Last updated: October 31, 2026. This article is for general information only and is not personal financial, credit or legal advice. Terms, fees and credit reporting differ by provider and change over time, so read your provider’s current terms and confirm details with a qualified financial professional. This guide is not affiliated with any BNPL provider or LendingTree.
Splitting a holiday purchase into four easy payments feels harmless, and often it is, when each payment is on schedule. But a LendingTree survey published in 2026 found that nearly half of buy now, pay later (BNPL) users paid late on at least one loan in the past year. With Black Friday on November 27, here is what the data shows, where the risks hide, and a checklist for using BNPL carefully.
The Short Answer
- BNPL lets you spread a purchase over several payments instead of paying all at once.
- It can be useful if you have the money for every payment and keep track of the dates.
- It becomes risky when several loans overlap, when it covers everyday essentials, or when you are using it to buy things you could not otherwise afford.
What LendingTree’s 2026 Data Shows
LendingTree’s BNPL research draws on online surveys of about 2,000 U.S. adults aged 18 to 80, run with nonprobability samples, so treat the figures as indicators rather than exact national measurements. Its March 2026 findings include:
| Finding | Result |
|---|---|
| BNPL users who paid late in the past year | 47% (up from 41% in 2025 and 34% in 2024) |
| Late payers whose most recent late payment was about a week late or less | 72% |
| Users who have used BNPL for groceries | 29% (14% two years earlier) |
| Users who have held multiple BNPL loans at once | 63% |
| Users who said they could not make ends meet without BNPL | 54% |
| Users who said BNPL makes them overspend | 68% |
| Users who regretted a BNPL purchase | 54% (48% a year earlier) |
LendingTree’s monthly tracker also found that consideration of BNPL peaked at 48% in December 2025 during the holiday season, and was 43% in October 2026. The most-used providers in the survey were PayPal, Affirm, Klarna and Cash App Afterpay.
How BNPL Works
With a typical “pay in four” plan, you pay a share up front and the rest in installments, often every two weeks. For example, a $400 gift split into four payments is $100 each. Longer plans may charge interest. Whether a plan is interest-free, charges late fees or reports to credit bureaus depends on the provider and the plan, so read the terms before you confirm the purchase.
Where BNPL Goes Wrong
1. Loans stack up
One $100 payment is easy to remember. Five loans from three apps with different due dates are not. LendingTree reports that 63% of users have held more than one loan at once.
2. Late payments can cost money and credit
Late fees vary by provider. LendingTree notes that a late payment generally needs to be 30 or more days late to affect credit, and most late payers in its survey were less than a week late. Rules on how BNPL appears in credit scores are still evolving, so do not assume a plan has no effect on your credit.
3. Payments come due when the holiday bills do
BNPL installments land in December and January, alongside travel, utilities and credit card statements. Plan for the full cost, not just the first payment.
4. Returns do not always refund quickly
If you return an item, you may still owe installments until the retailer and the provider process the refund. Check the process before you buy.
A Simple Pre-Purchase Checklist
- Can I pay for this today if I had to? If not, ask whether the purchase is necessary.
- What is the total cost? Check for interest, fees and late-fee rules.
- How many BNPL loans am I already carrying? Add up every upcoming payment date across all apps.
- Is autopay tied to an account with enough money? Overdraft fees can add to the cost.
- What is the return process? Know how and when refunds are credited.
- Does this fit my holiday budget? Write the gift total down before shopping, and stop when you reach it.
Alternatives to Consider
- Save in a dedicated holiday fund over the next few weeks and shop only what you can afford.
- Use a credit card you pay in full each month, which also gives you dispute rights if something goes wrong.
- Set a per-person spending cap and use a simple method such as zero-based budgeting. Our guide to the zero budgeting system explains how to give every dollar a job.
How BNPL Fits Into the Bigger Credit Picture
Your overall credit health matters more than any one purchase. If you want to see where you stand, our article on the average credit score in 2026 explains what FICO’s latest data shows about the divide between higher and lower scores. To understand how big the shopping season is expected to be, read our summary of Adobe’s $275.1 billion holiday forecast. And to avoid fake stores that take your payment details, see our guide to Black Friday scams and how to pay safely.
Frequently Asked Questions
Is buy now, pay later bad?
Not necessarily. Used for planned purchases you can afford, with payments tracked, it can work. The risk comes from overlapping loans and using it for essentials you cannot otherwise cover.
How many BNPL users pay late?
47% of users in LendingTree’s March 2026 survey said they paid late in the past year, up from 41% in 2025.
Does BNPL affect my credit score?
It depends on the provider and plan. Reporting practices vary and are changing, so read the provider’s terms.
Is BNPL cheaper than a credit card?
It can be if the plan is interest-free and you pay on time. Compare total fees and rates, and remember a card paid in full monthly costs no interest.
What should I do if I cannot make a payment?
Contact the provider before the due date to ask about options, and avoid taking on new BNPL loans until you are caught up.
Sources: LendingTree, “BNPL Tracker: Nearly Half of BNPL Users Have Paid Late in the Past Year” (lendingtree.com/personal/buy-now-pay-later-loan-statistics), survey fieldwork March 2026 and October 2026. Survey figures reflect self-reported responses from nonprobability online samples. Figures and provider terms may change.
