A new LendingTree report reveals that most shoppers prefer store cards over buy now, pay later plans for holiday financing.
When asked to choose between a store card or a buy now, pay later plan, 58% of surveyed shoppers prefer store cards , according to a new report by LendingTree. That choice speaks to the fact people may be looking for a little bit longer-term help with their financial situation,' said Matt Schulz, chief credit analyst at LendingTree.to the Consumer Financial Protection Bureau.
Many short-term BNPLs do not charge interest, but longer-term loans do, and on the higher end, those ratesDarden Restaurants' sales rise 6%, fueled by Olive Garden and LongHorn Steakhouse About 59% of Gen Zers and 51% of millennials prefer BNPL over retail store credit cards, Lending Tree found. To compare, 38% of Gen Xers and 22% of baby boomers prefer BNPL. 'Buy now, pay later really started off as a millennial, Gen Z phenomenon,' Schulz said.'Younger Americans really drove a lot of the growth.' Whichever payment option you plan to use to finance holiday purchases this year, keep in mind the cost of carrying the debt, experts say.A retail store credit card is a long-term, revolving line of credit that a store offers in conjunction with a bank partner. To entice new users, stores generally offer applicants a discount on their first card purchase, or financing deals. The card may also be tied into the retailer's loyalty program, sometimes with bonus rewards for cardholders. A buy-now, pay later loan — issued through a provider the merchant works with — typically breaks up the total cost of a purchase into installment payments over a set period of time. Some providers offer longer repayment periods, too, and charge interest. Users can have multiple purchases with the same BNPL provider at once, but those may be treated as individual loans with their own repayment terms.A retail credit card can affect your credit history, as the account is reported to the three major credit bureaus: Equifax, Experian and TransUnio
STORE CARDS BUY NOW PAY LATER CONSUMER FINANCE HOLIDAY SHOPPING DEBT
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