Smart BNPL use: Low EMIs, fewer plans, no missed dues

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BNPL offers have become a common feature at online checkouts, letting you split bills into smaller payments. But what feels like free credit is still debt. If not handled carefully, it can pile up fast and hurt your credit profile.

Why you should cap instalments

Experts suggest keeping all BNPL and credit card EMIs together within 10-15 percent of your monthly income. Anything more eats into essentials and savings. Even if each instalment looks small, multiple BNPL accounts across apps can add up silently. A fixed ceiling helps prevent cash flow shocks later.

The risks of overuse

Unlike traditional loans, BNPL doesn’t always show up on your credit report right away, which can make it feel harmless. But if you miss payments, it quickly appears in your credit history and drags down your score. Late fees and penalties also snowball. Repeated use for everyday expenses signals over-reliance on credit and can make lenders wary when you apply for bigger loans.

Use it only for planned buys

Reserve BNPL for big-ticket purchases you’ve already budgeted for, not impulsive shopping. Avoid using it for groceries, takeaways, or travel bookings. Link payments to one trusted app or merchant to track dues easily, and don’t stack multiple BNPL plans from different platforms.

Keep repayment simple

Turn on automatic payments so you never miss due dates. If your income fluctuates, set reminders and pay early when possible. Before taking a new BNPL offer, check your existing commitments—most users underestimate how many active plans they already have.

Bottom line

Buy Now, Pay Later can be a convenient bridge for short-term cash flow, but it isn’t free money. Keep EMIs under 15 percent of income, restrict usage to essentials, and pay on time. Used wisely, BNPL can help manage expenses; used carelessly, it becomes just another form of debt.