12 Purchases You Should Never Use "Buy Now, Pay Later" For

Buy Now, Pay Later (BNPL) has made it easier than ever to spend money you don't have. Whether you're trying to stretch your fast food budget or keep your household afloat, it can be convenient and tempting. But relying too heavily on BNPL to cover expenses could dig you deeper into debt in a time when more and more Americans are already financially strained.

As inflation drives up the cost of everything from gas to groceries, it's understandable to look for ways to make your paycheck go further. Still, BNPL isn't free money: it's a loan. So, before hitting purchase, here are 12 things you should avoid using BNPL for.

Using Buy Now, Pay Later for food delivery is a red flag. Today, even services like DoorDash or Uber Eats can be financed through installed payments.

A recent Newsweek report highlighted a new partnership between DoorDash and Klarna, a popular service that offers BNPL options. Customers can now use BNPL to pay for food delivery, groceries, and DashPass annual plans in full or at a later date.

But many worry that this is a clear sign that some consumers may be overextending financially. If you're financing takeout, it likely means that your budget is already stretched. Look for ways to plan more meals at home to reduce delivery spending altogether.

Luxury items might feel like a reward, but if you can't afford them upfront, they're likely not worth financing. BNPL is an easy way to turn a "want" into a recurring expense, which can ultimately throw off your finances.

Luxury purchases often aren't urgent and can wait. A smarter move would be to set money aside over time and avoid debt rather than taking out a loan for something that isn't essential.

It's tempting to spring for the latest phone or laptop using BNPL, especially when the payments seem small. But if your current device still works, it's better to wait.

Taking on debt for non-essential upgrades can seriously damage your finances with late payments and interest. Holding off until you can pay in full helps you prioritize needs over wants and keep your finances on firmer ground.

It may seem harmless to split the payment for new shoes or a special occasion outfit. But, using BNPL for clothing can quickly turn into ongoing debt, especially when trends are driving the purchases.

Regularly financing your wardrobe can signal a deeper cash flow problem. Choosing to shop at thrift stores or waiting for sales can be a smarter option.

Experiences can be meaningful, but financing them with BNPL might mean paying long after the fun is over.

If you're borrowing to attend a concert or take a weekend trip, it could indicate you're stretching beyond your financial comfort zone. Instead, save in advance or look for lower-cost alternatives to skip the lingering payments.

Large home purchases can feel like necessities, but BNPL often turns these into budget-draining commitments. Unless something is really crucial (like replacing a broken bed), financing decor and non-urgent furniture often isn't wise.

Focus on building an emergency fund or saving gradually to avoid overspending. It's worth waiting a few extra months to avoid turning your living room into a financial liability.

Caring for pets is important, but using BNPL for things like grooming and accessories can signal financial strain.

Most pet costs are predictable and should be part of your monthly budget, excluding emergency care. If you're borrowing for your pets' everyday needs, it's worth reassessing your budget to avoid future debt.

Spreading out payments on subscription boxes or streaming bundles might seem like a small commitment, but these costs can add up fast, especially when stacked.

It's a warning sign if you're using financing for non-essential subscriptions. Cutting back or canceling temporarily could free up cash until you reassess your budget.

It's easy to want to give your kids everything, especially during birthdays or holidays. But using BNPL to buy toys and gadgets can quickly backfire.

These purchases are often short-lived, but the payments can stick around. Plan ahead and set spending limits (that you actually stick to) to protect your household from avoidable debt.

While personal care is important, using BNPL for makeup or skincare can turn into a costly habit, especially if you're chasing luxury brands.

These purchases often feel small, but they can quickly add up, especially if you have multiple installment plans running at once. Not only that, but shelling out money in installments for a facial or beauty treatment you had weeks ago might not feel so great if you find yourself in a tough spot financially.

A better approach is to set aside a monthly budget for beauty expenses and avoid splurges.

It might feel generous to buy gifts using BNPL, but borrowing to give often leads to regret once the bills arrive. The holidays often lead to spikes in spending, but financing can lead to long-term strain.

Holidays are predictable, so consider saving early in the year and setting clear spending limits on gift-giving. Sometimes, lower-cost gifts can mean just as much without the lingering debt.

A home gym setup or new fitness subscription might feel like a worthy investment, but financing it with BNPL isn't always the best idea, especially if your motivation fades fast.

If you're unsure you'll use it consistently, you could end up paying for something you barely touch. Instead, start small with free workouts or low-cost trials before committing to bigger purchases.

It can be easy to justify BNPL's low upfront cost, but it's best to avoid it for discretionary expenses, including grocery deliveries, luxury items, and tech upgrades. Financing wants rather than essentials can signal and exacerbate deeper financial strain and tempt you to live beyond your means. Instead, budgeting and prioritizing needs over wants is a smarter route to avoid wasting money.

While it may seem like a convenient option, it often comes with late fees and encourages overspending. And starting this fall, FICO will begin including BNPL loan data in credit scores. This means that timely payments could improve your score, but missed or late payments may hurt it now, too.