Americans with low credit scores use ‘Buy Now, Pay Later’ more often

(CNN)– A new report says Americans with low credit scores use the “Buy now, Pay later” option.

The Federal Reserve Bank of New York says people with a low credit score or who were declined for a credit application or who fell delinquent on a loan in the past year are more than three times as likely to use the short-term installment payment option.

However, economists, attorney general’s and consumer advocates have raised concerns about the option.

They all noted the lack of data, transparency and formal regulations make it difficult to know and track just how much additional debt consumers are incurring.