SUMMARY:

It's important to understand the impact of putting off paying for goods and services.

Online purchases are second nature these days. And pay options like Paypal, Apple Pay and stored credit card information have made it simple to make purchases with a simple click. In recent years, an additional pay option has popped up at checkout.

Pay later loan providers, like After Pay, Affirm and Paypal Credit offer to spread out your payment over regular intervals instead of paying at time of purchase. You get the goods and pay in installments. But are these payment options safe to use?

One thing members should know is that these types of payments don’t directly affect your credit scores and are safe to use, according to NerdWallet.com. Retailers partner with the loan providers, who receive a commission.

But remember, there are several cons to buy-now/pay-later forms of payments. They lack protections of purchases (like credit cards offer). They also may encourage impulse buying, can affect your ability to apply for other types of loans, and could possibly cause you to incur late payment fees. If manageable, it’s best to pay at point of purchase.