NEW YORK—Credit cards remain the most commonly used form of credit, with 66% of respondents using them in the past 12 months, but buy now, pay later financing is chipping away at credit’s lead, according to a new report.
A study by NerdWallet found 25% of respondents said they had used BNPL services in the last 12 months.
Sara Rathner, a travel and credit cards expert at NerdWallet, said one reason BNPL usage surged is the loans often do not require a credit check or an application process, making the use of these plans “so seamless that it’s very easy for consumers to adopt,” CNBC reported.
Far fewer consumers, about 10%, had used a cash advance app in the last 12 months, the study shows.
BNPL Users
About 6% said they used a payday loan in the last 12 months, while about 8% of adults in the NerdWallet survey said they used BNPL for necessities. An equal share, 8%, expect to use BNPL for necessities in the coming 12 months, CNBC added in its analysis.
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