A new LendingTree report reveals that a majority of shoppers prefer store cards over buy now, pay later (BNPL) options, particularly older generations. While BNPL is popular with younger demographics, concerns about long-term interest rates are driving some to choose store cards.
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. Many short-term BNPL s do not charge interest, but longer-term loans do, and on the higher end, those rates can be significant. 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 TransUnion
Store Cards Buy Now Pay Later BNPL Consumer Spending Credit Cards
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