Credit Smart Solutions

Buy Now Pay Later vs Credit Card: What’s Better? In 2025, Australians are spoiled for choice when it comes to flexible payments. Whether you're buying a new phone or booking a holiday, the decision between using a credit card or a Buy Now Pay Later (BNPL) service like Afterpay or Zip is more relevant than ever. But which one is better for your wallet and credit score? What is Buy Now Pay Later? BNPL lets you pay for items in instalments—usually interest-free—over weeks or months. Popular providers in Australia include: Afterpay : 4 fortnightly payments Zip Pay : Flexible limits and scheduled repayments Klarna : 4 payments over 6 weeks Pros of BNPL Easy approval, even with low credit scores Interest-free if payments are on time Quick checkout with online retailers Cons of BNPL Late fees can add up quickly Doesn’t build your credit history Encourages impulsive spending What About Credit Cards? Credit cards offer more flexibility and can he...

When BNPL Went Too Far: Daniel’s Wake-Up Call and Recovery Plan Daniel, a 25-year-old barista from Sydney, didn’t think twice before using Afterpay, Zip, and Klarna. They felt easy, interest-free, and perfect for when payday was still a week away. Until one day, he realized he owed over $3,500 — across four BNPL platforms — and couldn’t remember what half of it was for. 💸 The ‘Buy Now, Panic Later’ Trap It started with small things: a new pair of sneakers here, some headphones there. Daniel was paying off weekly instalments… until they stacked up. Afterpay: $1,050 Zip: $820 Klarna: $700 LatitudePay: $960 Late fees started adding up. His debit card kept bouncing. One month, 40% of his take-home pay went to BNPL repayments. 📉 The Wake-Up Call Daniel tried to apply for a car loan and was rejected — due to a poor repayment history flagged by multiple BNPL entries. That was the slap of reality. ✅ The Recovery Plan 1. Paused All New BNPL Spending He...

Credit Cards vs Buy Now Pay Later: Which Is Better? Australians now have more choices than ever when it comes to flexible payments. Whether it's using a traditional credit card or a Buy Now Pay Later (BNPL) service like Afterpay or ZipPay, both offer convenience—but which one is better? How They Work Credit Cards Pay with borrowed money, then repay monthly Interest applies if you don’t repay the full amount May offer rewards or cashback Buy Now Pay Later (BNPL) Split purchase into interest-free instalments (usually 4) Must link to debit/credit card for automatic deductions No interest, but late fees apply Pros & Cons Feature Credit Card BNPL Interest Yes (15–20% p.a.) No interest Late Fees Yes Yes Credit Score Impact Yes Varies (usually no unless defaulted) Rewards Points, cashback, insurance Usually none Flexibility High (lar...