July 12, 2023 · 5 mins readBuy Now Pay Later - A Gen Z Shopping Hack!Liyana Eledath

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Hey there, shopaholics! Are you tired of suppressing your shopping desires while waiting for your bank account to catch up? The days when you had to wait for your payday to shop are long gone! Today, you've Buy Now Pay Later (BNPL) at your rescue to get all the things you want instantly!

No one likes losing their hard-earned money all in one go. It hurts! But what if you could get the things you wished for instantly, without breaking the bank, all at once? The pain is bearable, right? Then you buy now and pay later (BNPL) in installments without any extra cost! It’s a win-win!

When you apply for BNPL, you get a credit line according to your past transactions and payment behavior. The credit limit will gradually increase as you make timely payments. You can pay back the amount used over months or days. This is like a short-term loan for 15 to 45 days but with a low or no rate of interest!

Check out ZET App if you want to receive attractive payouts while referring BNPL services.

How is BNPL winning people’s hearts?

It’s not just for big purchases like electronics or home appliances. There are BNPL services that offer the same services for Zomato, Swiggy, etc. Amazon and Flipkart also widely accept the same for small purchases, and they offer these services as well!

For the same reason, it has gained popularity as an alternative to traditional credit cards and other financing options. It offers consumers a more manageable way to budget for their expenses and make larger purchases without immediate financial strain or burden.

One of the reasons BNPL is popular in India is that many individuals, particularly students, self-employed individuals, and those with bad credit scores or no credit history, struggle to get approved for credit cards. Even if they get approved, the charges and credit card offers may not be favourable. BNPL offers an accessible option as it does not require a credit score or collateral for approval. These incentives make it appealing for consumers to choose BNPL over other payment options.

However, it's worth noting that the lack of creditworthiness checks was one of the concerns raised by the Reserve Bank of India (RBI). The RBI implemented guidelines to regulate BNPL services, aiming to protect consumers from falling into debt traps. By providing credit to individuals without assessing their creditworthiness, BNPL services could lend to people who were unable to repay. This led to cases of missed payments.

But, don’t burn your hands!

However, BNPL can lead to impulsive buying and overspending. You may be tempted to make purchases you don’t actually need or can’t afford, simply because you are able to delay payment. As you are required to pay for multiple purchases simultaneously, this can cause financial strain in the long run. Missing BNPL payments or accumulating multiple BNPL purchases can lead to debt and financial stress. It's crucial to be disciplined, budget wisely, and ensure that your repayment capacity aligns with your purchases.

Remember, responsible usage of BNPL is crucial to avoiding falling into a debt trap. Make sure to read and understand the terms and conditions, including interest rates and repayment schedules, to make informed decisions and manage your finances effectively. Missing payments or accumulating multiple BNPL purchases can lead to debt accumulation and financial stress. It's crucial to be disciplined, budget wisely, and ensure that your repayment capacity aligns with your purchases.

Downfall on credit score?

If you make on-time payments, it can only help you build a good credit history and a solid credit score. But, defaulting payments can have a major impact on your credit score, credit report, and overall financial health due to the interest rates charged!

How do I get BNPL?

You can now download ZET App, sign in and earn money for referring buy now pay later services from top brands like Mobikwik, Bajaj Finserv, Freecharge, CASHe Pay Later, etc. You can add yourself as a customer as well and get a BNPL for yourself while earning an attractive amount of money!

Buy now pay later apps offer convenience and flexibility in India, allowing you to make purchases and defer payments. However, it's important to use BNPL responsibly, considering factors like overspending! By being aware of these regulations and practising smart financial habits, you can make the most of BNPL services while safeguarding your financial well-being.

Can’t wait to shop? Don’t wait to shop! Go and get that stunning dress, cutting-edge gadget, or jaw-dropping home decor item. It’s all yours and that too without compromising on your budget.

Frequently Asked Questions

1. What is Buy Now Pay Later (BNPL)? Buy Now Pay Later (BNPL) is a payment option that allows you to make purchases and defer the payment to a later date. It enables you to buy the things you want instantly without having to pay the full amount upfront.

2. Is there a credit check for BNPL?

Unlike traditional credit cards, BNPL services often do not require a credit check or collateral for approval. This makes it more accessible to individuals with no credit history or poor credit scores.

3. Are there any charges or fees associated with BNPL?

In many cases, BNPL services charge no or minimal interest. However, it's important to read the terms and conditions of each service to understand if there are any fees or charges involved.

4. Can BNPL affect my credit score?

Responsible BNPL usage can help you build a good credit history and improve your credit score. However, defaulting on payments or accumulating multiple BNPL purchases can negatively impact your credit score and overall financial health.

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