Vig (@vig_says) “THE FOUR-PAYMENT ILLUSION ────────────────── "Four interest-free payments" isn't” — TopicDigg

THE FOUR-PAYMENT ILLUSION ────────────────── "Four interest-free payments" isn't a discount. It's underwriting with the numbers hidden. ────────────────── > someone posted their Klarna balance today: £17,000 - on a product marketed as 4 payments, no interest > BNPL providers don't share data with each other - split $2,000 across Klarna, Affirm, and Afterpay and none of the three sees what the other two already lent you > miss one installment and the "interest-free" plan can convert to late fees - and in some cases retroactive interest - on the full balance > unlike a credit card, most BNPL debt isn't reported to a bureau until it's already gone to collections, so there's no early warning for you or your next lender ────────────────── A credit card has to tell you the APR up front. BNPL sells you the absence of a number - then collects like there was one all along.