CFPB Publishes New Conclusions on Economical Profiles of Invest in Now, Pay back Later Debtors

WASHINGTON, D.C. – The Purchaser Fiscal Safety Bureau (CFPB) has revealed a new report examining the financial profiles of Acquire Now, Pay out Later borrowers. Although many Buy Now, Pay back Later borrowers use the product or service without recognizable indications of fiscal stress, the report finds that Get Now, Shell out Later on debtors are a lot more probable to be energetic end users of other varieties of credit rating items like credit rating playing cards, personal loans, and university student financial loans. They are also additional very likely to exhibit steps of economical distress than non-people. For case in point, Acquire Now, Fork out Later debtors are additional most likely to be really indebted or have revolving balances or delinquencies on their credit history playing cards compared to customers who do not use Get Now, Pay out Afterwards items. Acquire Now, Shell out Afterwards borrowers are also far more probably to use superior-desire economical solutions this kind of as payday loans, pawn financial loans, and bank account overdrafts. The report follows preceding CFPB exploration on the Obtain Now, Shell out Later on current market.

“A widespread false impression of Purchase Now, Spend Later borrowers is that they absence access to other sorts of credit rating. Our evaluation displays that these borrowers are far more likely to use other credit history products and solutions,” explained CFPB Director Rohit Chopra. “Since Purchase Now, Spend Later on is like other forms of credit, we are doing the job to assure that borrowers have related protections and that businesses enjoy by related procedures.”

Today’s report displays that it is much more most likely that a Get Now, Spend Later borrower actively employs other credit products. Debtors typically exhibit greater actions of financial distress as opposed to non-debtors. Some examples include having greater credit card financial debt and utilization premiums, a higher likelihood of getting an overdraft, a bigger likelihood of revolving on at the very least 1 credit card, and bigger utilization premiums of alternative economical solutions like payday loans that charge substantial fascination premiums. Nonetheless, the report finds that quite a few of these variances pre-date Obtain Now, Spend Later use and highlights the have to have for further research into irrespective of whether the goods have any causal effects on customer indebtedness.

In general, 17% of consumers with a credit history file employed a Invest in Now, Shell out Later mortgage in the year prior to the study. Other conclusions from today’s report incorporate:

  • Just about 95% of Invest in Now, Pay out Afterwards borrowers experienced at least one credit history in an additional account, compared to 86% of non-borrowers.
  • Buy Now, Fork out Later on debtors had noticeably increased utilization in several other personal loan solutions when in comparison to non-debtors, together with retail accounts (62% in comparison to 44%), individual loans (32% in contrast to 13%), and scholar loans (33% when compared to 17%).
  • Black, Hispanic, and female people are a lot more probably than typical to use Purchase Now, Pay Afterwards solutions, together with customers with cash flow among $20,001-$50,000.
  • Among people who have open up credit score or retail playing cards, own financial loans, auto financial loans, student financial loans or mortgages, Purchase Now, Pay out Later on borrowers were more than twice as likely to be delinquent on at the very least a person of people products by 30 days or more time.
  • Eighteen p.c of Obtain Now, Pay back Later on debtors had at minimum 1 reported delinquency in another account, in comparison to 7% of non-debtors. Delinquency prices were being substantially higher for credit history (9%) and retail playing cards (8%) between Acquire Now, Shell out Later borrowers in contrast to non-debtors (3% and 1% respectively).

Get Now, Pay out Later debtors also commonly had lessen credit rating scores than non-debtors. Non-debtors had an average credit history score labeled as in close proximity to-key (670-739), when borrowers had an common rating in the sub-primary classification (580-669). Decreased credit rating scores direct to larger fascination premiums on conventional credit history products and solutions, which helps make Obtain Now, Pay out Later financial loans with no fascination an beautiful alternative that many debtors search for.

The info for the report, Shopper Use of Acquire Now, Pay out Later, comes from the 2022 Creating Ends Meet survey, and the CFPB’s Consumer Credit score Panel, which contains an anonymized sample of credit rating bureau records. The report cannot distinguish irrespective of whether Purchase Now, Pay out Afterwards utilization leads to additional delinquencies on other obligations or whether or not customers who are previously in distress are far more probably to use Obtain Now, Fork out Later on loans to pay back off higher-fascination credit card debt.

Read through today’s report, Purchaser Use of Buy Now, Pay Later.

Examine the CFPB’s earlier results on Acquire Now, Shell out Later industry tendencies.

Customers can submit complaints about fiscal products and solutions or solutions by browsing the CFPB’s website or by calling (855) 411-CFPB (2372).


The Client Money Security Bureau (CFPB) is a 21st century agency that will help shopper finance markets operate by generating rules extra helpful, by persistently and fairly implementing people principles, and by empowering customers to get more management in excess of their economic lives. For a lot more data, go to

Simonne Stigall

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