Using Apple Pay Later is essentially taking out a loan, like any BNPL service.
What is buy now, pay later?
Although BNPL has some perks for breaking up a major expense, there are risks involved.
Even if these loans have little-to-no interest, you are still taking on debt.
Thats whyLifehacker has previously advisedagainst making a habit of using these services.
How does Apple Pay Later compare to other BNPL services?
Apple Pay Later works like most other BNPL services, likeKlarna,Afterpay,ZipandPay in 4 with PayPal.
All of these services only offer one loan option of four interest-free payments.
The interest-free aspect is key, and perhaps the biggest appeal of any BNPL program.
That means youll need to link a debit card to the service.
Then youd pay $125 three more times every two weeks.
The biggest difference between Apple Pay Later and competing BNPL services is that Apple doesnt charge any fees.
What are the risks of Apple Pay Later?
As I mentioned above, Apple users may be drawn to the convenience of Apple Pay Later.
They can make it all too easy to spend more than it’s possible for you to actually afford.
Lets say you dont even fear the growing omnipotence of Apple as a company.
Keep an eye on your account balance.Apple Pay Later is not a credit card.
Even if Apple doesnt charge fees for missed payments, your bank will still charge you overdraft fees.
Plus, if you default on a BNPL loan, youre at risk of damaging your credit score.
