Buying now, subsequent loans can later pay millions of credit grades for Americans worldwide

The purchase now, and the subsequent revolution that has taken the American economy through the storm can soon stimulate a “disaster”, according to one expert.

A credit restoration expert known as @fitcreditdocor Micha Smith, a credit restoration expert known as @fitcreditdoctor Mika Smith, a credit restoration expert known as @fitcreddoctor Micheh Digital, said, “Anxiety is that negligence, the lack of education will really lead to great harm For people unnecessarily. “

“After this hit your credit report in a positive way, well, this is great,” I noticed, “but if you hit a negative way, this is where we will see some of the big catastrophe.”

In June, the main credit reports Fico Company Declare It will start to merge the “Buy Now” loan data, pushing later “(BNPL) in its credit registration forms, specifically with the introduction of Fico 10 BNPL and Fico Score 10 T BNPL.

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For consumers, this means that credit grades will now be affected by their BNPL habits. Payments have not always appeared on credit scores, so one missing person did not affect the credit. However, it did not help build credit as well.

Although it is scheduled to enter into force in the fall of 2025, Smith urges the extreme caution of current users to pay the loan.

“Your payment record is the largest factor when calculating your credit scores. So if all these BNPL loans open people, if they don’t pay them on time, this is where we will see a significant decrease in credit grades.”

New report From LindingTree I found that more than four out of 10 BNPL users have late payments such as Afterpay, Klarna, Affirm, Uplift and others, an increase of 34 % over the previous year. Twenty -five percent of BNPL users also use the loan for daily commodities such as groceries, an increase of 14 % a year ago.

Even Doordash and Uber Eats cooperated with BNPL companies On the orders of delivering food.

“You have to ask yourself this question: I finance food delivery. Is this logical?” Smith proposed. “I want people to understand that the borrower is a slave to the lender … Financial security comes from obtaining good money habits, financing food delivery … This is not a good financial habit. So I want people to know, listen, if you cannot tolerate it, I will be displaced from you not to finance it.

“If there is an interest in it, my God, do not make me start attention,” she added. “What a nightmare. He ends up a $ 20 pizza at a cost of $ 100. That’s crazy.”

Although this may provide the financial “destruction” of individuals, Smith Guess is that BNPL data is important information that must be taken into account from a banking perspective.

The expert said: “The banks are always trying to alleviate their dangers, right? They divide money or divide money, and they offer loans, and they want to alleviate their dangers and want to evaluate the merit of the borrower.”

So your credit degree, mainly, tells the world: How much can you pay something? “What is your risk factor? “Smith continued. So I think it is already good to include these things in credit, and I think it can help more people to establish credit if they use the right path.”

A survey from Partnercentric found that 45 % of BNPL users will not change their behavior if loans start Impact on their credit degree. Smith believes that consumers will only change due to inspiration or despair.

“What people really do not really understand the scale of the damage they are or not doing, there will be no incentive to change behavior,” she said.

“Just be aware that if life occurs, and you end up to the failure to pay, this is a periodic effect and it will have a negative impact on you,” Smith tag. “If someone lives in salaries, we will tell them, perhaps this is not the best option … Life talks to all of us … and this is what I fear from buying now, and later pay, even with more smart people, even with people who buy things in good faith, with good jobs.

If you are going to use BNPL services, Smith recommends making your search, reading microscopic printing, or seeking help from a financial advisor.

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“I want people to realize that this will collide in your credit report, and you need to make sure that you appoint him and forget him. Put everything on the automated pilot. I always say, my guide says,” an ounce of prevention deserves more than a pound of treatment. “

“Many people only think,” Oh, it is a missed batch. How bad is? “I like, how bad (that) is that in your report for seven years.”

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