People turning to BNPL loans to pay for rent, food and other necessities
Summary
Buy now, pay later (BNPL) loans were first meant to help people buy small items. Now, more people are using these loans to pay for important things like rent, groceries, and medical bills. Experts warn this can be risky because the costs and fees are not always clear.Key Facts
- BNPL loans let buyers split payments into smaller parts, usually four payments over a few weeks or months.
- These loans often do not require a credit check and are offered quickly during checkout online or in stores.
- In 2025, Americans borrowed $160 billion using BNPL loans, double the amount two years earlier.
- More than half of BNPL users say they would struggle to pay their bills without these loans.
- Nearly 30% of BNPL users spent the loans on groceries, up from 14% two years ago.
- About 23% have used BNPL loans for medical expenses or rent.
- Lenders make money from fixed fees and a percentage of the loan amount; late fees are less common but late payments can affect future loan approval.
- Some companies are creating new services, like letting renters split monthly rent payments into two parts to help with flexibility.
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