Individuals suppose buy-now-pay-later helps them in a single essential means. It’s not.

Customers are making one essential miscalculation once they use buy-now-pay-later providers: They consider it is going to assist them construct their credit score, however actually it gained’t, in response to a New York Federal Reserve evaluation of the explanations customers flip to such fee choices.

“Customers suppose they’re constructing credit score historical past with buy-now-pay-later, and that’s extremely problematic, and the alternative of actuality,” stated Jennifer Chien, a senior coverage counsel on the monetary equity group at Client Reviews.

Purchase-now-pay-later…