We have previously compared BNPL and credit cards, but that doesn’t mean they can't go together. Linking a rewards credit card to a BNPL account and using it to pay instalments will earn rewards, such as cashback and points. Some rewards credit cards also have monthly caps on the rewards earned, but due to BNPL’s instalment nature, you can spread out your spending on the rewards credit card so you decrease the likelihood of exceeding that cap. A great pairing indeed! Of course, this means exposing yourself to risks present in both BNPL and credit cards, so you have to pay close attention to your expenditure. And of course, linking your BNPL account to any credit card means that as long as you haven't maxed out your balances up to your credit limit (don't do it!), you can probably avoid those punitive BNPL late fees.
Due to the delayed payment nature of BNPL schemes, you can free up some of your idle cash. Don’t let that spare cash sit around and do nothing! Put it into a savings account to earn some interest in the short term. But remember, you will still have to pay back every penny (and, please, preferably on time, too)!
As mentioned, if you are to use BNPL, it's critical to be able to keep up with your instalments to guarantee that you don’t incur any of the late fees. Thus, using a budgeting app on your mobile device may be a convenient way to keep track of your expenditure! Alternatively, just note down in your phone calendar when the remaining instalments are being deducted from your bank or card account.
Photo by Amol Tyagi on Unsplash
TIPS FOR USING BNPL. COMPLETED. ✅
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