Article 6YTDB Banks View Heavy 'Buy Now, Pay Later' Use as Red Flag for Loan Approvals

Banks View Heavy 'Buy Now, Pay Later' Use as Red Flag for Loan Approvals

by
msmash
from Slashdot on (#6YTDB)
Banks are treating "buy now, pay later" services with suspicion and warn that heavy usage could hurt customers' chances of getting approved for mortgages or credit cards. FICO will begin factoring some BNPL loans from companies like Affirm and Klarna into credit scores later this year through its new scoring model. JPMorgan Chase and Capital One have banned customers from using credit cards to pay down BNPL installment loans, while one credit union actively calls members who use BNPL to counsel them against it. BNPL transaction volume is expected to reach $116.67 billion in 2025, up from $13.88 billion in 2020, according to Emarketer.

twitter_icon_large.pngfacebook_icon_large.png

Read more of this story at Slashdot.

External Content
Source RSS or Atom Feed
Feed Location https://rss.slashdot.org/Slashdot/slashdotMain
Feed Title Slashdot
Feed Link https://slashdot.org/
Feed Copyright Copyright Slashdot Media. All Rights Reserved.
Reply 0 comments