By Melissa Lambarena | NerdWallet

“Buy now, pay later” plans have become a common option at checkout when shopping in store or online. Some plans, like the pay-in-four option, are appealing since they typically don’t charge interest or require a hard credit check that impacts credit scores.

These plans may seem like another payment method next to debit or credit, but they are installment loans that divide your purchase into several payments, with the first one typically due at checkout. The Consumer Financial Protection Bureau’s latest rule, as of May 2024, further clarifies that buy now, pay later lenders are credit card providers. They must provide some of the same legal protections and rights that apply to credit cards, such as the ability to get a refund after returning a product.

If you qualify for buy now, pay later, it can be easy to become overextended if you take on several plans, so using them frequently as a form of credit may be problematic.

Here’s how to use buy now, pay later the smart way.

Aim to use it strategically

A buy now, pay later plan can make sense to free up cash flow — if you know you’ll have the money to pay it off based on the terms. Review your budget to see whether a buy now, pay later purchase is truly affordable before accepting it. Given that they are loans, avoid reliance on these plans to cover basic necessities if possible. Frequent use of these plans to make ends meet could indicate that you need a financial strategy before an unexpected emergency or setback puts you in the red.

“They can look at their budget in general,” says Trent Graham, a program performance and quality assurance specialist at GreenPath, a nonprofit credit counseling agency. “What’s the cash coming in compared to the cash going out without use of credit? What are options or ideas on cutting back on expenses or increasing the income, one of the two, to balance that budget out?”

If possible, leave space in your budget for unforeseen expenses. Ideally, an emergency fund can cover unexpected costs that may arise to stay on track.

Avoid taking on too many plans at once

Buy now, pay later lenders may not report ongoing payments to major credit bureaus, so they might not have visibility into the number of plans you hold with different companies. As a result, it’s possible to become overextended.

If you do have several buy now, pay later plans open at the same time, keep on top of varying terms and due dates. Graham suggests staying organized with budgeting apps, a notebook, a calendar, or other ways to track and plan for these loans. Choose an option that works for you.

Pay on time

Buy now, pay later plans are a form of credit, but they don’t typically help build it. In some cases, in fact, they can harm your credit. Payment history usually isn’t reported to credit bureaus for buy now, pay later plans at this time, but missing a payment could have adverse ripple effects, depending on the lender.

Paying late can lead to fees or a frozen account that prevents purchases. Eventually, the debt can be charged off and may be turned over to a debt collector. These actions can be reported to credit bureaus and hurt your credit history. If you anticipate trouble paying on time, some lenders may allow changes to payment due dates.

Again, while it’s not recommended to juggle too many buy now, pay later plans at once, staying organized can keep them manageable. Among those who have opened credit cards, personal loans, auto loans, student loans or mortgages, customers who also have buy now, pay later plans were more than twice as likely to be delinquent on at least one of those products by 30 days or longer, according to a 2023 report by the CFPB.

Select your payment method thoughtfully

Some buy now, pay later lenders allow installments to be paid with a debit card, credit card or other options. Whether you’re required to sign up for automatic repayments or you select that option, choose the payment method thoughtfully based on your goals and the purchase amount.

Automatic payments with a debit card, for instance, could lead to overdraft or nonsufficient fund fees if there isn’t enough money to cover the payment. Paying with a credit card can avoid this issue, but if you carry a balance from buy now, pay later plans over several months, you could be paying interest charges. A large purchase could also impact your credit utilization ratio if it uses more than 30% of your available credit. It’s a key factor in credit scores.

Understand the terms

If you’re in a hurry to check out, It may be tempting to accept a buy now, pay later plan without reading the terms of the loan. But doing so could lead to unwanted surprises. The terms aren’t the same for all lenders, and they sometimes aren’t easy to find. Track them down on the lender’s website and read them carefully to know what to expect from the plan, including any potential fees.

Melissa Lambarena writes for NerdWallet. Email: mlambarena@nerdwallet.com. Twitter: @LissaLambarena.

The article How to Use Buy Now, Pay Later Like a Pro originally appeared on NerdWallet.

Tyler Wahl’s previous runs at Mayo Clinic Square didn’t quite carry the same intensity as what he endured this week.

When Lakeville North played in the high school state tournament, the Panthers sometimes practiced at the Timberwolves and Lynx facility ahead of Target Center games.

This week, the Lakeville North alum was dueling it out with his new Summer League teammates in his first taste of pro basketball.

“It’s a little different, a little more physical. I felt all the big bodies,” Wahl told reporters this week. “But at the end of the day it’s always fun to get in here, compete, get better, and I’m ready to work towards something here.”

Essentially, what the 23-year-old is working toward is an opportunity. After five collegiate seasons at Wisconsin, Wahl went undrafted — which he expected — and quickly received an invitation to join the Timberwolves’ Summer League team, which also wasn’t a surprise.

“That was kind of the first call after the draft, and we jumped right on it,” Wahl said. “I feel like I had a pretty good (pre-draft) workout here. … (My agent and I) feel like we had somewhat of an idea of what was going to happen, but it’s really a dream come true to be here, be in the hometown, just 30 minutes from home. I really couldn’t ask for a better start.”

The Wolves kick off Summer League competition at 4 p.m. Central time Friday in Las Vegas with a game against the New Orleans Pelicans. How much Wahl plays in that game – or any Summer League game – remains to be seen. Minnesota’s Summer League roster is packed with draft picks that figure into the NBA team’s future plans. The team’s NBA roster spots are all spoken for, though two-way roster spots are fluid until the season begins.

Still, Wahl landed with the Timberwolves for a reason.

“He plays hard, man. He plays really hard,” Timberwolves Summer League head coach Chris Hines said. “I like the fact he has a nose for the ball, offensive rebounds, he’s a smart guy. We’ll definitely utilize him.”

Those were certainly Wahl’s primary traits with the Badgers — a gritty defender and rebounder who was willing to do the little things required to win. If he can show that in Las Vegas, whether that be in games or even just practice, he could land with the Wolves’ G-League team in Iowa.

Earlier this week, Wahl wasn’t overly consumed with his expected role over the coming week-plus of competition.

“At the end of the day, I think it’s just about getting better every single day,” he said. “I’m going to go out there, try to prove that I belong out here and get my best foot forward. Give that energy, be communicating with everybody and just be a positive impact on the team.

“I’m just happy to really be here and give all that I have.”

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The search continues for a missing 56-year-old woman and the Dakota County Sheriff’s Office said Thursday her boyfriend is a person of interest in the case.

Nicole Anderson was last seen walking away from her Randolph Township residence about 10 a.m. Saturday, her family reported to law enforcement on Monday.

Nicole Anderson (Courtesy of the Dakota County Sheriff’s Office)

“That afternoon, investigators conducted an extensive search of the home, property, and surrounding area on foot and by air, utilizing canines, drones, and helicopters,” the Dakota County Sheriff’s Office said in a Thursday statement.

Investigators carried out a search warrant Wednesday at Anderson’s 42-year-old boyfriend’s residence in Randolph, which was a place that Anderson spent time, but she wasn’t found.

The boyfriend had a probation violation warrant from Le Sueur County. He wasn’t home when deputies executed the search warrant, but turned himself in at the home soon after and he was arrested on the warrant. Deputies questioned him about Anderson’s disappearance, according to the sheriff’s office.

He was booked into the Dakota County jail and will be released to Le Sueur County on his warrant, the sheriff’s office said, noting that he is not being held related to Anderson’s disappearance.

“We continue our exhaustive efforts to locate Ms. Anderson,” the sheriff’s office statement said.

They’re asking anyone with information to contact them at 651-438-TIPS or crimeandwarranttips@co.dakota.mn.us.

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