Buy now pay later just got worse 😰

Welcome Back!!

So today we’re talking Buy Now, Pay Later Loans (BNPL) and WHY they just got worse.

I’m sure you’ve heard of these before... When you go to check out and they have this magic button that allows you to buy something in installments. Like Affirm, or Klarna…

Isn’t it funny how they show you that button, BEFORE they show you the actual “checkout” button?? It’s kinda like they want us to use it instead of our own money 😑

Anyways, let’s get into this…

The current state of Buy Now Pay Later’s

So these BNPL buttons show up when you're checking out and it suddenly makes $240 feel like $60.

And here's the thing, BNPL grew into a whole lifestyle. You can finance your groceries, your DoorDash order, and some people are Klarna-ing utility bills and somehow that's just... normal now?? But here’s the thing…

33% of people said that they use BNPL because of the PSYCHOLOGICAL effect it gives them. People HAVE the money!!! They just don’t wanna lose their money right now, so they sign up to finance things to soften the blow. 

Here's What Changed and WHY it’s risky now

For a long time, BNPL loans were kinda flying under the radar. It wasn't reporting to your credit. So it had 0 effect on your credit score, until about 8 months ago…

In late 2025, FICO (which is the most important credit score company) began tracking BNPL’s into their scoring tools. Which means that Affirm and Klarna show up on your credit now.

So what does this mean?

This means 2 things…

1. If you EVER accidentally miss a payment (which 24% of users have done) that now reports to your credit as a missed payment. Which is legit the worst thing for your credit. Your score will plummet from that alone

2. Affirm loans are treated JUST like regular loans. It’s stupid, but when you pay off a loan, it kinda dings your score. So if you’re just gettin Affirm loans over and over again, that can hurt. Just some things to keep in mind.

Now, there is a silver lining

Here's something most people won't tell you… In the short run, having a BNPL loan reporting on your credit can actually help you.

It adds a new account to your credit profile which adds diversity to your credit mix. If you're newer to credit, or rebuilding, that's good!!!

ALSO, paying a loan off RESPONSIBLY can build good payment history, so that’s awesome!!!

The point isn't that BNPL is pure evil. The point is that it's a tool that a LOT of people are using casually for the wrong reasons.

What would Stack do?

Stack would use Affirm on things that make more sense.

For example, Stack would use Affirm on something like a new washer and dryer set, because he’d rather keep that $1,500 in a high yield savings account, than spending it all at once. He can make interest on his money while he pays that washer and dryer off with installments.

He would definitely NOT finance a DoorDash order. That’s just wild. You're paying interest and meanwhile that food went down the toilet weeks ago.  

Stack would also follow the Responsible Adult Instagram 🤣 If you guys haven’t already, there’s tons of daily content being posted on the Responsible Adult IG that Stack and I would love for you to check out.

Go be Responsible Adults ❤️  

Mikey (& Stack 🦥)

www.responsibleadult.life