What happens if I can’t pay back a Buy Now, Pay Later (BNPL) loan?

If you do not repay your BNPL loan, your debt could be turned over to a debt collector and it could be reported to a credit reporting company and hurt your credit scores.

Although you can generally qualify for a BNPL loan without a hard credit inquiry, make sure you have a good understanding of your finances and whether the payments will fit within your budget. Just because you qualify for a BNPL loan, or any other credit product, doesn’t mean you should use it. Contact a qualified financial advisor if you need help creating a budget or check out our budget resources.

Military servicemembers can also reach out to their installation’s Personal Financial Manager (PFM) or a DoD Personal Financial Counselor (PFC)  if they need help budgeting or understanding financial products like BNPL loans.