people’s wallets to stretch thin before buying gifts has even become an option.
The latest option for many purchases online is a buy now pay later set up. Some deals aren’t bad when it comes to interest, but it’s better to read the fine print before agreeing.
Affirm is one of the more popular options used by places like Walmart for items online. But when you read the fine print, you’ll see the interest rate is 20%.
While the company says it doesn’t charge for late fees, it will hit your credit and ban you from their services again.
Other places that offer the deal sometimes put in the fine print that the payments are closer together than they may appear. $50 per month sounds affordable, but PayPal Credit will charge you that much every two weeks.
Returning items bought this way is a hassle as well, because you aren’t paying the place you bought it from. You’re paying a loan company.
Not all of these loans are bad. Many don’t do a hard pull on your credit and even have some interest free options. The important thing to do is to read the details and understand what you’re signing up for.
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