Good Lifestyle

In recent years, almost everyone has felt the crushing of inflation. There are a few lifestyle choices, such as the tightening of your vacation budget or upgrading your wardrobe, which could postpone financial misfortunes. But let's be real: temptation abounds, especially with Tons of credit cards and the purchase options of more and past. One of these tools, Afterpay, recently had heat for the impact it could have on your credit scoring.

In a recent video, Credit Expert Chase (@Chasethecreditexpert) said that the results could be disastrous. Read the rest to know how to avoid the negative impacts of the use of the suite and why you may want to consider different payment options in the future.

In relation: Never use automatically for these 6 invoices, according to financial experts .

In his video , Chase answers another video by the user of Tiktok Datura Jonez (@Daturajonez), who says that afterpay has " has become uncontrollable "He says that his catch is correct and that each time he sees after someone's credit report, it is always because it has a negative impact on their score. AE0FCC31AE342FD3A1346EBB1F342FCB

"Each time you miss a payment, it will certainly report this to your credit report, which will lower your score from 80 to 100 points," explains Chase.

Credit ratings, which can go up to 850, are considered "excellent" at 800 and over, "very well" between 740 and 799, "good" between 670 and 639, and "fair" Between 580 and 669 , according to Equifax. Thus, a decrease of 100 points could drop you up to two levels, harming your ability to find accommodation, open credit cards and sometimes even get a job.

In addition, Experian credit experts say that repairing your credit scoring is difficult. "THE a length of time It is necessary to rebuild your credit history depends on the severity of your credit problems and how your credit history has been affected, "they write." It could take a few months, or it may require several years of engagement. ""

Rod Griffin , the main director of consumer education and advocacy at Experian, told CNBC that the recovery of a score that the appeal wells could take some time.

"If reported, a failed payment Can be noted on your credit report for seven years and will have a negative impact on your credit scoring, "he said." At the same time, if a `` buying now paying later '' reports information on the account for credit report agencies like Experian, and you manage debt in a responsible manner, these services can be a useful way to create credit . ""

When used correctly, Afterpay allows you to pay the items in four payments. You pay the first song At the time of purchase and the rest in six weeks, according to his website. Although a credit card will charge you interest if you are not paying your bill at the end of the month, Afterpay is an interest.

But if you miss a payment, the costs will add up. The service invoice late fees capped by 25% for orders less than $ 40; For each $ 40 or more order, delay fees are capped at $ 68. "We have also Break your account Until the balance is paid and you are back on the right track, "they write on their website.

In the comments of Chase's video, there were both supporters and detractors of the service.

"All these payments due at the same time will eat literally," wrote a person. "It is a very dangerous slippery slope," said another.

Other people have noted that if you pay your bill on time, afterpay can be a boon. "My afterpay," says Klarna has never been a problem. These are people who do not know how to manage money is the problem lol, "said one.

Another person noted: "My afterpay is always paid! I only buy one thing at a time, so I'm not overwhelmed by costs later." To this comment, Chase replied: "A way so perfect to manage this account. Still killing them. I see them ruining customers' credit every day, and it's so sad." Continue. "

It is a personal choice to weigh the advantages and disadvantages for yourself and your finances.

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Best Life offers the most up -to -date financial information for high -level experts and latest news and research, but our content is not supposed to replace professional advice. Regarding the money you spend, save or invest, always consult your financial advisor directly.