Daniel Rosen argues buy-now-pay-later services like Klarna and Afterpay are debt traps. You get no rewards for paying on time, but one missed payment stays on your credit report for seven years. Credit bureaus and lenders blocked a fix that could have helped.
Buy now, pay later is not helping anyone. We're not seeing it help one single person. Klarna, Afterpay, Affirm, 4 easy payments. It's the only debt in America that can only hurt you. You pay every one of them on time for a year, perfect, never late, and you get nothing. Zero points, not one. But if you miss just one payment, It's on your report for 7 years. Heads, they win. Tails, you lose. That's their whole product. And it gets worse. FICO actually built the fix, and then the bureaus asked those lenders to hand over the data, and 2 of the biggest said no.
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