Buy Now Pay Later vs Credit Card: What’s Better?
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...