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Hi this is John from Facilero.com the smart place for payments. Today we’re going to be talking about “Buy Now Pay Later vs Credit Cards”.
It’s not uncommon for people to have a hard time deciding which is better, credit cards or buy now pay later. Both payment options have their advantages and disadvantages. Both of them are reliable and useful in different ways. It’s up to you to choose carefully and compare your options before making a decision.
In this video, we will help you make an informed decision whether you should go for “buy now pay later” or stick to credit cards. We’ll also mention a few of the most important factors that will help you determine what is best for your needs.
Buy now pay later is a service provided by companies or online stores where you can get access to their products without having to front the cash for it, right away. You can pay them in installments until you’ve paid off the whole price of the product. The best part about the, buy now pay later option is that they don’t require any interest often.
Now a credit card on the other hand, allows you to make purchases without having to front the cash. You can make a purchase today and pay for it later, or you can make a payment every month until your balance is completely shifted. Most times credit cards have an interest attached to them which makes paying back more expensive. However, there are many useful rewards that credit cards can provide you with, which makes them very valuable in the long run.
So now that we know that both payment options exist, what are the main differences between them?
1. Interest
Credit cards often have an interest attached to them, while buy now pays later does not. Therefore it’s best to use credit cards only when you are sure that you can repay your balance before the date of payment.
2. Availability
When it comes to availability it is hard to beat credit cards. Credit cards are accepted almost everywhere and offer a lot of options for payments. Buying now and paying later often has limited options and availability, which can make it a bit challenging to use them.
3. Payment amount
The minimum payment for a credit card is often much higher than that of buy now pay later options. This simply means that credit cards may be a better choice if you need to make a large purchase. On the other hand, the lower minimum payment on the buy now pay later option makes them a perfect choice for smaller purchases.
4. Eligibility
Since the credit score of a person is a big factor in giving them access to a credit card, it may be challenging to qualify for one. However, almost anyone can get approved for the buy now and pay later option. You will need a good credit score to get approved for a credit card, but the requirements are much lower when it comes to the buy now pay later option.
5. Rewards
The best part about credit cards is that they offer various rewards and cash backs. When you use a credit card to make a purchase, the store pays a certain fee to the bank for processing your payment. In turn, the bank shares that fee with you in some shape or form. On the other hand, buy now pay later services don’t offer any financial benefit to its users.
Which one is for you?
It depends! If you are planning to make a large purchase, then it would be best for you to use credit cards while making the payment. If on the other hand, your purchase is small and you want to avoid extra interest charges, then the buy now pays later option might be better suited for your needs.
The best part is that you can have both so if you do have both options available, it’s best to use them for different purchases.
Conclusion
Both of the payment options we discussed here have their advantages and can be very useful in different circumstances. This is why it’s important to fully understand your financial situation and your needs to choose the best payment option for you.
If you are a business owner looking for payment solutions, we are here to help! We offer various payment solutions and tailor-made services to best match your needs. You can now meet your customers’ demand for online payments in a fast, safe and reliable way. Book a free consultation call with is here and let us help you, grow your business with the latest payment solutions!
