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Buy Now Pay Later: Exploring Limitations and Smarter Alternatives

Apr 30, 2024
Find better alternatives to buy now pay later methods

Buy now pay later (BNPL) options are on the rise in Georgia and South Carolina due to the ease of use and convenience of monthly payments. Often though, these programs are not the best financial choice for people who are looking to make smart money moves, especially if the buy now pay later option encourages spending with payments exceeding your monthly budget. 

Those who are conscious of making the best financial decisions for their future should be aware of the smarter options that are available. 

Understanding Buy Now Pay Later

The BNPL option allows people to get the instant gratification of purchasing something now (typically online), with the ability to make installment payments on the purchase. More often than not, the purchase is made through a third-party company that extends an offer at the time of check out. 

Limitations and Risks of Buy Now Pay Later

  • Not Accepted at All Retailers – While the option to use buy now pay later is frequently offered while shopping online, the ability to use it anytime and anywhere is limited. However using a smarter product, such as a Peach State Visa Credit Card that can be used anywhere that accepts Visa, is a better long-term solution.

  • Consequences of Missing a Payment – It's important to consider the penalties and financial stress associated with missed payments on a buy now pay later program. Most BNPL companies require payment to be made via an automatic bank withdrawal each month. Should you not have the available funds when the payment is due, in addition to the late fee, you may incur an insufficient funds fee from your financial institution. 

  • Impact on Credit Score – Be aware that each buy now pay later provider handles credit checks and reporting to credit bureaus differently. This could mean inconsistent reporting and negative impacts on your credit score. People in Georgia and South Carolina may prefer the low interest of a Peach State Visa Credit Card, which can enhance your credit history with proper management.

  • Lack of Protection – While buy now pay later programs do have some consumer protections, they're not as comprehensive as those on credit cards. Through the Fair Credit Billing Act, credit card users can file disputes against billing errors or issues with the quality of a good or service. There are also dispute protections for items that were purchased as a result of fraud.  

It's important to note that if you decide to use BNPL services, you should do so with caution. While the buy now pay later option is very appealing, it can quickly lead to overspending. 

Peach State Credit Cards: A Safer Alternative

Peach State offers a variety of credit card options to help you make the best financial decisions to fit your unique needs. One of the top reasons why financially savvy people choose Peach State is because they haven't raised their Visa Credit Card rates in over 20 years!1

  • Builds Credit  A solid credit history is the key to a successful financial future. Choosing a Peach State Visa Credit Card will help establish your repayment history and a good credit report, which is exactly what you need to get lower interest rates on loans and other financial products. 

  • Earn Rewards – Peach State reward cardholders are automatically enrolled to earn one bonus point for every dollar spent that can be redeemed for perks like merchandise, travel, and air miles.

  • No Annual or Cash Advance Fees – Savvy shoppers will appreciate the cost savings of Peach State's Visa Credit Cards. There are zero annual fees, fee-free balance transfers and in the event that you need access to quick cash immediately for an emergency, there are no fees for cash advances. 

  • Added Protection Against Fraud – We take your money and personal information seriously and it's our top priority to ensure the safety of all transactions with Peach State. Through Visa, your Peach State Visa Credit Card is protected under Visa's Zero Liability Policy. This means you won't be held responsible for unauthorized or fraudulent charges to your card. You can also set up account alerts to notify you when your card is used. Our goal is to minimize your exposure to risk and the impact of any fraud, so you can trust your information is safe and secure at Peach State.

  • Universal Use – Unlike buy now pay later programs, Peach State Visa credit Cards are widely accepted and offer a truly global payment solution. Enjoy convenience and freedom when you choose a Visa Credit Card from Peach State.

When you make a savvy financial move and choose Peach State vs. a buy now pay later company, you’re getting a lot more than just a credit card. You're also creating responsible money management and budgeting techniques that will help you in your financial journey.


Peach State Credit Cards - A Smart Financial Choice for Georgians and South Carolinians

 Peach State is a committed financial partner to residents of Georgia and South Carolina, and we care about the financial well-being of our members. While BNPL is on the rise, we realize it may not be the best financial choice for everyone's needs. 

Peach State’s credit cards not only offer a safer alternative for paying for the things you need and want, but can help you build positive gains on your credit and future borrowing needs. We understand that the success of your financial journey is a lifelong venture that doesn’t just end at checkout.   

Savvy residents in Georgia and South Carolina who are looking for smarter financial choices will enjoy the security and long-term benefits offered by our credit cards. Contact Peach State today to get started!

1 Rates are subject to change.

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