BNPL Tracker: 35% of Consumers Considering Applying for Buy Now, Pay Later Loan This Month

More than 1 in 3 consumers (35%) say they’re at least considering using a buy now, pay later (BNPL) loan this month, according to the December 2024 LendingTree BNPL Tracker. That’s unchanged from November’s total, which was the highest percentage since September 2023.

Each month, the LendingTree BNPL Tracker asks Americans if they plan to apply for a BNPL loan this month and how confident they feel about paying it off without missing a payment. We also ask how often consumers expect to apply for a BNPL loan in the next six months. (See the tracker methodology.)

We’ll update this page as new data emerges.

How many Americans expect to use buy now, pay later loans this month?

The December 2024 LendingTree BNPL Tracker finds that 35% of Americans are considering applying for a BNPL installment loan this month. That’s unchanged from November, which had been the highest percentage since September 2023’s 35%.

This month’s percentage includes 20% who say they expect to apply and 15% who say they might.

Additionally, 45% of Americans say they expect to apply for a BNPL loan at least once in the next six months, unchanged from November, which had marked the highest percentage since June 2023’s record 51%. That 45% includes 13% who say they expect to do so at least three times in that period.

Generally speaking, BNPL usage doesn’t help you build credit the way using a credit card, a personal loan or another type of loan can. BNPL loans aren’t typically included in credit-scoring formulas. That’s highly likely to change in the next few years as lenders, credit bureaus and credit-scoring companies figure out how best to incorporate these loans into formulas. For now, however, that spotless payment history on your BNPL loan isn’t likely helping your credit score.

Once that changes, we could see a spike in BNPL loan usage. A LendingTree survey conducted in March 2024 and published in April 2024 found that 56% of BNPL users said they’d be more likely to use BNPL loans if they helped build credit. Just 16% said they’d be less likely to use them, and 28% said it wouldn’t affect their decision.

More than 6 in 10 parents with young children (64%) who’ve utilized BNPL said they’d be more likely to do so if it helped them build their credit, while 61% of men, Gen Z (ages 18 to 27) and millennial (age 28 to 43) BNPL users said so.

How many Americans have been late with a payment on a BNPL loan?

A 2024 LendingTree survey found that 47% of BNPL users had made a late payment on one of the loans, including 34% who had paid late on one in the past year.

That’s a big percentage. However, it makes sense based on consumer confidence levels in our monthly BNPL Tracker.

While that adds up to 83% of people feeling at least some confidence about paying off BNPL loans on time, it still means a significant number of people take out these loans with doubts about whether they’ll be able to pay them back without incident. That’s far from ideal.

Just 5% say they aren’t confident (either somewhat or very), while 12% say they’re neither confident nor unconfident.

How much do people spend with buy now, pay later loans?

The average purchase amount of a BNPL loan is $132, according to an April 2023 report from Experian.

However, there’s no question that BNPL is used for a huge variety of items at a wide range of prices. For example, the 2024 LendingTree survey showed that consumers used the loans for everything from groceries and dining out to travel, technology items and home decor.

Half of BNPL users (50%) said BNPL is their preferred method of payment for stretch purchases — meaning those that they can’t quite afford to pay cash for — while 34% said they preferred credit cards for these buys.

What are some of the most popular buy now, pay later services?

PayPal, Affirm, Afterpay and Klarna are the most popular BNPL apps.

BNPL is a crowded field with many players — including Apple, whose Apple Pay Later service ranked as the fifth most commonly used service in our survey despite launching only in March 2023 — but these four were clearly among the most used, according to the 2024 LendingTree survey.

More than half of all BNPL users said they’ve used PayPal (53%), while 37% have used Affirm, 33% have used Afterpay and 30% have used Klarna. Among the other firms we asked about, only Apple Pay Later (13%) was used by more than 10% of respondents.

All four companies offer BNPL apps, but their services can also be used through web browsers — often through retailers’ online checkout pages.

What do you need to know before getting a buy now, pay later loan?

If you’re one of the millions of Americans who’ve tried BNPL loans — or if you’re among the millions more likely to consider them in the near future — here are some key things to keep in mind:

• You may be asked to pay every two weeks. With most loans, consumers are required to pay monthly. However, with many BNPL loans — especially those of the “pay-in-four” variety — you’ll be expected to pay every two weeks. BNPL lenders typically require you to connect a debit or credit card to your account when you first use it so that payments can be pulled automatically when due. You’ll need to make sure you have sufficient funds or available credit on the due date to ensure the automatic payment is successful.
• Many (but not all) BNPL loans are interest-free. Pay-in-four BNPL loans are often interest-free if you pay them on time. However, longer-term buy now, pay later loans can have interest rates as high as 30%, rivaling the highest credit card rates. Make sure you understand the rates before applying, because what you don’t know can cost you.
• Your credit may or may not be affected. Your mileage may vary greatly by lender when it comes to handling credit. That’s true both in terms of approving folks for loans and reporting payment histories. Some require soft credit checks, while others do nothing. Some will charge late fees and report missed payments to credit bureaus, while others won’t — and it can sometimes be a challenge to find this information. BNPL loans aren’t subject to specific disclosure requirements like credit cards, but it’s worth your time to seek this information.
• You have other options. Buy now, pay later loans can be great tools. They’re often interest-free, with predictable payment schedules and no extras available that can draw people into debt — but they’re not always the best option. Credit cards provide long-term available credit, typically more lucrative rewards and important consumer protections that BNPL doesn’t. Zero-percent balance transfer cards and low-interest personal loans allow you to consolidate and refinance debts. Even store credit cards, when used wisely, can provide targeted rewards and discounts that can be a good deal for the right customer.
• Don’t rush into it. People make bad decisions when rushed and don’t understand what they’re getting into — and money is no exception. Before you apply for that BNPL loan, click the “learn more” or “more info” button on the retailer’s checkout page. Make sure you understand the basics — interest rates, payment schedules, credit checks, fees — before applying. You’ll be glad you did.

LendingTree BNPL Tracker methodology

LendingTree commissioned QuestionPro to conduct an online survey of 2,049 U.S. consumers ages 18 to 78 from Dec. 10 to 12, 2024. The survey was administered using a nonprobability-based sample, and quotas were used to ensure the sample base represented the overall population. Researchers reviewed all responses for quality control.